Tech Talk for Thursday April 7th 2022

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Pre-opening Comments for Thursday June 7th

U.S. equity index futures were higher this morning. S&P 500 futures were up 10 points at 7:30 AM EDT.

The Canadian federal government is scheduled to release its budget today at 4:00 PM EDT

Levi Straus gained $0.58 to $19.99 after reporting higher than consensus fiscal first quarter earnings.

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Capital One (COF $129.28) is expected to open higher after announcing a $5 billion share buyback program

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Costco added $0.61 to $585.40 after the company announced a 19% year-over-year gain in comparable same store March sales.

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HP Inc. gained$4.85 to $39.76 following news that Berkshire Hathaway has acquired an 11% interest in the company.

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EquityClock’s Daily Comment

Headline reads “The yield on the 10-Year Treasury Note is now back to its declining 200-month moving average, a hurdle last tested before the dramatic selloff in stocks during the fourth quarter of 2018”.Following is a link:

http://www.equityclock.com/2022/04/06/stock-market-outlook-for-april-7-2022/

 

Technical Notes released yesterday at

Stocktwits.com@EquityClock

US Vehicle Sales continue to struggle compared to the seasonal average trend this year, but it does not appear to be a factor of weak demand. Vehicle sales increased by 18.9% in March, which is shy of the 20.9% increase that is average for the month. $STUDY $MACRO $CARZ $TSLA $GM $F

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The 10-year US treasury yield is breaking above a massive band of resistance, now on its way to 3%, a level that the equity market is likely to take issue with. equityclock.com/2022/04/05/… $TNX $IEF $TLT $TYX

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Major U.S. Bank SPDRs $KBE moved below $50.85 extending an intermediate downtrend.

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Weakness by major U.S. Banks was led by Goldman Sachs $GS on a move below $318.55 extending an intermediate downtrend.

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Regional Bank SPDRs $KRE moved below $66.53 extending an intermediate downtrend.

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Home Depot $HD a Dow Jones Industrial Average stock moved below $297.49 extending an intermediate downtrend.

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Applied Materials $AMAT a NASDAQ 100 stock moved below $118.17 extending an intermediate downtrend

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Ford $F an S&P 100 stock moved below $15.51 extending an intermediate downtrend.

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Qualcomm $QCOM a NASDAQ 100 stock moved below $139.05 extending an intermediate downtrend.

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Simon Property $SPG an S&P 100 stock moved below $126.49 extending an intermediate downtrend.

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Base metal equities and related ETFs are under technical pressure. HudBay Minerals $HBM.CA moved below Cdn$9.26 completing a double top pattern.

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General Motors $GM an S&P 100 stock moved below $39.75 extending an intermediate downtrend.

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TC Energy $TRP.CA a TSX 60 stock moved above $72.26 to an all-time high extending an intermediate uptrend. Seasonal influences are favourable to August 9th . If a subscriber to EquityClock, see seasonality chart at https://charts.equityclock.com/transcanada-corporation-tsetrp-seasonal-chart-2

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Metro $MRU.CA a TSX 60 stock moved above $72.85 to an all-time high extending an intermediate uptrend. Seasonal influences are favourable to May 21st. If a subscriber to EquityClock, see seasonality chart at https://charts.equityclock.com/metro-inc-tsemru-seasonal-chart

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for April 6th 2022

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for April 6th 2022

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for April 6th 2021

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Green: Increase from previous day

Red: Decrease from previous day

All seasonality ratings are based on performance relative to the S&P 500 Index (except TSX)

 

Links from a Valued Provider

Greg Schnell discusses “A new strategy for investing”

https://www.youtube.com/watch?v=SWTqBiHZ5s0

 

Greg Schnell discusses “Market under pressure”.

https://www.youtube.com/watch?v=eqkdiD9pygM

 

S&P 500 Momentum Barometers

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The intermediate term Barometer plunged 5.01 to 56.11 yesterday. It changed from Overbought to Neutral on a drop below 60.00. Trend is down.

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The long term Barometer slipped 0.20 to 49.70 yesterday. It remains Neutral. Trend is down.

 

TSX Momentum Barometers

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The intermediate term Barometer plunged 6.09 to 56.19 yesterday. It changed from Overbought to Neutral on a drop below 60.00. Trend is down.

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The long term Barometer slipped 0.35 to 60.18 yesterday. It remains Overbought. Trend is down.

 

Disclaimer: Seasonality and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.




9 Responses to “Tech Talk for Thursday April 7th 2022”

  1. bruce Says:

    the AAII this week has the bulls back down to 24.% from 36.9 last week…..the bears have risen to 41.4 from 27.5….hmmm…..maybe we wont crash after all…….

  2. Larry/ON Says:

    The market hasn’t closed but I am seeing a double hammer pattern on SPX at present which would point towards good odds of a reversal and this is at the 200day MA. It’s a very difficult market outside of energy. If bonds are trash though where do you put your money? The biggest bond proxy in Canada which is BCE is outperforming XIU and is up about 12% YTD but is really overextended at present and I am curious to see what it does if the market rallies again. Investors must be piling into BCE for safety but I can’t understand the long-term attraction of a stock that has a 117% div payout ratio. Still if there is an economic downturn people keep paying for their TV, internet and cell phone no matter what. A good stock perhaps on a pullback perhaps down to the 20dayMA.

  3. bruce Says:

    Larry….zwb at 21.32 is yielding 6.11%…..i consider the dividend quite safe….

  4. Paula Says:

    Larry/ON

    RE#2

    I own BCE and am enjoying the ride. I recently signed on to their unlimited wifi service – the first time it has been available in my area. I have used their tv satellite service for years. So why not own it and collect the dividend.

    Bruce,

    Re #3.

    I agree with you on ZWB. I put in limit orders to buy on a further dip if there is even more of a negative reaction to the budget and the surtax on the banks.

  5. Larry/ON Says:

    Bruce maybe the banks will recover here. I like nat gas right now. It’s making new highs going back to 2008 and IMO there is no technical resistance point until maybe a minor one around 7.70 after closing at 6.40 today.

  6. bruce Says:

    technically the banks look pretty bad and their seasonal run ends at the end of April but they are oversold and when the budget is out of the way they may get a pop for the next 2-3 weeks….hopefully because I’m long the zwb……

  7. Larry/ON Says:

    https://markets.businessinsider.com/news/commodities/commodity-prices-oil-metals-more-upside-investor-under-allocation-jpmorgan-2022-4

  8. Ron Says:

    Bruce

    I put in an order this morning to buy ZEB.to above the ask and still didn’t get a fill. Technical indicators strongly suggest we are at a price and momentum low or very close to it.

  9. Ron/BC Says:

    Bruce

    Here is ZEB.to & ZWB.to I don’t think it’s going much lower in the short term…………..As long as ZWB.to doesn’t break below 21. That just might be a big H&S pattern.

    https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=D&yr=1&mn=0&dy=0&id=p80067185775&a=1055739122

    https://stockcharts.com/h-sc/ui?s=ZWB.TO&p=D&yr=2&mn=0&dy=0&id=p95600906477&a=1055022940

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