Pre-opening Comments for Wednesday April 27th
U.S. equity index futures were higher this morning. S&P 500 futures advanced 16 points in pre-opening trade. A major reason for the advance was a share price recovery this morning in Microsoft. After a price drop after the close last night following release of quarterly results, the stock gained $10.62 this morning to $280.84.
Visa gained $11.14 to $212.24 after reporting higher than consensus fiscal second quarter earnings.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/04/clip_image0011-8.png "clip_image001[1]")
Texas Instruments dropped $6.72 to $161.72 after lowering guidance related to COVID restrictions in China
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/04/clip_image0021-15.png "clip_image002[1]")
Chipotle added $41.80 to $1,480.01 after reporting higher than consensus first quarter sales and earnings.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/04/clip_image0031-10.png "clip_image003[1]")
General Motors advanced $0.51 to $38.55 after reporting higher than consensus first quarter results. The company also offered positive second quarter guidance.
EquityClock’s Daily Comment
Headline reads “Utilities sector benchmark showing similar action to what was observed prior to the pandemic plunge in stocks in March of 2020”. Following is the link:
http://www.equityclock.com/2022/04/26/stock-market-outlook-for-april-27-2022/
After the close technical action by GOOGL and MSFT
Microsoft reported slightly higher than consensus quarterly results and Alphabet reported slightly lower than consensus quarterly results. Both stocks dropped sharply. GOOGL plunged $156.49 to $2226.51 and MSFT fell $4.20 to $266.03.
Technical Notes released yesterday at
The atypical rise in the US Dollar is forcing a rotation in the market away from this year’s winners in resource dominated sectors. equityclock.com/2022/04/25/… $USD.X $EURUSD $UUP $USDOLLAR
New Home Sales in the US showed a very rare decline in activity for March, falling by 1.4%. The only other time that new home sales have fallen for March was in 2020 amidst pandemic lockdowns. $STUDY $MACRO #Economy #Housing $ITB $XHB
A rare March increase in manufacturer inventories raises concerns that businesses may not be selling as much product as expected. Manufacturer Inventories increased by 0.6% in March versus the 1.1% decline that is average for the month. $STUDY $MACRO #Economy #Manufacturing
Taiwan iShares $EWT moved below $55.89 extending a long term topping pattern. Responding to spreading COVID 19 infections in nearby China
Auto ETF $CARZ moved below $50.03 extending an intermediate downtrend.
Base metals equities and related ETFs remain under technical pressure. $VALE moved below $16.95 and $15.70 extending an intermediate downtrend.
Technology SPDRs $XLK moved below $140.72 extending an intermediate downtrend.
IDEXX Labs $IDEX a NASDAQ 100 stock moved below $460.36 extending an intermediate downtrend.
Illumina $ILMN a NASDAQ 100 stock moved below $302.79 extending an intermediate downtrend.
Intuit $INTU a NASDAQ 100 stock moved below $422.45 extending an intermediate downtrend.
General Electric $GE an S&P 100 company moved below $85.29 extending an intermediate downtrend. First quarter results were less than consensus
Open Text $OTEX a TSX 60 stock moved below US$40.58 and Cdn.$51.87 extending an intermediate downtrend.
Brookfield Asset Management $BAM.A.CA a TSX 60 stock moved below Cdn$64.26 extending an intermediate downtrend.
Canadian Pacific $CP.CA a TSX 60 stock moved below Cdn$93.10 extending an intermediate downtrend.
Sun Life $SLF.CA a TSX 60 stock moved below Cdn$64.62 completing a Head & Shoulders pattern.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for April 26th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for April 26th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for April 26th 2021
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)
S&P 500 Momentum Barometer
The intermediate term Barometer plunged 9.62 to 33.87 yesterday. It changed from Neutral to Oversold on a move below 40.00. Trend is down.
The long term Barometer dropped 3.81 to 41.88 yesterday. It remains Neutral. Trend is down.
TSX Momentum Barometer
The intermediate term Barometer dropped 2.29 to 28.90 yesterday. It remains Oversold. Trend is down.
The long term Barometer dropped 5.50 to 51.83 yesterday. It remains Neutral. 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.
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April 27th, 2022 at 4:50 am
There is an interesting article from David Rosenberg in the Globe and Mail today. TLT may have made a bottom on April 19th and could be a smart buy right now. RON/BC could you please provide a long-term chart analysis? I quote Rosenberg below.
“I’m not saying the 10-year Treasury yield is going to 1 per cent, but I am saying that the gap between the spot 10-year T-note yield, at 2.79 per cent, and the 200-day moving average, at below 1.7 per cent, represents a two-standard-deviation event, and you always want to invest in such an event – in any asset class.”
April 27th, 2022 at 11:14 am
Base Metals – Quite a powerful reversal from support. RIO up over 4% after touching the 200 day MA. Tech/B up over 11%. XBM up completing a gap fill and bouncing off RSI 30. Stochastics still below 20. The peak to trough decline to Monday’s low in XBM was a bit shy of 20%. Metals were certainly overbought and a lot of money decided that they had now corrected enough.
April 27th, 2022 at 1:07 pm
Larry/ON
Without trying to outguess what Rosenberg really means the TLT chart clearly broke down about the time he referred to buying (April 19th.) That 121.16 high made in mid 2016 “should have” been good support on the pullback but didn’t hold even briefly and support has been broken. The only positive on the chart is the Positive Divergence on the RSI 8 which just suggests a bounce back soon. But price is the main factor so I wouldn’t bet on a positive divergence alone.
https://stockcharts.com/h-sc/ui?s=TLT&p=W&yr=20&mn=0&dy=0&id=p54301250298&a=691763111
April 27th, 2022 at 2:06 pm
Re 3 – Thanks Ron/BC
April 27th, 2022 at 3:28 pm
RON/BC,
RE #5 yesterday: Thanks for the ZEB.TO chart and yes, you are correct. It has broken down. Note I put a ratio chart of RY.TO:ZEB.TO on the bottom of your chart and RY is starting to outperform. Today’s low (so far) on RY.TO was 129.01, very close to the 50EMA on the weekly chart.
April 27th, 2022 at 4:45 pm
Larry/ON and Ron/BC
RE: 1. and 3. Here is a chart of the $TNX, which represents the 20 year yield. I think what David Rosenberg is referring to is the large space between the yield – he uses 2.79% but today it is at 2.82% – and the 200DMA which is currently at 1.71%. A two standard deviation event is a statistical thing that economists look at but he is also using technical analysis.
I got this chart last year, from Greg Schnell who writes for Stockcharts.
https://schrts.co/XWSBYHGt
April 27th, 2022 at 4:46 pm
re #6.Correction
Actually that chart is of the 10 year yield.
April 27th, 2022 at 6:01 pm
Paula
The Ratio chart of RY.TO:ZEB.TO has been in a falling channel for a couple of years now showing RY.to underperforming the ZEB.to group. A selloff to the Fibonacci 38.2% level at 115.88 would get me interested in the stock. Meanwhile there definitely is a Bad Moon Rising……….
https://stockcharts.com/h-sc/ui?s=RY.TO&p=D&yr=3&mn=0&dy=0&id=p68336320093&a=678758555
April 27th, 2022 at 9:34 pm
Ron/BC
Thanks for the perspective.
Sounds ominous.