Pre-opening Comments for Thursday May 12th 2022
U.S. equity index futures were lower at 7:30 AM EDT. S&P 500 futures were down 17 points in pre-opening trade.
April Producer Price Index to be released at 8:30 AM EDT is expected to increase 0.5% versus a gain of 1.4% in March. On a year-over-year basis, April Producer Price Index is expected to increase 10.7% versus a gain of 11.2% in March. Excluding food and energy April Producer Price Index is expected to increase 0.6% versus a gain of 1.0% in March. Excluding food and energy, April Producer Price Index is expected to increase 8.9% versus 9.2% in March.
Walt Disney dropped $3.45 to $101.69 after reporting lower than consensus fiscal second quarter results. The company also offered cautious third quarter guidance.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/05/clip_image0011-7.png "clip_image001[1]")
Beyond Meat plunged $5.89 to $20.28 after reporting lower than consensus first quarter results.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/05/clip_image0021-6.png "clip_image002[1]")
Canadian Tire is expected to open higher after reporting higher than consensus first quarter results. The company also raised its dividend by 25%.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/05/clip_image0031-7.png "clip_image003[1]")
EquityClock’s Daily Comment
Headline reads “Mega-cap tech names encompassing around 20% of the weight of the S&P 500 Index have just broken below levels of support, leading to a further deterioration of market breadth”.
Following is the link:
http://www.equityclock.com/2022/05/11/stock-market-outlook-for-may-12-2022/
CNN Fear and Greed Index
It dropped to 20 yesterday into the “Extreme Fear” level. Following is the link:
Fear and Greed Index – Investor Sentiment | CNN
Technical Notes for yesterday
Industrial SPDRs $XLI moved below $93.09 extending an intermediate downtrend.
Apple $AAPL a Dow Jones Industrial Average stock moved below $149.88 completing a double top pattern.
AutoDesk $ADSK a NASDAQ 100 stock moved below $180.19 extending an intermediate downtrend.
Verisk Analytics $VRSK a NASDAQ 100 stock moved below $174.70 extending an intermediate downtrend.
George Weston $WN.TO a TSX 60 stock moved below intermediate support at $151.72.
Canadian Tire $CTC.A.TO a TSX 60 stock moved below $166.32 extending an intermediate downtrend.
Canopy Growth $WEED.TO a TSX 60 stock moved below $6.48 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 11th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for May 11th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 11th 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)
Links offered by Valued Providers
Links from Mark Bunting and www.uncommonsenseinvestor.com
Essential Principles of Finding 100-Bagger Stocks – Uncommon Sense Investor
How to Handle a Bear Market. – YouTube
John Kosar from www.StockCharts.com says “Get ready for more pain”.
https://www.youtube.com/watch?v=HiCHa9U6HmI
Greg Schnell asks “Is 27% off a deal”?
Is 27% A Sale? | Greg Schnell, CMT | Market Buzz (05.11.22) – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer dropped another 3.21 to 15.23 yesterday. It remains Oversold. Trend remains down. Technical signs of a bottom have yet to arrive.
The long term Barometer slipped another 0.80 to 29.66 yesterday. It remains Oversold. Trend remains down.
TSX Momentum Barometers
The intermediate term Barometer slipped another 0.13 to 14.67 yesterday. It remains Oversold. Trend remains down. Technical signs of a bottom have yet to arrive.
The long term Barometer dropped another 1.18 to 31.56 yesterday. It remains Oversold. Trend remains 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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May 12th, 2022 at 9:00 am
the AAII this week has the bullish % at 24.3 from 26.9 last week and 16.4% 3 weeks ago……the
bears this week are 49.0% vs 52.9 and 59.4% 3 weeks ago……
May 12th, 2022 at 12:22 pm
I can’t recall this level of bearishness with this Index in the past. Must be a sizable bounce nearby. Just need a bullish B.S. “story” to start some short covering. Meanwhile I guess the stores are running out of Pampers.
https://www.cnn.com/markets/fear-and-greed
May 12th, 2022 at 12:59 pm
the AAII has been right for the past 3-4 weeks…..can’t trust anything anymore….
May 12th, 2022 at 2:32 pm
The Weekly Nasdaq just tagged the 200ema. Last few times it’s done that price has been at or very near a significant price low. I wish I was a believer………………
(Price is still 4100 PTS above its long term uptrendline)
https://stockcharts.com/h-sc/ui?s=%24COMPQ&p=W&yr=20&mn=0&dy=0&id=p30330379621&a=1092908250
May 12th, 2022 at 3:07 pm
No shortage of bottom prediction prognostications. It seems to be in the 3,600-3800 range for the SP500. We are close. Leveraged positions have been forced to exit. Price has been declining due to need to liquidate rather than decisions made on fundamentals. We are therefore seeing price declines below fair value. Once this ends the sellers will be exhausted and the buyers will come in. You have to have a longer term perspective now. The world is not ending on the stock market unless Putin decides to go for a full on nuclear war (probably not).
May 12th, 2022 at 7:02 pm
For those that like to humour themselves so they can sleep at night here is a “LOG SCALE” Monthly chart of the $COMPQ to track that “appears” to have had just a minor pullback within a strong bull market. Makes your financial life much easier to deal with as long as you don’t look at your individual stock prices!
https://stockcharts.com/h-sc/ui?s=%24COMPQ&p=M&yr=20&mn=0&dy=0&id=p66417227121&a=1163777625
May 12th, 2022 at 9:44 pm
Hi Folks,
That break down below 3900 put the bottom call in jeopardy for now, oh Well 🙁
So unless we break above 4000-4020, we are still looking down into the deep hole of 3700.
Rol Lew,
I don’t touch GBTC at all, it is some type of derivative which doesn’t really work much with Bitcoin.
I used to trade BTC stock on Swedish exchange couple of years ago, if you remember. Now Canada have lots of BTC etf’s and they are also good for TFSA and RRSP.
BTCC and BTCC.B etc at TSX and BITO at NYSE are Bitcoin etfs and there are others too.
I am too chicken little to buy BTC itself and lose the damn password or got hacked and lose money. I rather have some fund etc hold that for me and buy their etf for 1% fees. no problem.
Also these Canadian and US BTC etf have options so I sell cover calls too to make extra $$.
Later
May 12th, 2022 at 9:47 pm
RonBC,
Re-2
I don’t remember seeing that index at 6, ever. that is too bearish. Somewhere around the corner there will be bear steaks coming off the smoker grill soon.
May 13th, 2022 at 1:44 am
Kam
Well tomorrow is Friday the 13th. Perhaps this traditionally negative day will see some surprises on the markets.