Tech Talk for Tuesday June 14th 2022

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Pre-opening Comments for Tuesday June 14th

U.S. equity index futures were higher this morning. S&P 500 futures advanced 20 points in pre-opening trade.

Index futures moved slightly higher following release of the May Producer Price Index at 8:30 AM EDT. PPI was expected to increase 0.8% versus a gain of 0.5% in April. Actual was an increase of 0.8%. On a year-over-year basis, May Producer Price Index was expected to increase 10.9% versus a gain of 11.0% in April. Actual was an increase of 10.8%. Excluding food and energy, May Producer Price Index was expected to increase 0.6% versus a gain of 0.4% in April. Actual was an increase of 0.5%. On a year-over-year basis excluding food and energy, May Producer Price Index was expected to increase 8.6% versus a gain of 8.8% in April. Actual was an increase of 8.3%.

Oracle advanced $5.95 to $70.00 after reporting higher than consensus fourth quarter revenues and earnings. JP Morgan raised its target price from $82 to $100.

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Eli Lilly was unchanged at $291.28 after the FDA approved its Olumiant oral tablets.

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US Steel slipped $0.01 to $20.23 after JP Morgan lowered its target price from $34 to 28.

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EquityClock’s Daily Comment

Headline reads “While the charts appear outright horrific, this is not the time to become more negative in investment portfolios as sentiment reaches another bearish extreme “. Following is the link:

http://www.equityclock.com/2022/06/13/stock-market-outlook-for-june-14-2022/

 

Canadian Association for Technical Analysis Presentation

Next presentation for members is offered at 8:00 PM EDT tonight. Presenter is Rick Bensigner.

Interested in membership?

Contact Us – Canadian Association for Technical Analysis (canadianata.ca)

 

Technical Notes for yesterday

S&P 100 and NASDAQ 100 stocks breaking intermediate support yesterday included:

CPRT, GM, F, TGT, MNST, BAC, BK,C, COF, MS, MET, ABBV, ALGN, MRNA, BMY, HON, UNP, AAPL, AMAT, ASML, ADSK, EBAY, FISV, MCHP, MSFT, MRVL, META, ORCL, MELI, SWKS, SIRI, DD, EXC, SO,

ETFs breaking intermediate support yesterday included:

TLT, IEV, SPY, RSP, DIA, QQQ, MDY, XLK, XLB, XLF, XLI, XLV, XLU, EWU, EWY, EWG, EWI, EWA, EFA, EIS, EPP, PIN, VNM, IHF, KBE, KRE, IAI, IAK, IHI, BBH, PPH, IYT, IYZ, XHB, WOOD, SMH, SOXX, PHO, PALL JETS, COW.TO, XRE.TO

TSX 60 stocks breaking intermediate support included:

BMO, CM, TD, CNR, BCE, CP, T, GIB, CSU, QSR, WN, SHOP and GIL.

 

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for June 13th 2022

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for June 13th 2022

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for June 13th 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 offered by valued providers

Erin Swenlin says “This ETF Is Weathering The Storm”.

This ETF Is Weathering The Storm | Erin Swenlin | Your Daily Five (06.13.22) – YouTube

 

S&P 500 Momentum Barometers

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The intermediate term Barometer plunged 7.60 to 4.60 yesterday, the lowest level since March 2020 when the COVID 19 panic in equity markets reached its peak. It remains Oversold. Trend is down and has yet to show signs of a bottom.

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The long term Barometer dropped 6.00 to 19.40 yesterday, the lowest level since April 2020. It remains Oversold. Trend is down and has yet to show sign of a bottom.

 

TSX Momentum Barometers

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The intermediate term Barometer dropped 10.68 to 18.41 yesterday. It remains Oversold. Short term trend is down.

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The long term Barometer dropped 7.18 to 30.54 yesterday. It remains Oversold. Short term 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.




8 Responses to “Tech Talk for Tuesday June 14th 2022”

  1. RonBC Says:

    The Dow is getting close to significant price support of 29600 and the Weekly 200ema near 30000. With such extreme oversold readings in many oscellators and sentiment a “bounce” should not be far away. The financial media should be able to come up with some b.s. story like they always do.

    https://stockcharts.com/h-sc/ui?s=%24INDU&p=W&yr=5&mn=0&dy=0&id=p80438404962&a=673066175

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=W&yr=20&mn=0&dy=0&id=p40726079194&a=673066405

  2. Paula Says:

    Ron/BC,

    Fed meeting tomorrow could provide the excuse for a relief bounce.

  3. RonBC Says:

    Paula
    Well the financial media has been hyping up the “POSSIBLE” .75 rate hike or higher so when we get a .50 hike they’ll cheer and the market will rally for the “less than expected” jump up. I really hate being humored. I’d like rates to jump up sky high so I can put my TFSA or RRIF cash in a GIC that pays 10% or better. I recall 1980-81 when you could get up to 20% interest on cash. Now everyone has been babied with dirt cheap rates and are crying if rates go up a little. Some claim that they will lose their home. Should have thought about that before getting deep in debt. So there may be some good deals on houses and condos down the road. Unfortunately it will take a lot of hikes to drop prices down to bargain levels. I’m in no shape to move again any time soon anyways, lol.

    I see Gold got it’s butt kicked again but XGD.to is still hanging onto its uptrendline support. I’m tempted to buy it there. This entire selloff is very very overdone and as you suggested tomorrow’s “better than expected” rate hike should kick start some short covering and a descent rally. So say it, RAH,RAH,RAH,lol………………………..

    https://stockcharts.com/h-sc/ui?s=XGD.TO&p=D&yr=1&mn=0&dy=0&id=p04695087981&a=673066137

  4. Paula Says:

    Ron/BC
    The event of the Fed rate announcement has become a sporting event, like the Superbowl and everyone is placing their bets. The only important thing is how the market reacts.

    I remember feeling lucky to get a 10% mortgage and a few years later getting a GIC that paid ~ 15% – sure, sign me up. But I don’t think the economy, especially the housing market could stand it now. Maybe we will get a prolonged downturn in housing, which would provide an opportunity for young people to get into the market that they have been priced out for the last decade, at least. Speaking of which, have you seen the decline in the REITs? Here is a weekly of the ZRE.TO fast approaching the 200EMA possible support. Note the yield at 4.76%. But if the $TSX is still going down, this will as well, in fact it is probably one of the sectors leading the $TSX down as seen by the relative to XIU.TO chart below. Maybe watch this for a good opportunity to get into some real estate without doing any heavy lifting. LOL

    https://schrts.co/YcffVPXY

    Good luck on your XGD.TO trade if you take it.

  5. RonBC Says:

    Paula
    Thanks for the chart etc. Here is a Daily chart of ZRE.to with a ratio chart above of ZRE:XRE.to. Both are in trouble. Should be support around $21. But with anything tracking real estate don’t expect a return to glory days as I’ve found it’s got to get slaughtered first for a long while along with over extended buyers. Then after some time it starts to come back with the bank’s help. But after a major selloff people are not eager to go into debt for a home as they aren’t convinced the sell off is over and still have a bad taste in their mouth. I recall prices on homes topped out in Victoria B.C. in 1981 and fell until a rebound began again slowly in 1984. So not sure I’d like to trade this ETF. I’m not that impressed with anything presently. A bear market takes a lot from most everyone. But I am sure we’ll see a bullish tone on the markets tomorrow after the Fed rate announcement that all the big shots say is way less than expected and the market should rally. Once upon a time I used to trade those speculative moves. I try to conserve my money now and don’t like to get too cute with the markets.

    https://stockcharts.com/h-sc/ui?s=ZRE.TO&p=D&yr=3&mn=0&dy=0&id=p21666095227&a=1089128977

  6. David Says:

    #3, RonBC and Paula, thank you both for your thoughts. I came to ask that exact question…if the fed increases only by .50 rather than .75, what would happen. Because the market right now, as i understand, has built into anticipating a .75 basis point.

    Thank you

  7. RonBC Says:

    David

    Just keep in mind nothing is guaranteed or cast in stone. But when watching for extreme sentiment it tends to be best to expect the opposite of what’s expected. The only question is “are we there yet”.

  8. David Says:

    RonBC

    Yes it seems that way. Maybe the fed on purpose leaked out .75 but may only do .50 as they don’t like ro surprise the market. And as sentiment is low and the markets are way over sold it may be a way to get it to rally. But inflation is way up so this rally will last for a bit but i don’t think we’re there yet.

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