Pre-opening Comments for Tuesday July 5th
U.S. equity index futures were lower this morning. S&P 500 futures were down 41 points in pre-opening trade.
Alphabet $GOOG slipped $19.75 to $2,155.00 after Moness lowered its target price from $3,500 to $2,900.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/07/clip_image0011-1.png "clip_image001[1]")
Shopify slipped $0.42 to US$30.99 after Truist lowered its target price from $45 to $35.
General Motors dropped $0.54 to $31.65 after JP Morgan lowered its target price from $71 to $64.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/07/clip_image0031-1.png "clip_image003[1]")
Kohl’s eased $0.23 to $28.45 after Deutsche Bank lowered its target price from $68 to $37.
EquityClock’s Daily Comment
Headline reads “S&P 500 Index caps off the worst first half of the year performance since 1970, but, historically, bear-market declines during the first half have warranted buying”. Following is a link:
http://www.equityclock.com/2022/06/30/stock-market-outlook-for-july-5-2022/
Technical Notes for yesterday
Quiet day for the TSX yesterday! More technical evidence of an intermediate low appeared: Short term momentum indicators (daily MACD and RSI) continued to recover from Oversold levels. Percent of TSX stocks trading above their 50 and 200 day moving averages continued to improve from Oversold levels.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 4th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for July 4th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July 4th 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)
TSX Momentum Barometers
The intermediate term Barometer added another 5.44 to 17.99 yesterday. The recovery from Extremely Oversold levels continues.
The long term Barometer added another 2.93 to 26.78 yesterday. The recovery from Oversold levels continues.
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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July 5th, 2022 at 4:12 pm
I heard talk of GIC’s on BNN today – can get a 1 year for over 4%:
https://www.ratehub.ca/gics/best-gic-rates
On the other end of the risk spectrum, SMH made a new 52 week + low but closed higher, bouncing off the 200 week EMA. Maybe bounce up to the descending 20EMA ~ 233, which would be a good trade.
https://schrts.co/dJbmqwwH
July 5th, 2022 at 4:32 pm
Fishfat and Ron/BC
Update on XBI: price has continued up to the now turning up 20EMA on the weekly chart. So far, so good.
https://schrts.co/chibjpgK
July 5th, 2022 at 7:41 pm
Paula
Here is a one year chart of XBI. Nice bounce back plus price has cleared the Nov/21 to April/22 downtrendline along with clearing $73.21 resistance. Price is now bumping resistance at the March low of 81.07. The 20ema is about to cross above the 50ema soon as well and the oscillators are now bullish. Big improvement!!!! I’d like to see price pullback to 73.21 for a buy myself.
https://stockcharts.com/h-sc/ui?s=XBI&p=D&yr=1&mn=0&dy=0&id=p44873616075&listNum=1&a=1135770489
July 5th, 2022 at 8:26 pm
Ron/BC,
Thanks for posting the daily chart on XBI. I agree that there has been a big improvement on this etf, including outperforming SPY. On the daily you show how it is facing some resistance at the March low at 81.07, so could see some consolidation. If it were to pull back to 73.21, the chart would not look as bullish but that could happen on a bad market day. If it can breakout over 81 on a large move on large volume, then could test the next level ~ 89 – 90.
July 6th, 2022 at 1:11 am
Paula
Yes a breakout over 81 would continue the momentum and likely run up to 90 but it has already bounced about $8-$9 and momentum indicators are stretched somewhat. I just thought a likely scenario would be a pullback to about $74 or even $77 and then a slingshot move up and through $81 to $90 in short order. This chart is deceptive as the dollar moves are large unlike a lot of stocks.
https://stockcharts.com/h-sc/ui?s=XBI&p=D&yr=1&mn=0&dy=0&id=p09576206911&a=1135770489