Pre-opening Comments for Tuesday August 23rd
U.S. equity index futures were higher this morning. S&P 500 futures advanced 2 points in pre-opening trade.
Palo Alto Networks $PANW gained $43.85 to $552.00 after the company reported higher than consensus fiscal fourth quarter revenues and earnings. The company also announced a three for one stock split. Stifel raised its target price from $600 to $645.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/08/clip_image0011-12.png "clip_image001[1]")
Zoom $ZM dropped $6.64 to $88.74 after the company lowered revenue and earnings estimates. Stifel lowered its target price from $120 to $90.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/08/clip_image0021-14.png "clip_image002[1]")
Bank of Nova Scotia added $1.72 to Cdn$82.50 after reporting higher than consensus fiscal third quarter earnings.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/08/clip_image0031-11.png "clip_image003[1]")
Macy’s added $0.39 to $19.00 after reporting higher than consensus second quarter earnings.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2022/08/clip_image0041-11.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “After today’s session, you may need a drink and this industry that we just upgraded will cater to your need”. Following is the link:
http://www.equityclock.com/2022/08/22/stock-market-outlook-for-august-23-2022/
Technical Notes for yesterday
U.S. Dollar Index ETN $UUP closed at an all-time closing high at $29.17
Natural Gas ETN $UNG moved above $32.77 extending an intermediate uptrend
Wheaton Precious Metals $WPM a TSX 60 stock moved below US$31.56 extending an intermediate downtrend.
Match $MTCH a NASDAQ 100 stock moved below $59.15 extending an intermediate downtrend.
Berkshire Hathaway $BRK.B an S&P 100 stock moved below intermediate support at 290.42.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for August 22nd 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for August 22nd 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for August 22nd 2021
Green: Increase from previous day
Red: Decrease from previous day
Link offered by valued provider
RBC’s Calvasina: Stock rally can continue in very short term
https://www.youtube.com/watch?v=yDfFB41YLXM
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 10.00 to 78.20 yesterday. It remains Overbought. Trend is down.
The long term Barometer dropped 7.20 to 37.80 yesterday. It changed from Neutral to Oversold after dropping below 40.00. Trend is down.
TSX Momentum Barometers
The intermediate term Barometer slipped 1.26 to 66.81 yesterday. It remains Overbought.
The long term Barometer dropped 2.94 to 39.92 yesterday. It changed from Neutral to Oversold on a drop below 40.00. Trend is down.
Disclaimer: Seasonality ratings 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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August 23rd, 2022 at 10:45 am
SPX – Absence of sellers. Short interest in SPX futures has been the highest since the pandemic bottom in March 2020 and you have to go back to 2015 to find a similar crowding on the short side. The technical resistance at 4300 was apparent to the marketplace and we have had a pull back. Any positive news is going to put money to work in this market and the risk continues to be on the upside.
Energy – OPEC drew a line in the sand at $90. The Saudi oil minister mused about production cuts and mentioned what others have been talking about which was the disconnect between the tight supply/demand reality and what until recently was the opposite direction in futures. Traders were trying to price in economic armageddon. The shorts are now being blow out of the water and backwardation is starting to reduce.
August 23rd, 2022 at 1:06 pm
Double Top in the U.S.$. Double tops can be difficult to clear and hold above. But the chart is still bullish………….
https://stockcharts.com/h-sc/ui?s=%24USD&p=D&yr=2&mn=0&dy=0&id=p51505057350&a=792462312
August 23rd, 2022 at 4:31 pm
Ron/BC
Maybe the USD is going to highs of 2001, before it tops.
August 23rd, 2022 at 4:51 pm
David
Re:#4
That wouldn’t surprise me as the U.S.$ is the world’s reserve currency. And the Euro doesn’t look like it can hold its own anymore. But those things tend to take time unless there is some catastrophic event in its favour that speeds it along. 121 is the first hurdle to cross and the recent breakout over 103 also needs to hold. Lots of factors to deal with. But as long as the U.S.$ remains strong precious metals “should” do well.
https://stockcharts.com/h-sc/ui?s=%24USD&p=W&st=1980-01-04&id=p59161196705&a=1158185444
August 23rd, 2022 at 7:51 pm
David
Re:#4
I should have commented that as long as the U.S.$ remains strong preciously metals should not do well. Plus the seasonal trend on them is very bearish right though September. But looking at the technicals on precious metals and the U.S.$ it looks like on the short term the U.S.$ is stretched out and at resistance and most likely will pullback. And the technicals on precious nmetals are more bullish than they have been for some time. So if I had a gun to my head I’d buy XGD.to or GDX or a favourite Gold stock. But I don’t have a gun to my head so I’ll wait for a more bullish chart.
August 23rd, 2022 at 8:53 pm
Here is another precious metal stock with lots of potential.
https://stockcharts.com/h-sc/ui?s=AEM.TO&p=D&yr=2&mn=0&dy=0&id=p59259098070&a=838380632
August 23rd, 2022 at 9:30 pm
Ron/BC
Nice charts and thanks for them. If inflation keeps running hot, it may not take too long for it to hit 120. Lets hope that the fed is right and inflation is coming down and there is no recession. Lol.
August 23rd, 2022 at 10:40 pm
David
The 2 yr rate is well above the 10 yr rate and that has a pretty good record of projecting a recession ahead. We’ve had the big housing boom with record sales & record prices plus a bull market in stocks so what tends to be next is a hard landing recession where everyone is heavily in debt with low interest rates on high prices and now the rates are starting to jack back up. Nothing ever changes as it’s always been that way and always will be. Expect major bankruptcies and job loses etc. I personally have never found a year ending in 2 or 3 to be a good one. But I’m ready for just about anything and am not worried about it.
“The 10-2 Treasury Yield Spread is the difference between the 10 year treasury rate and the 2 year treasury rate. A 10-2 treasury spread that approaches 0 signifies a “flattening” yield curve. A negative 10-2 yield spread has historically been viewed as a precursor to a recessionary period.”