Pre-opening Comments for Wednesday August 2nd
Equity index futures were lower this morning. S&P 500 futures were down 26 points at 8:30 AM EDT.
Index futures moved lower overnight after Fitch downgraded the U.S. long term credit rating from AAA to AA+
Advanced Micro Devices gained $4.97 to $122.57 after reporting higher than consensus quarterly results.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/08/clip_image0011-1.png "clip_image001[1]")
Mosaic slipped $0.23 to $40.00 after reporting lower quarterly revenues and earnings.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/08/clip_image0021-1.png "clip_image002[1]")
Electronic Arts dropped $4.62 to $131.50 after the company forecast lower than consensus second quarter revenues.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/08/clip_image0031-1.png "clip_image003[1]")
Match advanced $5.01 to $51.16 after second quarter revenues exceeded consensus.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/08/clip_image0041-1.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “Consumer discretionary looking particularly vulnerable in the short-term as the growth trade that has flourished this year takes a pause”.
http://www.equityclock.com/2023/08/01/stock-market-outlook-for-august-2-2023/
Technical Notes
20 year+ Treasury Bond iShares $TLT moved below $98.58 extending an intermediate downtrend. Conversely, 20+ ultrashort Treasury ETF $TBT moved above $32.00 resuming an intermediate uptrend. Units are responding to strength in the U.S. Dollar.
The Canadian Dollar moved lower in response to strength in the U.S. Dollar Index and rising U.S. long term rates.
Telus $T.TO a TSX 60 stock moved below $23.28 extending an intermediate uptrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for August 1st 2023
Green: Increase from previous day
Red: Decrease from previous day
Source for all positive seasonality ratings: www.EquityClock.com
Commodities
Daily Seasonal/Technical Commodities Trends for August 1st 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for August 1st 2023
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Breaking Down the Heavy Earnings Week | The Final Bar (07.31.23)
https://www.youtube.com/watch?v=zWf5n3wechc
Small Caps Clear Key Resistance | Trading Places (08.01.23)
https://www.youtube.com/watch?v=pOavj_XAVjc
Industrials & Tech Headed to Uncharted Territory | Julius de Kempenaer | Sector Spotlight (08.01.23)
https://www.youtube.com/watch?v=_Ush3Ws1Ebg
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 2.20 to 79.60. It remains Overbought. Daily down trend was extended.
The long term Barometer dropped 2.00 to 72.00. It remains Overbought. Daily down trend was extended.
TSX Momentum Barometers
The intermediate term Barometer dropped 6.14 to 64.91. It remains Overbought.
The long term Barometer dropped 6.14 to 57.98. It changed from Overbought to Neutral on a drop below 60.00. Daily down trend was extended.
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 2nd, 2023 at 9:15 am
What is with companies losing all of their earnings due to mark to market hedges? Who’s doing the hedging? It happened in Q2 2022 to TOU and now it happened to CCO. CCO went from 0.15 per share earnings to -0.1 loss purely due to mark to market hedging. I think TOU has good management and also benefited from hedging in other quarters but you really have to go through their quarterly reports to know what these people are up to because you can be faced with them pulling a great big lemon out of the hat on the next earnings release. I got a chuckle from the CEO of BIR who said “the road to Hell is paved with hedging.” I suspect that the market will not hold this against CCO and regard it as a blip. The copper producers are a better space to invest in.
August 2nd, 2023 at 11:49 am
CCO – I suspected wrong.