Pre-opening Comments for Friday September 1st
U.S. equity index futures were higher this morning. S&P 500 futures advanced 29 points at 8:35 AM EDT
Index futures gained 15 points following release of the U.S. August Employment Report at 8:30 AM EDT. Non-farm Payrolls were expected to increase 170,000 versus a gain of 187,000 in July. Actual was an increase of 187,000 versus a revised gain of 157,000 in July. August Unemployment Rate was expected to remain unchanged from July at 3.5%. Actual was an increase to 3.8%. August Hourly Earnings was expected to increase 0.3% versus a gain of 0.4% in August. Actual was an increase of 0.2%. On a year-over-year basis, August Hourly Earnings were expected to increase 4.4% versus a gain of 4.4% in July. Actual was an increase of 4.3%.
The Canadian Dollar was unchanged at US73.97 cents following release of Canada’s June GDP report at 8:30 AM EDT. Consensus was a drop of 0.2% versus a gain of 0.5% in May. Actual was a decline of 0.2% versus a downwardly revised drop of 0.2% in May.
Lululemon advanced $3.39 to $384.65 after reporting higher than consensus second quarter revenues. The company also offered positive guidance.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/09/clip_image0011.png "clip_image001[1]")
Broadcom dropped $42.38 to $880.51 after offer guidance less than consensus.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/09/clip_image0021.png "clip_image002[1]")
Restaurant Brands International (QSR.TO Cdn$93.85) is expected to open higher after announcing a $1 billion share buyback program.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/09/clip_image0031.png "clip_image003[1]")
Nutanix gained $5.00 to $36.10 after reporting higher than consensus fiscal fourth quarter revenues. The company also offered positive sales guidance.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/09/clip_image0041.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “The S&P 500 Index has fallen by an average of 0.5% in September in what is considered to be the weakest and most volatile month of the year for stocks”.
https://equityclock.com/2023/08/31/stock-market-outlook-for-september-1-2023/
Next Tech Talk Report
Next report is released on Tuesday. Monday is the Labour Day holiday in Canada and the U.S.
Technical Notes
Dollar General $DG a NASDAQ 100 stock moved below $150.74 extending an intermediate downtrend. The stock responded to lower than consensus quarterly results.
Danaher $DHR an S&P 100 company moved above $265.77 extending an intermediate uptrend.
Adobe $ADBE a NASDAQ 100 stock moved above $552.94 extending an intermediate uptrend.
National Bank $NA.TO a TSX 60 stock moved below $94.21 and $94.12 setting an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for August 31st 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 31st 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for August 31st 2023
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
How to Spot the Early Signs Of A Reversal Using the ADX and DI Lines | Stock Talk (08.31.23)
The Final Bar with David Keller, CMT | Guest TG Watkins | 4pm ET, 1pm PT | August 31, 2023
The Final Bar with David Keller, CMT | Guest TG Watkins | 4pm ET, 1pm PT | August 31, 2023 – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer slipped 2.80 to 44.80. It remains Neutral.
The long term Barometer eased 1.60 to 57.00. It remains Neutral.
TSX Momentum Barometers
Intermediate term Barometer dropped 5.73 to 51.98. It remains Neutral.
Long term Barometer slipped 2.20 to 53.74. It remains Neutral.
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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September 1st, 2023 at 9:14 am
Head of Canadian banking at BNS:
“We’re just being more disciplined with regards to customer selection at time of origination, and this is a good time to drive that standard higher here because it’s a softer, slower housing market,” Dan Rees, Scotiabank’s head of Canadian banking, said on a conference call this week. “We are also being more efficient with regards to our use of capital and using customer deselection at renewal as part of that conversation.”
Your mortgage comes up for renewal. You have been making your payments and your bank now says “Sorry but we will not renew. Please pay the sum owing of $765,000.”
We are going through a difficult time with economic growth and consumer spending in Canada. It’s much worse than the US because our mortgage market is completely different from the land where you can lock in a rate for 30 years.
But…Canada is the land of materials and energy which are sold on international markets and the companies that sell those things are not subject to difficulties in the Canadian economy while benefiting from a lower Canadian dollar when Canada slows down.
WTI today cleared the early August high.
September 4th, 2023 at 11:27 am
On Thursday(Aug,31) dvTechTalk mentioned URA (Global X Uranium ETF). I had a looking at the weekly chart and from my perspective it looks particularly strong. However, price on Friday has bumped up against resistance at $24.28. The RSI(8) suggests it is overbought. I don’t hold a position, but, if price were to pullback (say towards the moving averages around $22), it could represent a good entry point opportunity.
https://schrts.co/QpwTkxXY