Pre-opening Comments for Wednesday February 7th
U.S. equity index futures were higher this morning. S&P 500 futures were up 14 points at 8:35 AM EST
Index futures were unchanged following release of the December U.S. Trade Report at 8:30 AM EST. Consensus was a deficit of $62.20 billion versus a downwardly revised deficit of $61.9 in November. Actual was a deficit of $62.20 billion
Ford gained $0.93 to $13.00 after reporting higher than consensus fourth quarter revenues and earnings.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/02/clip_image0011-1.png "clip_image001[1]")
Snap dropped $3.45 to $14.00 after reporting less than consensus fourth quarter revenues.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/02/clip_image0021-1.png "clip_image002[1]")
Chipotle gained $37.26 to $2,525.000 after reporting higher than consensus fourth quarter revenues.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/02/clip_image0031-1.png "clip_image003[1]")
VF Corp dropped $0.75 to $16.20 after reporting less than consensus fourth quarter revenues and earnings.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/02/clip_image0041-1.png "clip_image004[1]")
Technical Notes
Transportation iShares $IYT moved above $265.89 extending an intermediate uptrend.
Canadian National Railway $CNR.TO a TSX 60 stock moved above Cdn$171.88 extending an intermediate uptrend.
China Large Cap ETF $FXI moved above $23.09 completing a double bottom pattern.
Trip.com $TCOM a NASDAQ 100 stock moved above $39.11 extending an intermediate uptrend.
DocuSign $DOCU a NASDAQ 100 stock moved below $54.24 completing a double top pattern.
Concerns about regional U.S. banks continue to escalate: $NYCB
Bank of Montreal $BMO.TO a TSX 60 stock moved below Cdn$124.04 completing a double top pattern.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for Feb.6th 2024
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 Feb.6th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for Feb.6th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Market Breadth Divergence Says NO BULL! David Keller
https://www.youtube.com/watch?v=FKnYbc-P2iQ
Top Stocks Poised For Selloff? | On The Tape Investing Podcast: Guy Adami
https://www.youtube.com/watch?v=d5dB9hoz6ws
Markets Spooked Despite Strength In Economy: Tom Bowley
Markets Spooked Despite Strength in Economy – YouTube
S&P 500 Momentum Barometers
The Barometer added 4.40 to 63.60. It returned to Overbought on a recovery above 60.00.
The long term Barometer added 2.20 to 71.40. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer added 3.56 to 56.44. It remains Neutral.
The long term Barometer added 2.67 to 59.56. 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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February 7th, 2024 at 11:04 am
Market For 2025 (A Little Alarmism) – I’m going to pose a question of a major risk that has not yet been factored at all into markets. I posted two months before Putin’s invasion of Ukraine that we need to consider that it was coming and would affect markets. I have a background in political science and follow events in Europe and Putin’s statements and expressed motives very closely. We have a major risk that Vladimir Putin will elect to invade the Baltics in early 2025 which would be a “Black Swan” event for markets. This would be more likely to occur should Donald Trump win the election. NATO is unprepared and the Russian economy is now on a permanent war footing. Putin believes that Russia is entitled to reclaim all of the former territories of the Soviet Union and the opportunity for him to do so will disappear if he does not act in 2025. NATO is trying to rebuild to counter the threat but it will take several years to do so.
February 7th, 2024 at 3:31 pm
Larry/ON, since you follow political events, I wonder if you have heard of Ian Bremmer. He is considered an authority on the subject. Here is a link to an interview from around a year ago, so out of date but perhaps still of interest.
https://hbr.org/2023/01/eurasia-groups-ian-bremmer-biggest-threat-to-world-is-rogue-actors-from-putin-to-musk
February 7th, 2024 at 6:32 pm
Paula
I’ve always paid close attention to boom times and recessions as it’s a time to make money easily or hunker down and be cautious. One doesn’t want to be wrong on the major direction of things. Right now in Greater Victoria,B.C the population is about 400,000 and busy. BUTTTTTTTTTTTTTTTT, what concerns me is in one of the two busiest shopping centers Starbucks recently closed. And in the other busiest shopping center Tim Hortons also closed. That is not a good sign and worth paying attention to. So while everything looks the same and healthy it reminds me of a price chart line rolling over to down. Not bullish for sure.
February 7th, 2024 at 6:38 pm
re#3:
hi Ron,
Here in Lethbridge we had a Starbucks inside our Chapters store. No longer! The chapters employees (the peons anyway) came to work Mon. am and Starbucks was gone, they had no clue it was going to pull-out.
Bernie
February 7th, 2024 at 9:13 pm
STILL_Learning
Well I’ve also seen a variety of businesses close the doors with no notice in busy locations. One gets the feeling that things are going to get worse before they get better. No sense having your head up your butt looking for bullish stories to sleep better.l