Pre-opening Comments for Thursday April 11th
U.S. equity index futures were lower this morning. S&P 500 futures were down 4 points at 8:35 AM EDT.
S&P 500 futures recovered 25 points following release of the March U.S. Producer Price Index at 8:30 AM EDT. Consensus was an increase of 0.3% versus a gain of 0.6% in February. Actual was an increase of 0.2%. On a year-over-year basis consensus was an increase of 2.3% versus a gain of 1.6% in February. Actual was an increase of 2.1%. Excluding food and energy, consensus for the March PPI was an increase of 0.2% versus a gain of 0.3% in February. Actual was an increase of 0.3%. On a year-over-year basis consensus for core PPI was an increase of 2.3% versus a gain of 2.0% in February. Actual was an increase of 2.4%.
Alpine Immune Sciences advanced $17.21 to $64.26 after Vertex Pharmaceutical offered to purchase the company for $65.00 per share cash. Value of the offer is $4.9 billion.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/04/clip_image0011-6.png "clip_image001[1]")
Regeneron dropped $16.20 to $920.00 after the U.S. Justice Department issued a complaint alleging fraudulent drug pricing.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/04/clip_image0021-7.png "clip_image002[1]")
CarMax dropped $6.00 to $73.30 after reporting less than consensus fiscal fourth quarter results.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/04/clip_image0031-5.png "clip_image003[1]")
Technical Notes
The U.S. Dollar Index moved above 104.88 extending an intermediate uptrend.
The Canadian Dollar dropped to a four month low after release of the “hotter than expected” U.S. March CPI and after the Bank of Canada’s decision to maintain its bank lending rate at 5.0%.
Dow Jones Industrial Average SPDRs $DIA broke below intermediate support at $384.00 and moved below its 50 day moving average at $388.28.
Dow Jones Transportation Average iShares $IYT broke below $67.74 and moved below its 50 day moving average at $68.87 completing a double top pattern.
Technology SPDRs XLK broke below support at $204.26 and moved below its 50 day moving average at $205.77.
S&P/TSE Technology iShares $XIT.TO moved below Cdn$52.68 completing a double top pattern.
Cenovus Energy $CVE.TO a TSX 60 stock moved above Cdn$29.85 to a 12 year high extending an intermediate uptrend.
SNC Lavalin $ATRL.TO a TSX 60 stock moved below Cdn$54.02 completing a double top pattern.
Magna International $MG.TO a TSX 60 stock moved below Cdn$70.27 setting an intermediate downtrend.
Power Corp $POW.TO a TSX 60 stock moved below Cdn$36.72 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for April 10th 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 April 10th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for April 10th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Tech Stock Warning: Impact of Rising Rates: Danielle Shay
Tech Stock Warning: Impact of Rising Rates – YouTube
Stocks Sink on Hot Inflation Data: Guy Adami, Dan Nathan and Liz Young
Stocks Sink on Hot Inflation Data – YouTube
‘Squawk on the Street’ crew react to March’s CPI report
‘Squawk on the Street’ crew react to March’s CPI report – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer plunged 14.80 to 60.40. It remains Overbought. Daily trend is down.
The long term Barometer dropped 5.80 to 76.80. It remains Overbought. Daily trend is down.
TSX Momentum Barometers
The intermediate term Barometer plunged 8.93 to 62.95. It remains Overbought.
The long term Barometer dropped 4.91 to 70.88. It remains Overbought.
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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April 11th, 2024 at 9:11 am
Declining CAD – I have been negative on CAD for some time due to the obvious growth difference between Canada and the US. All your US holdings were worth that much more yesterday with the CAD drop. The other thing is that in this environment Canadian companies that primarily export their products that are priced in USD are going to benefit – energy, materials. That’s what you want to hold. It’s not rocket science to figure this out.