Pre-opening Comments for Thursday June 6th
U.S. equity index futures were lower this morning. S&P 500 futures were down 3 points at 8:35 AM EDT.
European Central Bank updated its Overnight Lending Rate for major banks at 8:15 AM EDT Consensus was a reduction from 4.50% to 4.25%. Actual was a reduction to 4.25%.
April U.S. Trade Report was announced at 8:30 AM EDT. Consensus was a deficit of $76.5 billion versus a deficit of $69.40 billion in March. Actual was a deficit of $74.6 billion.
Canada’s major banks have lowered their prime lending rates by 0.25%, matching the drop in the Bank of Canada’s lending rate to 4.75% announced yesterday.
Lululemon advanced $30.73 to $339.00 after reporting higher than consensus first quarter revenues and earnings. The company also announced a $billion share buyback program.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0011-2.png "clip_image001[1]")
Five Below dropped $23.00 to $109.79 after the company cut its full year sales forecast.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0021-3.png "clip_image002[1]")
Smartsheet gained $4.54 to $42.32 after reporting higher than consensus first quarter revenues and earnings.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0031-2.png "clip_image003[1]")
EquityClock’s Stock Market Outlook for June 6th 2024
The Computer Hardware industry is breaking out of a prolonged trading range, re-adding breadth to the growth/technology sector.
See: https://equityclock.com/2024/06/05/stock-market-outlook-for-june-6-2024/
Technical Notes
S&P 500 Index and its related ETF $SPY advanced to at an all-time daily and closing high. Strength was led by the technology sector.
NASDAQ 100 Index and its related ETF $QQQ advanced to an all-time daily and closing high.
Strength was led by the technology sector.
Europe iShares $IEV moved above $58.09 to an all-time high extending an intermediate uptrend.
Biogen $BIIB a NASDAQ 100 stock moved above $236.90 completing a reverse Head & Shoulders pattern.
Honeywell $HON a Dow Jones Industrial Average stock moved above $208.35 extending an intermediate uptrend.
US Bancorp $USB an S&P 100 stock moved below $38.79 and $38.34 completing a Head & Shoulders pattern.
Vale $VALE one of the world’s largest base metals producers and largest Brazilian stock listed in New York moved below $11.52 setting an intermediate downtrend. Brazil iShares $EWZ also broke support extending an intermediate downtrend.
BCE $BCE.TO a TSX 60 stock moved above Cdn$47.20 completing a reverse Head & Shoulders pattern
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for June 5th 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 June 5th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for June 5th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Start of a Market Correction or a Summer Rally? Mish Schneider
Start of a Market Correction or a Summer Rally? – YouTube
The Wisdom of Price & Volume: Carter Worth and Ed Coyne
The Wisdom of Price & Volume (sprott.com)
Live Trade Ideas & Market Analysis: $SPX, $TLT, $NVDA: Guy Adami and Liz Young
Live Trade Ideas & Market Analysis: $SPX, $TLT, $NVDA – YouTube
Chart of the Day
Nice breakout by Biogen! See chart above. The stock and the biotech sector have a history of recording exceptional gains on a real and relative basis (relative to the S&P 500 Index) between May 10 and September 15th. History is repeating this year. Ways to trade in the sector include IBB, BBH, FBT and XBI.
EquityClock Seasonal Chart Analysis
Analysis of the VanEck Vectors Biotech ETF (NASD:BBH) seasonal charts above shows that a Buy Date of May 10 and a Sell Date of September 15 has resulted in a geometric average return of 5.56% above the benchmark rate of the S&P 500 Total Return Index over the past 20 years. This seasonal timeframe has shown positive results compared to the benchmark in 16 of those periods. This is a very good rate of success and the return strongly outperforms the relative buy-and-hold performance of the stock over the past 20 years by an average of 3.24% per year.
S&P 500 Momentum Barometers
The intermediate term Barometer added 1.80 to 49.00. It remains Neutral.
The long term Barometer slipped 0.20 to 70.80. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer advanced 8.97 to 55.14. It remains Neutral.
The long term Barometer added 2.69 to 69.96. 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
|
|
June 6th, 2024 at 9:03 am
NVDA – To continue with my “irresponsibility” here is Jim Cramer from last night. For full disclosure my daughter works for a major data analytics and AI company and will be at the AI conference in San Francisco next week. She referred me to NVDA a year ago. I will take a breather on this topic going forward.
https://www.youtube.com/watch?v=RKDpoIfVZVE
June 6th, 2024 at 11:40 am
#1
As always “WINNERS HAVE LONG MEMORIES. LOSERS HAVE SHORT MEMORIES.” That has not and never will change…………
June 6th, 2024 at 1:30 pm
RON/BC I think you took advantage of my very last sentence but I will stick to what I said. I don’t take any of this too seriously and hopefully you don’t either. We have completely different investing personas. The only thing I would further stress is that if you don’t thoroughly understand what it is you are invested in you are prone to panic selling and the market always wants to shake you out of your good stocks. “The hardest thing in a bull market is to stick with your winners.”
June 6th, 2024 at 2:54 pm
Larry/ON
Yes, everyone has their own investment strategies. I’ve known several brokers here and in the U.S. when I used to trade a lot and learned not to let your portfolio plunge without a stop loss in place as you can always buy in again when prices stabilize without riding them down. I learned this the hard way long ago so that is my strategy. Like I was told it’s not a marriage. The stop loss is no different than insurance to protect you for sudden changes against you. But to each his own so sorry if I offended you. I just have learned to protect my finances every way I can to survive sudden and unexpected event.