Pre-opening Comments for Thursday June 13th
U.S. equity index futures were higher this morning. S&P 500 futures were up 24 points at 8:35 AM EDT
S&P 500 futures added 10 points following release of the May Producer Price Index at 8:30 AM EDT Consensus was an increase of 0.2% versus a gain of 0.5% in April. Actual was down 0.2%. On a year-over-year basis, consensus was an increase of 2.2% versus a gain of 2.3% in April. Actual was 2.2%. Excluding food and energy, May PPI was expected to increase 0.3% versus a gain of 0.5% in April. Actual was unchanged. On a year-over-year basis core May PPI was expected to increase 2.3% versus a gain of 2.4% in April. Actual was an increase of 2.3%.
Broadcom advanced $184.49 to $1,680.00 after reporting higher than consensus second quarter revenues and earnings. The company also announced a ten for one stock split.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0011-4.png "clip_image001[1]")
Dave and Busters dropped $4.50 to $45.85 after reporting less than consensus first quarter results.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0021-6.png "clip_image002[1]")
GE Aerospace added $0.11 to $161.16 after receiving a $1.1 billion U.S. Army contract for turbine engines.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0031-4.png "clip_image003[1]")
Korn Ferry gained $2.49 to $65.90 after reporting higher than consensus quarterly profits.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0041-4.png "clip_image004[1]")
Equity Clock – Market Outlook for June 13, 2024
The need to tailor portfolios towards those groups that have pricing power and are not feeling the push-back from a more discerning consumer is more important now than it has been in a long time.
See: https://equityclock.com/2024/06/12/stock-market-outlook-for-june-13-2024/
Responses to the FOMC Interest Rate Decision
The FOMC at 2:00 PM EDT maintained its Fed Fund Rate at 5.25%-5.50%. Responses by key markets were as follows:
S&P 500 Index moved slightly lower
U.S. Dollar Index ETN moved slightly higher
Yield on 10 year Treasury Notes increased slightly
Regional Bank SPDRs moved lower
Canadian Dollar moved lower
Gold ETN moved lower
Technical Notes
Consumer Discretionary SPDRs $XLY moved above $180.28 setting an intermediate uptrend.
Microsoft $MSFT a Dow Jones Industrial Average stock moved above $433.60 to an all-time high.
Alphabet $GOOG a NASDAQ 100 stock moved above 179.75 to an all-time high extending an intermediate uptrend.
Lam Research $LRCX a NASDAQ 100 stock moved above $1,005.23 to an all-time high extending an intermediate uptrend.
Oracle $ORCL an S&P 100 stock moved above $132.35 to an all-time high extending an intermediate uptrend.
ASML $ASML a NASDAQ 100 stock moved above $1,054.12 to an all-time high extending an intermediate uptrend.
National Bank $NA.TO a TSX 60 stock moved below Cdn$112.86 and Cdn$109.67 setting an intermediate downtrend. It has offered to acquire Canadian Western Bank in a deal valued at $5 billion.
Link offered by a valued provider
5 Simple and Powerful Uses for Moving Averages: Joe Rabil
5 Simple and Powerful Uses for Moving Averages – YouTube
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for June 12th 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 12th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for June 12th 2024
Green: Increase from previous day
Red: Decrease from previous day
S&P 500 Momentum Barometers
The intermediate term Barometer added 3.20 to 48.60. It remains Neutral.
The long term Barometer added 1.00 to 69.00. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer added 3.15 to 49.10. It remains Neutral.
The long term Barometer added 3.15 to 66.67. 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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June 13th, 2024 at 11:23 am
Larry/ON
I am pleasantly surprised at Danielle smith reaction. It is going against character. I hold CWB shares. I am happy with the announced takeover.
June 13th, 2024 at 11:56 am
Dave/AB – Everyone who holds CWB hit a bit of a jackpot. I looked at the stock a while ago but it went off my radar.
AVGO – Great earnings report. After NVDA it’s my number two pick in semis.
MU – Another one performing well.
AMD – Anyone who thought it would do well as a competitor to NVDA has been disappointed of late. When you are getting down around your 200day MA when the sector is shooting the lights out there is something definitely wrong.
June 13th, 2024 at 2:40 pm
Energy – I have felt the pain as I hung onto some CNQ I thought of as long-term holdings. IMO there are a few things going on here. First, companies like CNQ, SU, etc are making gobs of money but like the old Shingles vaccine commercial says “The market doesn’t care.” It’s really frustrating. I made the point earlier that the AI rush has investors “top grading” by cutting weaker performing positions to add to the stronger ones (add financials in that category). The money to buy semis, AAPL, etc has to come from somewhere. This will stop at some point and maybe we get a small correction in AI related stocks and the now fundamentally “cheap” stocks see a reversal. The energy sector is flirting with 200 day MAs : see XOP and XLE today. IMO this would be the worst time to throw in the towel. CNQ has a buy back program and hopefully the smart ones there are hoovering up shares now. I have noticed also a push in US financial media on the idea that energy is at an attractive buy point.