Tech Talk for Tuesday April 10th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 28 points in pre-opening trade. Index futures are responding to news that China is willing to negotiate on trade.

U.S. equity index futures were virtually unchanged following release of the March Producer Price Index at 8:30 AM EDT. Consensus was an increase of 0.1% versus a gain of 0.2% in February. Actual was an increase of 0.3%. Excluding food and energy, consensus for the March Producer Price Index was an increase of 0.2% versus a gain of 0.2% in February. Actual was an increase of 0.3%.

The Canadian Dollar added 0.36 to 79.03 cents U.S. after release of Canada's March Housing Starts report. Consensus was 218,000 versus 229,700 in February. Actual was 225,200.

L Brands (LB $38.06) is expected to open lower after MKM Partners lowered their target price to $42 from $48.

Netflix added $1.08 to $296.80 after JP Morgan raised its target price to $328 from $285.

Navistar (NAV $33.51) is expected to open lower after JP Morgan lowered its target price to $38 from $45.

Cummins (CMI $156.50) is expected to open lower after JP Morgan lowered its target price to $164 from $176.

Nvidia gained $7.84 to $223.25 after Morgan Stanley upgraded the stock to Overweight from Equal Weight.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/04/09/stock-market-outlook-for-april-10-2018/

Note seasonality chart on the Baltic Dry Index

Observation

At approximately 2:00 PM EDT yesterday, news that the FBI had raided President Trump's personal lawyer under the guidance of the Special Prosecutor. U.S. equity markets responded accordingly. The S&P 500 Index plunged 40 points thereafter.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Nil. No intermediate breakouts or breakdowns.

Russian ETF $RSX broke below $20.91 and $20.36 following U.S. sanctions.

Corn ETN $CORN moved above $18.17 extending an intermediate uptrend.

Merck $MRK, a Dow Jones Industrial stock moved above $55.85 completing a double bottom pattern on positive news on Keytrada cancer trials.

Monsanto $MON moved above $123.63 on news that the Justice Dept. to allow acquisition by Bayer.

Fairfax Financial $FFH.CA moved above $660.00 setting intermediate uptrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for April 9th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for April 9th 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for April 9th 2018

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards' Blog

What to hold when stocks fall. Following is a link:

http://www.valuetrend.ca/what-to-hold-when-stocks-fall/

S&P 500 Momentum Barometer

The Barometer added 2.60 to 29.20 yesterday. It remains intermediate oversold.

TSX Momentum Barometer

The Barometer added 2.07 to 44.63 yesterday. It remains intermediate neutral.

Disclaimer: Seasonality 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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