Tech Talk for Friday August 2nd 2019

U.S. equity index futures were lower this morning. S&P 500 futures were down 14 points in pre-opening trade.

Index futures were moved lower following release of economic news at 8:30 AM EDT. Consensus for U.S. July Non-farm Payrolls was a drop to 165,000 from 224,000 in June. Actual was a slip to 164,000. Consensus for the July Unemployment Rate was a slip to 3.6% from 3.7% in June. Actual was unchanged at 3.7%. Consensus for July Hourly Earnings was an increase of 0.2% versus a gain of 0.2% in June. Actual was an increase of 0.3% . Consensus for June U.S. Trade Deficit was $54.60 billion versus $55.50 billion in May. Actual was $55.20 billion.

The Canadian Dollar was virtually unchanged at U.S. 75.51 cents following release of the June Canadian Trade Balance report at 8:30 AM EDT. Consensus was a deficit of $400 million versus a surplus of $760,000 in May. Actual was a surplus of $140 million.

Open Text (OTEX $56.23 Cdn). is expected to open higher after reporting higher than consensus second quarter earnings.

Restaurant Brands International (QSR $96.32 Cdn.) is expected to open higher after reporting higher than consensus second quarter earnings.

Exxon Mobil added $1.74 to $74.20 after reporting higher than consensus second quarter earnings.

Air Canada (AC $44.98) is expected to open lower after JP Morgan downgraded the stock to Neutral from Overweight.

EquityClock's Daily Comment

Following is a link:

http://www.equityclock.com/2019/08/01/stock-market-outlook-for-august-2-2019/

Note seasonality charts on 10 year Treasury Note futures, Gold futures and U.S. Construction Spending.

Observations

The 1:00 PM EDT Trump tweet about additional tariffs on China effective September 1st flipped equity prices from positive to negative.

U.S. equity indices plunged:

Commodity prices other than gold virtually collapsed.

Crude oil and energy prices moved sharply lower. Crude oil recorded the largest one day drop in four years.

Oil service stocks and related ETFs were particularly hard hit.

The VIX Index spiked

Gold prices responded to the spike in VIX.

StockTwits released yesterday @EquityClock

Bombardier $BBD.B.CA, a TSX 60 stock moved below $1.96 extending an intermediate downtrend.

Teck Resources $TECK.B.CA $TECK , a TSX 60 stock moved below $26.15 Cdn. and $19.37 U.S. extending an intermediate downtrend.

BMO Global Base Metals ETF $XBM.CA moved below $10.87 extending an intermediate downtrend.

Total Construction Spending in the US up 2.6% (NSA) in June, weaker than the average increase for the month of 6.8%. $MACRO #Economy

Activision Blizzard $ATVI, a NASDAQ 100 stock moved above $49.83 completing a long term base building pattern.

Long term Treasury iShares moved above $134.29 extending an intermediate uptrend.

7-10 year Treasury iShares $IEF moved above $110.40 extending an intermediate uptrend.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for August 1st 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for August 1st 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for August 1st 2019

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer plunged 13.00 to 55.00 yesterday. It changed from intermediate overbought to intermediate neutral on a move below 60.00 and is now trending down.

TSX Momentum Barometer

The Barometer dropped 4.14 to 57.33 yesterday. It changed from intermediate overbought to intermediate neutral on a move below 60.00 and has turned down.

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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