Tech Talk for Friday December 7th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 6 points in pre-opening trade.

Index futures moved higher following release of the U.S. November Employment Report at 8:30 AM EST. Consensus for November Non-farm Payrolls was 209,000 versus 250,000 in October. Actual was 155,000. Consensus for November Unemployment Rate was an increase to 3.8% from 3.7% in October. Actual was 3.7%. Consensus for November Hourly Earnings was an increase of 0.3% versus a gain of 0.2% in October. Actual was an increase of 0.2%.

The Canadian Dollar advanced 0.42 to U.S.75.14 cents following release of the November Employment Report at 8:30 AM EST. Consensus was an increase of 10,000 versus a gain of 11,200 in October. Actual was an increase of 94,100. Consensus was a drop in the Unemployment Rate to 5.7% from 5.8% in October. Actual was 5.7%.

Crude oil gained 4% after OPEC announced an agreement to reduce their production by 1.2 million barrels per day. Consensus was a reduction of 1.0 million barrels per day.

Cronos Group gained $3.47 to $13.95 and Altria added $0.70 to $55.10 after Altria announced purchase of a 45% interest in Cronos at $16.25 Cdn. per share. Value of the purchase is estimated at U.S. $1.8 billion ($2.2 billion Cdn.).

Big Lots dropped $7.22 to $33.08 after reporting less than consensus third quarter results. The company also lowered guidance.

Lululemon added $1.66 to 133.10 after reporting higher than consensus third quarter earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/12/06/stock-market-outlook-for-december-7-2018/

Note seasonality charts on Non-farm Payrolls, Manufacturer New Orders, Canadian Exports and Canadian Imports.

Observations

Brutal day for North American equity markets yesterday! Two exceptions: Canadian gold stocks and interest sensitive U.S. equities, notably REITs. IYR reached an all-time high.

Russell 2000 was the first broadly based index to break below lows set in late October.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:15: Bearish. 36 stocks broke intermediate support. None broke resistance. $STT

Editor's Note: After 10:15 AM EST, another 25 S&P 500 stocks moved below intermediate support.

Eurozone ETF $EZU as well as iShares Europe $IEV moved below support extending an intermediate downtrend

United Kingdom iShares $EWU moved below $30.77 extending an intermediate downtrend.

BMO Equal Weight Bank ETF $ZEB.CA moved below $27.41 extending an intermediate downtrend

National Bank $NA.CA, a TSX 60 stock moved below $58.73 extending an intermediate downtrend

Toromont Industries $TIH.CA moved below $56.01 extending an intermediate downtrend

Agnico-Eagle $AEM $AEM.CA, a TSX 60 stock moved above $50.84 Cdn. extending an intermediate uptrend

EAFE iShares $EFA moved below $60.58 extending an intermediate downtrend

Toronto Dominion Bank $TD.CA, a TSX 60 stock moved below $70.32 extending an intermediate downtrend

Sun Life Financial $SLF.CA, a TSX 60 stock moved below $46.48 extending an intermediate downtrend

US Factory Orders down 0.7% (NSA) in October, better than the 1.6% decline that is average for the month. $MACRO #Economy #Manufacturing

Financial SPDRs $XLF moved below $25.02 extending an intermediate downtrend.

Kirkland Lake $KL.CA moved above $30.90 to an all-time high extending an intermediate uptrend

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for December 6th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for December 6th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for December 6th 2018

Green: Increase from previous day

Red: Decrease from previous day

http://www.equityclock.com/about/seasonal-advantage-portfolio/

S&P 500 Momentum Barometer

The Barometer added 0.40 to 41.60 yesterday. It remains Intermediate Neutral.

TSX Momentum Barometer

The Barometer dropped 5.37 to 34.30 yesterday. It remains Intermediate Oversold.

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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