Tech Talk for Friday February 21st 2020

U.S. equity index futures were lower this morning. S&P 500 futures were down 12 points in pre-opening trade.

Index futures were virtually unchanged following release of January Existing Home Sales at 8:30 AM EST. Consensus was a decline to 5.48 million from 5.54 million units in December. Actual was 5.43 million units.

Royal Bank (RY $108.00 Cdn.) is expected to open higher after reporting higher than consensus fiscal first quarter earnings.

Deere gained $10.92 to $165.83 after reporting higher than consensus fiscal first quarter earnings.

Lululemon dropped $1.68 to $262.00 after the company confirmed the closing of most of its 38 China stores due to the coronavirus.

Coca Cola slipped $0.07 to $59.65 after warning that the coronavirus will slow first quarter revenues.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/02/20/stock-market-outlook-for-february-21-2020/

Note comments on U.S. Freight Shipments

Observations

Currencies other than the U.S. Dollar are under pressure.

The Japanese Yen has virtually collapsed during the past week.

The British Pound moved below support at 129.04 setting an intermediate downtrend.

Currency weakness is having an impact on international equity and ETF prices valued in U.S. Dollars.

Japan iShares dropped sharply and completed an intermediate topping pattern

Ditto for South Korea iShares, down over 3% yesterday!

Meanwhile, Canadian oil prices have jumped over 17% during the past 10 days.

Canadian energy stocks finally are starting to respond.

'Tis the season for the Canadian energy sector to move higher on a real and relative basis until the third week in April!

$SPTEN Relative to the S&P 500

StockTwits released yesterday @EquityClock

Days of supply of gasoline rolling over earlier than average this year, however, the level remains elevated above the seasonal norm and above the level seen last year at this time. $USO $UGA $XLE $XOP

Editor's Note: Gasoline prices in Canada and the U.S. have a history of moving higher to the end of May. Symbol for the ETF is UGA.

CGI Group $GIB.A.CA, a TSX 60 stock moved below $100.02 extending an intermediate downtrend.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for February 20th 2020

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for February 20th 2020

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for February 20th 2020

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards' Blog

Keith asks "Everything's up - but is that good"? Following is a link:

https://www.valuetrend.ca/everythings-up-but-is-that-good/

S&P 500 Momentum Barometer

The Barometer added 0.20 to 64.13 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer added 0.30 to 64.35 yesterday. It remains intermediate overbought.

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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