Tech Talk for Friday February 8th 2019

U.S. equity index futures were lower this morning. S&P 500 futures were down 13 points in pre-opening trade.

The Canadian Dollar gained 0.34 to 75.51 cents U.S. following release of Canada's January Employment Report at 8:30 AM EST. Consensus was a drop to 5,000 from 9,300 in December. Actual was 67,000. Consensus for January Employment Rate was an increase to 5.7% from 5.6% in December. Actual was an increase to 5.8%.

Bank of America (BAC $28.24) is expected to open higher after announcing a $2.5 billion share buyback program.

Coty surged $1.22 to $8.25 after reporting higher than consensus fiscal second quarter sales and earnings.

Mattel (MAT $12.36) is expected to open higher after reporting higher than consensus fourth quarter sales and earnings. SunTrust increased its target price to $15 from $13.

Sketchers advanced $5.07 to 32.77 after reporting higher than consensus fourth quarter sales and earnings. Moness raised its target price to $35 from $32.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/02/07/stock-market-outlook-for-february-8-2019/

Observations

Short term momentum indicators (i.e. Stochastics, RSI and MACD) on U.S. equity indices, international indices and economic sensitive sectors rolled over yesterday from short term overbought levels. Technical scores indicated "Trader's Corner" indicated below responded accordingly. U.S. equity indices have a history of moving higher for 4-6 weeks from extremely oversold levels followed by a retest of previous lows. U.S. equity indices bottomed six weeks ago. Caveat emptor!

Short Term Political Trouble for the U.S. Corporate Sector

Democrats in the House and Senate announced several initiatives yesterday including:

? A proposal to restrict share buybacks

? An investigation on apparent unfairly low fines on corporations that allegedly acted badly

? Announcement of a "Green New Deal" that effectively will shut down the coal industry over the next 10 years.

? A tax on U.S. equity transactions.

Upcoming BNN Appearance

Jon Vialoux will be on BNN's Market Call Tonight at 6:00pm ET this Friday, February 8th taking your calls on Technical Analysis and Seasonal Investing.  CALL TOLL-FREE 1-855-326-6266,  EMAIL marketcall@bnnbloomberg.ca,  or TWEET @MarketCall.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Mixed. Intermediate breakouts: $HBI $STI. Breakdowns: $MAC $CTL

Gildan Activewear $GIL.CA, a TSX 60 stock moved above $45.45 to an all-time high extending an intermediate uptrend

Mullen Group $MTL.CA moved below $11.29 after interview on BNNBloomberg extending an intermediate downtrend

Nutrien $NTR.CA, a TSX 60 stock moved above $69.29 completing a modified reverse Head & Shoulder pattern

Trader's Corner.

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for February 7th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for February 7th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for February 7th 2019

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 dropped 4.80 to 81.60 yesterday. It has started to roll over from an intermediate overbought level. Caveat Emptor!

TSX Momentum Barometer

The Barometer dropped 4.68 to 81.28 yesterday. It has started to roll over from an intermediate overbought level.

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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