Tech Talk for Friday March 8th 2019

U.S. equity index futures were lower this morning. S&P 500 futures were down 21 points in pre-opening trade. The drop in index futures was prompted by a 4.4% fall by the Shanghai Composite Index following news of a slowdown in Chinese trade.

Index futures moved lower following release of economic news at 8:30 AM EST. Consensus for January Housing Starts was an increase to 1.190 million units from 1.078 million units in December. Actual was 1.23 million units. Consensus for February Non-farm Payrolls was 180,000 versus upwardly revised 311,000 in January. Actual was 20,000. Consensus for February Unemployment Rate was 3.9% versus 4.0% in January. Actual was 3.8%. Consensus for February Hourly Earnings was an increase of 0.3% versus a gain of 0/1% in January. Actual was an increase of 0.4%.

The Canadian Dollar added 0.27 to 74.60 cents U.S. following release of Canadian economic news at 8:30 AM EST. Consensus for February Canadian Employment was an increase of 1,200 versus a gain of 66,800 in January. Actual was 55,900. Consensus for February Unemployment Rate was 5.7% versus 5.8% in January. Actual was unchanged at 5.8%.

Costco gained $9.75 to $226.54 after reporting higher than consensus fourth quarter earnings. Raymond James and Raymond James raised their target price on the stock.

Exxon Mobil dropped $1.26 to $78.90 after Cowen downgraded the stock to Market Perform from Outperform. Target price was cut to $75 from $100.

Caesar's Entertainment added $0.22 to $8.80 on news that Carl Icahn raised his interest in the stock to 15.6% from approximately10%.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/03/07/stock-market-outlook-for-march-8-2019/

Note seasonality charts on Non-Farm Payrolls and Initial Jobless Claims.

Observations

Response to the European Central Bank's monetary policy announcement was not greeted well by currency markets. The Euro dropped below support at 112.15 to a 21 month low extending an intermediate downtrend.

OOOPs! Trump administration is exploring price disclosure requirements by hospitals and doctors.

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bearish. No breakouts. Breakdowns: $CCL $GM $GT $KR $CME $ICE $VRTX $GD $DXC $AMD

Editor's Note: After 10:00 AM EST, breakout included PSA and breakdowns included HUM, IFF and AMG.

S&P 500 Index $SPX moved below $2768 and 2765 completing a double top pattern

Another Canadian "gassy" stock breakout! $PONY.CA moved above $1.61 completing a double bottom pattern.

U.S. Dollar Index ETN $UUP moved above $25.90 to a two year high extending an intermediate uptrend

South Africa ETF $EZA moved below $51.70 setting an intermediate downtrend

CGI Group $GIB, a TSX 60 stock moved below $65.55 U.S. completing a double top pattern.

Berkshire Hathaway $BRK.B, a Dow Jones Industrial stock moved below $198.21 setting an intermediate downtrend

U.S. Broker iShares $IAI moved below $59.46 setting an intermediate downtrend

Trader's Corner.

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for March 7th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for March 7th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for March 7th 2019

Green: Increase from previous day

Red: Decrease from previous day

Updates

More previously favoured seasonal trades triggered by upside intermediate breakouts have recorded short term technical deterioration (i.e. breaks below their 20 day moving average, downtrending momentum indicators, negative strength relative to the S&P 500 Index). Accordingly, they no longer are supported as a seasonal trade. They include:

Incyte (INCY $82.45) discussed on January 8th at $74.89

BMO Base Metals ETF (ZMT $44.45) discussed on January 9th at $41.45

Base Metals iShares (PICK $30.23) discussed on January 9th at $28.44

GlobeX Copper Miners (COPX $21.23) discussed on January 9th at $19.23

eBay (EBAY $36.21) discussed on January 10th at $30.57

Netflix (NFLX $352.60) discussed on January 11th at 337.59

Emerging Markets iShares (EEM $41.94) discussed on January 17th at 41.35

First Quantum (FM $14.56) discussed on January 30th at $14.23

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

S&P 500 Momentum Barometer

The Barometer dropped another 3.20 to 84.00 yesterday. It remains intermediate overbought and has started to trend down.

TSX Momentum Barometer

The Barometer dropped another 2.95 to 78.06 yesterday. It remains intermediate overbought and has started to trend 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

Sponsored By...