Tech Talk for Friday November 2nd 2018

U.S. equity index futures moved higher this morning. S&P 500 futures were up 15 points in pre-opening trade. Index futures are responding to news that talks on trade negotiations between China and the U.S. are progressing.

Index futures were virtually unchanged following release of U.S. economic news at 8:30 AM EDT. Consensus for October Non-farm Payrolls was an increase to 189,000 from downwardly revised 118,000 in September. Actual was 250,000. Consensus for October Unemployment Rate was unchanged from September at 3.7%. Actual was unchanged at 3.7%. Consensus for October Average Hourly Earnings was an increase of 0.3% versus a gain of 0.3% in September. Actual was an increase of 0.2%. Consensus for September Trade Deficit was $52.4 billion versus $53.2 billion in August. Actual was $54 billion.

The Canadian Dollar was slightly lower at U.S. 76.35 cents following release of economic news at 8:30 AM EDT. Consensus for Canadian October Employment was an increase of 17,000 versus a gain of 63,300 in September. Actual was an increase of 11,200. Consensus for the October Unemployment Rate was unchanged from September at 5.9%. Actual was a slip to 5.8%. Consensus for Canadian September Merchandise Balance was unchanged from August at a surplus of $500 million. Actual was a deficit of $420 million

Apple dropped $14.41 to $207.81 after lowering guidance following release of fiscal fourth quarter results. Bank of Montreal and Morgan Stanley lowered their target price on the stock.

Starbucks advanced $4.59 to $63.22 after reporting higher than consensus fiscal fourth quarter earnings. Oppenheimer raised its target price to $70 from $61.

Kraft Heinz (KHC $) is expected to open lower after reporting lower than consensus third quarter earnings.

Chevron (CVX $) is expected to open higher after reporting higher than consensus third quarter earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/11/01/stock-market-outlook-for-november-2-2018/

Note seasonality charts on Crude Oil, Airline industry, Retail industry and Retail Trade.

Shanghai Composite Index

The Index advanced 2.70% to 2,676.48 last night on news that U.S./China trade negotiations were progressing. The Index moved smartly above its 20 day moving average at 2613.14. Seasonal influences are positive at this time of year.

Observations

Lots of short term technical encouragement yesterday with many equity indices, commodities and sectors moving above their 20 day moving average (e.g. DJIA)..

See Trader's Corner below

Precious metal prices (particularly Platinum) recorded strong gains yesterday.

'Tis the season for Platinum prices to move higher! ETN: PPLT

StockTwits released yesterday @equityclock

Technical action by S&P 500 stocks to 10:00: Quietly bullish. Intermediate breakouts: $CI $ESRX $ZTS. Breakdown: FISV

Editor's Note: After 10:00 AM EDT, breakouts: BLL $HPQ. No breakdowns.

Crude Oil ETN $USO moved below $13.43 extending an intermediate downtrend. Bearish for "oily" stocks.

We’ve been bearish on #Oil for past 6 weeks. Seasonal technical fundamental factors in today’s outlook equityclock.com/2018/10/31/… $USO $XLE $XOP

Base metal stocks and related ETFs $ZMT.CA $PICK $HBM.CA $COPX recover strongly from deeply oversold levels.

Another strong day for the Seasonal Advantage Portfolio as most positions show gains double that of the market. equityclock.com/about/seaso.

NatGas inventories now higher on the year. We are about two weeks out from the traditional withdrawal season for the commodity. $UNG $NG_F

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for November 1st 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for November 1st 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for November 1st 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer gained another 3.96 to 25.60 yesterday. It remains intermediate oversold and showed additional technical evidence of a bottom.

TSX Momentum Barometer

The Barometer jumped 6.64 to 24.07 yesterday. It remains intermediate oversold and showed the first technical sign of a bottom.

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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