Tech Talk for Friday November 4th 2022

U.S. equity index futures were higher this morning. S&P 500 futures were up 10 points in pre-opening trade.

S&P 500 futures eased 12 points following release of the U.S. October Employment report at 8:30 AM EDT. October U.S. Non-farm Payrolls was expected to drop to 200,000 from 263,000 in September. Actual was 261,000. October Unemployment Rate was expected to increase to 3.6% from 3.5% in September. Actual was an increase to 3.7%. October Average Hourly Earnings were expected to increase 0.3% versus a gain of 0.3% in September. Actual was an increase of 0.4%. On a year-over-year basis, October Average Hourly Earnings was expected to increase 4.7% versus a gain of 5.0% in September. Actual was an increase of 4.7%.

The Canadian Dollar added $0.20 to US73.59 cents following release of the Federal Government's mini-budget last night and release of Canada's October Employment report at 8:30 AM EDT. October employment was expected to increase 10,000 versus a gain of 21,100 in September. Actual was an increase of 108,300. October Unemployment Rate was expected to increase to 5.3% from 5.2% in September. Actual was unchanged at 5.2%.

Starbucks $SBUX advanced $1.55 to $86.35 after reporting higher than consensus fiscal fourth quarter earnings.

PayPal $PYPL dropped $4.92 to $71.63 after lowering revenue guidelines for 2022

Atlassian $TEAM plunged $35.67 to $138.50 after reporting a surprising fiscal second quarter loss. Revenues also were lower than consensus.

Carvana $CVNA dropped $1.35 to $13.00 after the company reported a wider than consensus third quarter loss. Revenues also were lower than consensus.

EquityClock's Daily Comment

Headline reads "Cyclical sectors of the market are charting fresh 52-week relative highs as technology suffers".

http://www.equityclock.com/2022/11/03/stock-market-outlook-for-november-4-2022/

Technical Notes for yesterday

Gold ETN $GLD and related equity ETFs moved lower following the Federal Reserve news. GLD moved below $151.03 extending an intermediate downtrend. TSX Gold iShares moved below Cdn$14.31 extending an intermediate downtrend.

Barrick Gold $ABX.TO a TSX 60 stock moved below Cdn$18.83 extending an intermediate downtrend.

Palladium ETN $PALL moved below $165.87 extending an intermediate downtrend.

Fertilizer stocks dropped significantly after Nutrien $NTR reported lower than consensus third quarter results. Nutrien moved below Cdn$107.90 and US$77.78 extending an intermediate downtrend.

Microsoft $MSFT a Dow Jones Industrial Average stock moved below $219.13 extending an intermediate downtrend.

NASDAQ 100 stocks moving below support and extending intermediate downtrends included Cognizant $CTSH, PayPal $PYPL, Intuit $INTU and Qualcomm $QCOM.

Investors Digest

Don Vialoux was asked to offer a "Top Pick" for the next edition of Investors Digest to be released this weekend. Top pick was BMO Base Metals ETF (ZMT.TO).

Link offered by a valued provider

Tom Bowley asks "Does the Fed want a market crash"?

https://www.youtube.com/watch?v=gkhKiK5fPpM

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for November 3rd 2022

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for November 3rd 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for November 3rd 2021

Green: Increase from previous day

Red: Decrease from previous day

Chart of the Day

Communications Services SPDRs (XLC) moved below intermediate support at $46.47 extending an intermediate downtrend. Score on trend changed from Neutral (0) to Down (-2). Strength relative to the S&P 500 remained Negative (Score:-2). Price remained below its 20 day moving average (Score:-1). Daily momentum indicators are trending down (Score:-1). Total score changed from -4 to -6. Largest holdings include META, GOOG, GOOGL and NFLX.

S&P 500 Momentum Barometers

The intermediate term Barometer slipped 0.80 to 49.40. It remains Neutral.

The long term Barometer eased 0.60 to 33.80. It remains Oversold.

TSX Momentum Barometers

The intermediate term Barometer dropped 2.97 to 45.34. It remains Neutral.

The long term Barometer slipped 0.42 to 30.08. It remains Oversold.

Disclaimer: Seasonality ratings 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