Tech Talk for Friday October 5th 2018

Next report is released on Tuesday October 9th. Canada celebrates "Thanksgiving" on Monday.

Pre-opening Comments for Friday October 5th

U.S. equity index futures were lower this morning. S&P 500 futures were down 7 points in pre-opening trade.

Index futures moved slightly lower following release of economic news at 8:30 AM EDT. Consensus for September Non-farm Payrolls was a slip to 185,000 from 201,000 in August. Actual was 134,000. Consensus for September Unemployment Rate was 3.8% versus 3.9% in August. Actual was 3.7%. Consensus for September Hourly Earnings was an increase of 0.3% versus a gain of 0.4% in August. Actual was an increase of 0.3%. Consensus for August Trade Deficit was an increase to $53.1 billion from $50.1 billion in July. Actual was $53.2 billion.

The Canadian Dollar was virtually unchanged at 77.37 cents U.S. following release of Canada's September Employment report at 8:30 AM EDT. Consensus was an increase of 24,700 versus a drop of 51,600 in August. Actual was. Consensus for September Unemployment Rate is 5.9% versus 6.0% in August. Actual was 5.9%.

Precision Drilling (PD $4.44) and Trinidad Drilling (TDG $1.84) have agreed to merge in a deal valued at $1.028 billion. Each Trinidad Drilling share converts to 0.445 shares of Precision Drilling

Pepsico (PEP $106.61) is expected to open lower after Macquarie downgraded the stock to Neutral from Outperform. Target was reduced to $107 from $122.

Eli Lilly (LLY $112.99) is expected to open higher after JP Morgan raised its target price to $123 from $117

PayPal (PYPL $84.34) is expected to open lower after JP Morgan lowered its target price to $98 from $102.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/10/04/stock-market-outlook-for-october-5-2018/

Note seasonality charts on Non-farm Payrolls, Hourly Earnings and New Manufacturing Orders.

Michael Campbell's Radio Show

Don Vialoux is a guest on Michael Campbell's radio show on Saturday. The show runs between 8:30 AM and 10:00 AM Vancouver time (11:30 AM- 1:00 PM Toronto time). Mr. Vialoux is scheduled to appear at approximately 9:00 AM Vancouver time (Noon Toronto time). Listen to the show at www.CKNW.com.

Observations

North American equity markets responded to a spike in U.S. Treasury yields.

The VIX Index responded to higher interest rates with a spike.

NASDAQ Composite Index dropped below 7,873.93 completing a double top pattern.

Russell 2000 Index and related ETF remain under technical pressure with the Index moving below 1652.73

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bearish. Intermediate breakout: $CME. Breakdowns: $BBY $TPR $GPS $CL $KMB, $KIM $MNK $EQUIX

More S&P 500 stocks break intermediate support since 10:00: $CTXS $ PWR $AAL $RL $MAT $MLT

Editor's Note: After 2:00 PM EDT, additional breakdowns included ILMN, TIF, NWL and EL

S&P 500 Equal Weight ETF $RSP moved below short term support at 105.79 on higher Treasury yields.

Telus $T.CA, a TSX 60 stock moved below $46.00 extending an intermediate downtrend.

IGM Financial $IGM.CA moved below $34.84 extending an intermediate downtrend.

Manulife Financial $MFC.CA, a TSX 60 stock moved below $22.68 extending an intermediate downtrend.

Canadian Utilities $CU.CA moved below $30.42 extending an intermediate downtrend.

Gildan Activewear $GIL.CA moved below $37.85 setting an intermediate downtrend.

TSX Composite Index $TSX.CA moved below 15,975.75 extending an Head & Shoulders pattern.

Magna International $MG.CA $MGA, a TSX 60 stock moved below $67.63 extending an intermediate downtrend.

South Africa iShares $EZA moved below $49.54 extending an intermediate downtrend.

Invesco Solar ETF $TAN moved below $20.62 extending an intermediate downtrend.

Cameco $CCJ $CCO.CA, a TSX 60 stock moved above $$12.19 U.S. setting an intermediate uptrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for October 4th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 4th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 4th 2018

Green: Increase from previous day

Red: Decrease from previous day

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S&P 500 Momentum Barometer

The Barometer dropped 4.60 to 50.60 yesterday. It remains intermediate neutral and continues to trend down.

TSX Momentum Barometer

The Barometer dropped another 6.30 to 32.77 yesterday. It remains intermediate oversold, but continues 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

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