Tech Talk for Thursday January 10th 2019

U.S. equity index futures were lower this morning. S&P 500 futures were down 9 points in pre-opening trade.

Index futures were virtually unchanged following release of the Weekly Jobless Claims report at 8:30 AM EST. Consensus was a drop 225,000 from an upwardly revised 233,000 last week. Actual was 216,000.

Twitter gained $1.06 to $33.31 after Bank of America/Merrill upgraded the stock to Buy from Neutral. Target was raised to $39 from $31.

Bed Bath & Beyond (BBBY $12.26) is expected to open higher after the company raised its guidance for 2019

Este Lauder (EL $127.83) is expected to open lower after Wells Fargo downgraded the stock to Market Perform from Outperform. Target price was reduced to $135 from $165.

KB Homes (KBH $21.98) is expected to open higher after reporting higher than consensus fourth quarter earnings. The company also raised guidance.

Illinois Tool Works (ITW $129.99) is expected to open lower after JP Morgan downgraded the stock to Underperform from Neutral.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/01/09/stock-market-outlook-for-january-10-2019/

Note seasonality charts on Crude Oil days of Supply and Gasoline days of Supply.

Update on the performance of the seasonal advantage portfolio

Following is a link:

http://www.equityclock.com/2019/01/09/update-on-the-performance-of-the-seasonal-advantage-portfolio/

Observations

The U.S. Dollar Index and its related ETN were notably weaker yesterday. Conversely, the Euro moved above resistance at 115 to set an intermediate uptrend.

The Canadian Dollar also soared.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quietly bullish. Intermediate breakouts: $FL $PYPL. No breakdowns.

Editor's Note: After 10:00 AM EST, additional intermediate breakouts included CMG, DHI, LEN and NKTR.

Teck Resources $TECK, a TSX 60 stock moved above $22.74 U.S. extending an intermediate uptrend.

VALE $VALE, another base metal stock moved above $14.28 completing a double bottom pattern.

'Tis the season for base metal stocks and ETFs to move higher to at least the end of February.

$ZMT.CA $XBM.CA $PICK $COPX

Badger Daylighting $BAD.CA moved above $34.30 extending an intermediate uptrend.

Another Home Builder stock breakout! DR Horton $DHI moved above $38.11 completing a double bottom pattern.

Lennar $LEN, another Home Builder stock moved above $44.10 and 44.73 completing a base building pattern.

Editor's Note: Not surprising, the Home Construction ETF ITB moved above $32.89 to complete a double bottom pattern

Norbord $OSB.CA moved above $38.38 completing a base building pattern.

'Tis the season for Norbord to move higher to the end of April $OSB.CA

Commodity prices spike higher on U.S. Dollar weakness.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for January 9th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for January 9th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for January 9th 2019

Green: Increase from previous day

Red: Decrease from previous day

Gains to date by Major U.S. and Canadian Equity Indices from their late December Lows

S&P 500 Momentum Barometer

Percent of S&P 500 stocks trading above their 50 day moving average increased 4.80 to 31.00 yesterday. It continues to recover from a deeply oversold level.

TSX Momentum Barometer

Percent of TSX stocks trading above their 50 day moving average jumped 14.40 to 55.56 yesterday. It continues to recover from an intermediate oversold level.

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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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