Tech Talk for Thursday July 26th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 5 points in pre-opening trade.

Index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for June Durable Goods Orders was an increase of 2.8% versus a drop of 0.4% in May. Actual was up 1.0%. Excluding transportation, consensus for June Durable Goods Orders was an increase of 0.5% versus no change in May. Actual was an increase of 0.4%. Consensus for Weekly Jobless Claims was an increase to 215,000 from 208,000 last week. Actual was 217,000

The European Central Bank decided to maintain overnight lending rates at current levels.

Second quarter reports continued to pour in. Twenty nine S&P 500 companies reported results since the close yesterday.

Canadian companies that reported after the close yesterday included Cameco and Teck Resources.

Much of the weakness in U.S. equity indices was related to the $43.80 drop by Facebook to $173.70 . Second quarter results included lower than consensus revenues and negative guidance.

Ford dropped $0.36 to$10.16 after lowering third quarter guidance.

Twitter dropped $1.32 to $42.90 after President Trump accused the company of "shadow banning" tweets by prominent Republican lawmakers.

Cameco dropped $0.72 to $10.20 after the company announced plans to extend its production halt.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/07/25/stock-market-outlook-for-july-26-2018/

Note seasonality charts on Margin Debt, Crude Oil Days of Supply, Gasoline Days of Supply, Crude Oil and New Home Sales

Observations

U.S. equity prices moved sharply higher during the last 30 minutes of trading yesterday on rumors that a trade agreement had been reached with Europe. Another 11 S&P 500 stocks broke intermediate resistance levels. Apple managed to move to an all-time high just at the close on a move above $194.20. After the close, the actual news was that U.S. and Europe are committed to negotiate a trade agreement.

U.S. equities have been "DeFAANGed" Netflix's dropped last week after Netflix reported less than expected results. After the close, Facebook dropped 23.2% to $167.00 after reporting lower than consensus second quarter results. The company also announced a new corporate strategy that implied growth at a slower rate. All of the FAANG stocks moved lower after the close.

Short term momentum indicators for commodities, related equities and ETFs turned positive thanks mainly to significant weakness in the U.S. Dollar Index and its related ETN.

StockTwits Released Yesterday @EquityClock

Dollarama $DOL.CA moved below $48.34 extending an intermediate downtrend.

Magna International $MG.CA $MGA, a TSX 60 stock moved below $75.47 Cdn extending an intermediate downtrend

Toromont Industries $TIH.CA moved above $60.19 to an all-time high extending an intermediate uptrend.

Technical action by S&P 500 stocks to 10:00: Mixed. Intermediate breakouts: $COG $IR $RHI $FLIR $EIX. Breakdowns: DLPH, LH $NOC $T.

Homebuilders stocks and ETFs moved lower on less than consensus June New Home Sales. $XHB $ITB $DHI.

IAMGold $IMG.CA $IAG moved below $7.44 Cdn. setting an intermediate downtrend.

Cineplex $CGX.CA, a TSX 60 stock moved below $28.76 setting an intermediate downtrend.

Another Cdn. autopart stock, Martinrea $MRE.CA broke support extending an intermediate downtrend. Joined Magna International $MG.CA

Add Linamar $LNR.CA to the list of Canadian autopart stocks breaking support and extending an intermediate downtrend.

Israel iShares $EIS moved above $53.86 extending an intermediate uptrend.

Agriculture ETF $COW.CA moved below $38.66 extending an intermediate downtrend.

Toronto Dominion Bank $TD.CA, a TSX 60 stock moved above $76.79 to an all-time high extending an intermediate uptrend

Product supplied of gasoline back to the highs of the year as summer driving season supports demand. $USO $UGA $XLE

New Home Sales down 9.5% (NSA) in June, significantly weaker than the 2.9% decline for the month $MACRO, #Housing #Economy.

Margin Debt running 7.1% below average through the first half of the year as investors remain hesitant to take on leverage $Study $SPX $NYA

Trader's Corner

Daily Seasonal/Technical Equity Trends for July 25th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for July 25th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for July 25th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 3.00 to 67.60 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer added 0.03 to 53.14 yesterday. It remains intermediate neutral and trending 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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