Tech Talk for Thursday June 1st 2023
S&P 500 futures were higher this morning following passage of the Debt Ceiling bill by the House of Representatives. S&P 500 futures were up 4 points at 8:30 AM EDT.
Responses to quarterly reports released after the close yesterday generally were negative despite quarterly reports that were higher than consensus. Salesforce.com $CRM dropped $10.05 to $213.33. Crowd strike plunged $19.10 to $141.03. Okta dropped $8.30 to $82.60. Vicrotia's Secret plunged $2.91 to $17.51.
The exception was Chewy! Responses to better than consensus first quarter results were positive. The stock gained $4.01 to $33.58.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/06/clip_image0011.png "clip_image001[1]")
C3AI plunged $7.96 to 32.05 after reporting less than consensus quarterly results.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/06/clip_image0021.png "clip_image002[1]")
Macy's dropped $1.04 to $12.55 after reporting less than consensus first quarter revenues. The company also lowered guidance.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/06/clip_image0031.png "clip_image003[1]")
Dollar General plunged $18.09 to $183.00 after reporting lower than consensus first quarter revenues and earnings.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2023/06/clip_image0041.png "clip_image004[1]")
EquityClock's Daily Comment
Headline reads "S&P 500 Index has averaged a decline of 0.4% during the month of June, however, 60% of the time the month has been positive over the past two decades".
http://www.equityclock.com/2023/05/31/stock-market-outlook-for-june-1-2023/
Technical Notes
Pacific ex Japan iShares $EPP moved below $41.39 extending an intermediate downtrend.
Israel iShares $EIS moved below $52.37 extending an intermediate downtrend.
Oil Services ETF $OIH moved below $248.83 extending an intermediate downtrend.
Dow $DOW an S&P 100 stock moved below $48.52 extending an intermediate downtrend.
TSX 60 stocks moving below intermediate support: Canadian Natural Resources dropped below Cdn$73.78. CCL Industries moved below Cdn$62.96. Telus $T moved below Cdn$26.14. Magna International moved below Cdn$67.31. Rogers Communications moved below Cdn$59.92. George Weston $WN.TO moved below $159.42.
Base metals stocks on both sides of the border responded to continuing weakness in copper prices. HudBay Minerals $HBM.TO moved below Cdn$5.89 extending an intermediate downtrend.
Canadian lumber stocks are responding to a drop in U.S. lumber prices to a three year low. West Fraser $WFG.TO moved below $93.64, $92.99 and $92.00. Interfor $IFP.TO moved below
$20.25 and briefly touched $19.75.
Trader's Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 31st 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for May 31st 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 31st 2023
Green: Increase from previous day
Red: Decrease from previous day
Source for positive seasonal ratings: www.equityclock.com
Links offered by valued providers
Pressures mount for Canadian banks: John Aiken May 31
Pressures mount for Canadian banks: John Aiken - YouTube
Evercore ISI’s Mark Mahaney shares his top three stock picks
Evercore ISI’s Mark Mahaney shares his top three stock picks - YouTube
Branch: The narrow market breadth isn’t a good sign for a future rally
Branch: The narrow market breadth isn’t a good sign for a future rally - YouTube
A Look Around The World | Greg Schnell, CMT | Market Buzz (05.31.23)
A Look Around The World | Greg Schnell, CMT | Market Buzz (05.31.23) - YouTube
Jim Bianco joins Fox Business to discuss Future Rate Hikes, Fed Speak, the Job Market & Debt Ceiling
Chart of the Day
How well have North American equity indices and related stocks performed this year? The S&P 500 Index is up 8.86% since January 1st. However, the Index does not measure the average performance of stocks in the Index: Five high tech stocks in the Index, representing 25% of the weight in the Index, have dominated its performance. A more representative Index is the S&P 500 Equal Weight Index and its related ETF: RSP. Units are down 0.66% year to date. Even the TSX Composite Index and S&P/TSE 60 Index have outperformed RSP. Year-to-date, the TSX Composite Index is up 0.97% and the S&P/TSX 60 Index is up 0.69%.
Performance of the other broadly based U.S. equity index, the Dow Jones Industrial Average, has been the worst. Since January 1st the Average is down 0.72%.
S&P 500 Momentum Barometers
The intermediate term Barometer dropped another 4.20 to 30.00. It remains Oversold. Daily trend remains down.
The long term Barometer dropped 2.00 to 40.80. It remains Neutral. Daily trend remains down.
TSX Momentum Barometers
The intermediate term Barometer dropped 3.45 to 29.74. It remains Oversold. Daily trend remains down.
The long term Barometer dropped 0.86 to 48.28, It remains Neutral. Daily trend remains down.
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
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