Tech Talk for Thursday October 25th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 20 points in pre-opening trade.

Index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for Weekly Jobless Claims was 213,000 versus 210,000 last week. Actual was 215,000. Consensus for September Durable Goods Orders was a drop of 1.3% versus a gain of 4.1% in August. Actual was a gain of 0.8%. Excluding transportation, consensus for September Durable Goods Orders was an increase of 0.3% versus a gain of 0.1% in August. Actual was a drop of 0.1%

The European Central Bank maintained its overnight lending rate.

Microsoft (MSFT $102.32) is expected to open higher after releasing better than consensus third quarter sales and earnings.

Tesla (TSLA $288.50) is expected to open higher after reporting a surprising quarterly profit.

Advanced Micro Devices (AMD $22.79) is expected to open lower after reporting lower than consensus third quarter sales and earnings.

Ford (F $8.18) is expected to open higher after reporting higher than consensus third quarter sales and earnings.

Visa (V $134.26) is expected to open higher after reporting higher than consensus fiscal fourth quarter earnings.

Merck (MRK $70.54) is expected to open higher after reporting higher than consensus third quarter earnings. The company also announced a $10 billion share buyback program.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/10/24/stock-market-outlook-for-october-25-2018/

Note seasonality chart on New Home Sales

Observations

Selling pressures on U.S. equities and related indices/ETFs accelerated yesterday afternoon.

Weakness in the technology sector led the decline.

The VIX spiked.

No "sugar coating" technical action by North American equity markets yesterday, unless ...

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quietly mixed. Intermediate breakouts: $KO $VAR. Breakdowns: $GD $T.

Editor's Note: Selling accelerated after 10:00 AM EDT. Breakdowns included ETN,RE,VRTX, COP, NE, ARNC, APC, TMK PRU, DVA, MCK, NOC,CRM, WDC, GPN, ADSK, REGN, ALXN, ABC, UNM, BHF, NFLX, DISCA, ETN, AMGN, MSFT, HP, DO, MRO, ACN, ESRX, XLNX, MNK and COG. Breakouts: AMT, DUK, ETR and DG

Coca Cola $KO, a Dow Jones Industrial stock moved above $46.70 extending an intermediate uptrend.

Nutrien $NTE.CA, a TSX 60 stock moved below $67.63 extending an intermediate downtrend.

Fortis $FTS.CA, a TSX 60 stock moved above $43.23 extending an intermediate uptrend.

Global Base Metals ETF $PICK moved below $29.06 extending an intermediate downtrend.

Wheat ETN $WEAT moved below $6.70 extending an intermediate downtrend.

Utilities SPDRs $XLU moved above $54.88 extending an intermediate uptrend.

Consumer Staples SPDRs $XLP moved above $55.11 extending an intermediate uptrend.

Toromont Industries $TiH.CA moved below $61.80 Cdn. completing a double top pattern.

Netflix $NFLX, one of the FAANG stocks moved below $310.93 extending an intermediate downtrend.

Methanex $MX.CA $MEOH moved below Cdn $92.21, $89.25 and $88.39 setting an intermediate downtrend.

Microsoft $MSFT, a Dow Jones Industrial stock moved below $104.36 and $104.20 extending an intermediate downtrend.

Canadian banks and related ETFs are leading Canadian equity prices on the downside. $ZEB.CA

Coal ETF $KOL moved below $14.78 extending an intermediate downtrend.

Steel ETF $SLX moved below $41.31 extending an intermediate downtrend.

Uranium ETF $URA moved below $12.01 extending an intermediate downtrend.

US New Home Sales down 8.9% YTD, weakest performance since 2008. $MACRO #Economy #Housing

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for October 24th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 24th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 24th 2018

Green: Increase from previous day

Red: Decrease from previous day

Schachter Energy Report

Josef has released his October report. Access by subscription is available at www.schachterenergyreport.ca

Josef has a positive rating on Valuation, a cautious rating on Sentiment and a negative rating on technicals for the energy sector.

Josef says: "Overall, the condition is still one of caution and waiting for the right window, which should occur in November to early December. Remain Patient!"

Editor's Note: Seasonal influences for the Canadian energy sector support Josef's conclusion.

S&P 500 Momentum Barometer

The Barometer dropped 3.40 to 13.80 yesterday. It remains intermediate oversold and continues to show early signs of bottoming.

TSX Momentum Barometer

The Barometer fell 7.18 to a new intermediate low for this cycle at 16.67. It remains deeply oversold, but has not shown technical signs of a bottom.

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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