Tech Talk for Thursday October 4th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 11 points in pre-opening trade.

Index futures were virtually unchanged following release of the Weekly Jobless Claims report at 8:30 AM EDT. Consensus was a decline to 210,000 from 215,000 last week. Actual was 207,000.

Constellation Brands (STZ $) is expected to open higher after the company reported higher than consensus fiscal second quarter results. The company also raised guidance.

Eli Lilly (LLY $) is expected to open higher after reporting positive trials for a diabetes treatment.

HP Inc (HPQ $) is expected to open higher after the company offered positive guidance. The company also announced plans to increase its dividend by 15%.

Barnes & Noble gained $1.14 to $6.60 after the company confirmed receipt of an expressions of interest to acquire the company.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/10/03/stock-market-outlook-for-october-4-2018/

Note seasonality charts on the Utilities sector, Consumer Staples sector, Crude Oil Days of Supply, Gasoline Days of Supply and Crude Oil.

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

Aluminum prices and related ETNs/equities surged.

Interest sensitive equities (REITs, Utilities) were hit when yield on long term Treasuries broke to new highs.

Greece in trouble again (18 month low)?

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Nil.

Bausch Health $BHC.CA, a TSX 60 stock moved above $36.02 extending an intermediate uptrend

Norbord $OSB.CA moved below $42.29 extending an intermediate downtrend.

Brazil iShares $EWZ moved above $37.65 completing a double bottom pattern.

"Gassy" U.S. based ETF $FCG moved above $22.86 setting an intermediate uptrend.

Editor's Note: "Gassy" Canadian ETF finally woke up yesterday.

Mexican investors are less than impressed with the revised NAFTA deal.

Global Timber iShares $WOOD moved below $74.05 extending an intermediate downtrend.

U.S. REIT iShares $IYR moved below $78.48 extending an intermediate downtrend.

Yield on 10 year Treasuries $TNX moved above 3.115% to a 7 year high extending an intermediate uptrend.

Ditto for 30 year Treasury yields!

Conversely, long term Treasury iShares $TLT moved below $114.79 and $114.47 to an 18 month low extending an intermediate downtrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for October 3rd 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for October 3rd 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 3rd 2018

Green: Increase from previous day

Red: Decrease from previous day

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S&P 500 Momentum Barometer

The Barometer dropped 2.60 to 55.20 yesterday. It remains intermediate neutral and continues to trend down.

TSX Momentum Barometer

The Barometer gained 2.10 to 39.08 yesterday. It remains intermediate oversold and 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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