Tech Talk for Thursday September 20th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 10 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 an increase to 210,000 versus 203,000 last week. Actual was. 201,000. Consensus for Philly Fed Index was 19.6 . Actual was 22.9.

Red Hat (RHT $143.16) is expected to open lower after reporting less than consensus second quarter revenues. Stifel Nicolaus lowered its target price to $160 from $172.

Under Armour (UAA $18.76) is expected to open higher after the company raised its 2018 guidance.

Advanced Micro Devices (AMD $31.21) is expected to open higher after Stifel Nicolaus increased its target price to $38 from $21.

Darden Restaurants gained $6.11 to $124.00 after reporting higher than consensus fiscal first quarter results. The company also raised its guidance.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/09/19/stock-market-outlook-for-september-20-2018/

Note seasonality charts on 30 Year Treasury Bond Futures, U.S. Financial sector, Utilities sector, Housing Starts and Spain IBEX 35 Index

Observations

Precious metal prices and related equities finally are catching a seasonal bid. Better late than never!

BMO Equal Weight Bank ETF touched above $30.46 to an all-time high extending an intermediate uptrend. 'Tis the season for strength in the sector until the end of November!

StockTwits Released Yesterday @EquityClock

Lithium ETN $LIT moved above $32.65 completing a double bottom pattern..

Teck Resources $TECK $TECK.B.CA moved above $24.60 U.S. and $31.75 Cdn. completing a double bottom pattern.

Tech action to 10:15: Bullish. Breakouts: $DO $MUR $MET $CMI $AAL $JNPR $WRK $NFX $RIG $PRU $USB $AOS $FMC. Breakdowns: $CPRT $FDX

Editor's Note: After 10:15 AM EDT, breakouts included JPM, NBL and CBOE. Breakdowns included NEE HFC and ES

Steel ETF $SLX moved above $45.50 setting an intermediate uptrend.

CCL Industries $CCL.B.CA, a TSX 60 stock moved below $61.89 setting an intermediate downtrend.

Canadian lumber stocks drop after CIBC lowered ratings on the sector. $CFP.CA $WFT.CA $IFP.CA.

Silver stocks finally show signs of technical bottoms! Nice double bottom by $HL. $SIL $WPM also gained

"Gassy" stocks and ETFs are responding to higher natural gas prices on both sides of the border. $VET.CA $APA $FCG

Barrick Gold $ABX $ABX.CA, a TSX 60 stock moved above $10.77 U.S. and $13.93 Cdn. completing a double bottom pattern.

Semafo $SMF.CA, another gold producer completed a base building pattern on a moved above $3.28.

Financial SPDRs $XLF moved above $28.72 extending an intermediate uptrend.

Utilities SPDRs $XLU moved below $53.13 completing a double top pattern.

Editor's Note: The interest sensitive U.S. REITs ETF also broke support just after finishing its period of seasonal strength

Insurance and airlines ETFs breaking out today – both top picks of ours. bnnbloomberg.ca/jon-vialoux… $IAK $JETS #SeasonalInvestingDoneRight

US #Housing Starts bounce back in August, rising 2.3% (NSA), a positive divergence compared to -4.6% average. $MACRO #Economy $ITB $XHB

Trader's Corner

Daily Seasonal/Technical Equity Trends for September 19th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for September 19th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for September 19th 2018

Green: Increase from previous day

Red: Decrease from previous day

Schachter Energy Report

September edition of this pay-per-view service has just been released.

Josef says:

Natural gas is extremely cheap and with low storage in the U.S. and Canada, the upcoming winter should drive prices up sharply as they have done in the past. A doubling of NYMEX and AECO this winter per MCF is likely. Crude oil is now in oversupply and should decline below U.S. $60/lb. before winter.

Following is a link to his service:

https://www.schachterenergyreport.ca/

Editor's Note: Agreed on the natural gas call.

S&P 500 Momentum Barometer

The Barometer was up 0.60 to 68.20 yesterday. It remains intermediate overbought and shows signs of rolling over.

TSX Momentum Barometer

The Barometer added 0.67 to 39.75 yesterday. It remains intermediate oversold, but 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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