Tech Talk for Tuesday August 28th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 4 points in pre-opening trade.

Bank of Montreal (BMO $106.16) is expected to open higher after reporting higher than consensus fiscal third quarter earnings.

Bank of Nova Scotia (BNS $78.30) is expected to open higher after increasing its dividend.

Best Buy dropped $4.16 to $77.50 after lowering guidance for its third quarter.

Tiffany gained $8.52 to $138.30 after reporting higher than consensus second quarter sales and earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/08/27/stock-market-outlook-for-august-28-2018/

Note seasonality charts on the VIX Index and 10 Year Treasury Note Futures.

Upcoming BNN Appearance:

Jon Vialoux will be on BNN's Market Call Tonight at 6:00pm ET this Friday, August 31st taking your calls on Technical Analysis and Seasonal Investing.  CALL TOLL-FREE 1-855-326-6266,  EMAIL marketcall@bnnbloomberg.ca,  or TWEET @MarketCall

Observations

The tentative U.S. trade deal with Mexico and expectations for a deal with Canada had a positive impact on Mexico iShares and the Canadian Dollar. Nice short term breakout by the Canadian Dollar above U.S. 77.14 cents!

Finally, early signs of a technical bottom by the Shanghai Composite! The Index moved above its 20 day moving average. Relative strength changed to neutral from negative. Short term momentum indicators (Stochastics, RSI, MACD) have turned up.

The Index has a history of bottoming at this time of year.

The Biotech sector continues to follow its seasonal pattern.

Cannabis stocks and related ETF continue to surge. Nice breakout by HMMJ above $20.39!

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bullish. Breakouts: $NE $CINF $GS $PKI $TXT $ADI $JNPR $CF $DWDP $ECL $ESS $SHW. No breakdowns.

Editor's Note: After 10:00 AM EDT, breakouts included RMD, TMO, INCY, IDXX, ABC, ETN, HON, COO and BLL.

Goldman Sachs $GS, a Dow Jones Industrial stock moved above $239.73 completing a Reverse Head & Shoulders pattern.

Financial SPDRs $XLF moved above $28.56 extending an intermediate uptrend.

India ETF $PIN moved above $26.60 extending an intermediate uptrend.

NASDAQ units $QQQ moved above $182.93 to an all-time high extending an intermediate uptrend.

Trader's Corner

Equities and Related ETFs

Daily Seasonal/Technical Equity Trends for August 27th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for August 27th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for August 27th 2018

Green: Increase from previous day

Red: Decrease from previous day

Technical Scoop

David Chapman says," Market convictions defy court convictions and risk financial accident but economy is fine and gold may shine". See

http://www.enrichedinvesting.com/PDF/Technical-Scoop-2018-Aug-27-Final.pdf

'Tis the season for strength in gold and gold stocks!

Keith Richards' Blog

Congratulations to Keith Richards and his ValueTrend team for receiving the Canadian Excellence Award for 2018-2019. This is the second time that they have received the award.

Following is a link:

https://www.valuetrend.ca/market-musings/

S&P 500 Momentum Barometer

The Barometer gained another 4.60 to 74.40 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer added 3.10 to 52.89 yesterday. It remains intermediate neutral.

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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