Tech Talk for Tuesday December 18th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 16 points in pre-opening trade. Index futures advances on favourable news released by several major U.S. companies after the close yesterday. 'Tis the season for share buyback announcements!

Index futures were virtually unchanged following release of November New Home Starts. Consensus was an increase to 1.234 million units from 1.228 million units in October. Actual was 1.245 million

Universal Health (UHS $118.49) is expected to open higher after increasing its stock buyback program by another $500 million.

Boeing added $8.37 to $324.50 after increasing its dividend by 20% and increasing its share buyback program by another $2 billion.

Johnson & Johnson gained $0.66 to $129.80 after announcing a $5 billion share buyback program.

Oracle advanced $2.48 to $48.21 after reporting higher than consensus fiscal second quarter sales and earnings

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/12/17/stock-market-outlook-for-december-18-2018/

Note several technical studies showing the extent of U.S. equity market oversold levels (and what happens next).

The Astrologers Fund 2019 Forecasts

for the Stock Market, Trump, Gold and Crypto

by Henry Weingarten

Register here to attend our 11.55am December 21 Shindig webinar:

https://shindig.com/login/event/astrologer2019

Market Call on BNNBloomberg

Guest at Noon today is Hap Sneddon from CastleMoore. Join Hap for a technical view on markets

Observations

Another wild day for U.S. equity indices! The Dow Jones Industrial Average opened down about 300 points, recovered to break even and plunged to down over 500 points by the close.

The VIX Index spiked.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bearish. No intermediate breakouts. Breakdowns: $M $BR $PGR $HCA $GILD $UNP $MU $AVY $GPN $WCG $CNC

Editor's Note: After 10:00, another 31 S&P 500 stocks broke intermediate support.

Consumer Discretionary SPDRs $XLY moved below $100.31 extending an intermediate downtrend.

S&P 500 Equal Weight ETF $RSP moved below $95.40 extending an intermediate downtrend.

NASDAQ Biotech iShares $IBB moved below $100.66 extending an intermediate downtrend.

Editor's Note: Other biotech ETFs that broke support included BBH and FBT

Another gold stock breakout! Kinross Gold $K.CA $KGC moved above $3.93 Cdn and $3.99 Cdn. setting an intermediate uptrend.

Technology SPDRs $XLK moved below $63.38 extending an intermediate downtrend.

ExxonMobil $XOM, a Dow Jones Industrial stock moved below $74.70 extending an intermediate downtrend.

First Service Corp, $FSV.CA moved below $92.30 extending an intermediate downtrend.

U.S. Telecom iShares $IYZ moved below $26.82 extending an intermediate downtrend.

Berkshire Hathaway $BRK.B, a Dow Jones Industrial stock moved below $197.29 extending an intermediate downtrend.

Lithium ETN $LIT moved below $28.83 extending an intermediate downtrend.

Manulife Financial $MFC.CA, a TSX 60 stock dropped below $19.41 extending an intermediate downtrend.

Water Resources ETF $PHO moved below $28.22 extending an intermediate downtrend.

Empire #Manufacturing Survey showing -3.8 (NSA) in December, stronger than the average read for the month of -6.8. $MACRO #Economy

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for December 17th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for December 17th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for December 17th 2018

Green: Increase from previous day

Red: Decrease from previous day

U.S Government Shutdown later this week

Negotiations continue between President Trump and members of the Democrat party on government spending limits. A possible shutdown later this week if an agreement is not reached is one of several reasons why U.S. equities came under pressure yesterday. However, a recent study on the past 18 shutdowns since 1976 suggest that impact on equity markets during the shutdown period is limited: The S&P 500 Index gained in 9 periods and declined in 9 periods. Median change by the Index proved to be 0.0%.

Technical Scoop

Thanks to David Chapman and www.EnrichedInvesting for the following link:

http://www.enrichedinvesting.com/PDF/Barometer-Hiding-Claus-Unsafe-Havens-Like-Phoenix-Bust-Oil-Black-Swan-Debt-Cat-and-Mouse-Wars.pdf

Keith Richards' Blog

Keith says, "You are here". Following is a link:

https://www.valuetrend.ca/you-are-here/

Josef Schachter on BNN Bloomberg yesterday

Following are links:

Top Picks:

https://www.bnnbloomberg.ca/video/josef-schachter-s-top-picks~1567046

Past Picks

https://www.bnnbloomberg.ca/market-call/josef-schachter-s-past-picks~1567045

Full Program

https://www.bnnbloomberg.ca/market-call/full-episode-market-call-for-monday-december-17-2018~1563786

http://www.equityclock.com/about/seasonal-advantage-portfolio/

S&P 500 Momentum Barometer

The Barometer plunged 8.60 to 16.00 yesterday. It remains intermediate oversold and trending down.

TSX Momentum Barometer

The Barometer dropped 3.01 to 24.38 yesterday. It remains intermediate oversold.

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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