Tech Talk for Tuesday December 3rd 2019
U.S. equity index futures were lower this morning. S&P 500 futures were down 22 points in pre-opening trade. Index futures responded to comments by President Trump that a U.S./China trade deal may not be finalized until after 2020.
Gold responded to Trump's comments by adding $9.50 to $1,478.70 per ounce
Bank of Montreal (BMO $100.71) is expected to open higher after reporting higher than consensus fiscal fourth quarter earnings. The Bank also raised its dividend.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/12/clip_image0011.png "clip_image001[1]")
Canadian National Railway (CNR $119.75) is expected to open lower after the company lowered its fourth quarter earnings guidance following a recent labour strike.
AK Steel gained $0.11 to $3.00 after Cleveland Cliffs offered to buy the company in a stock exchange deal valued at $3.36. Each share of AK Steel will receive 0.40 shares of Cleveland Cliffs (CLF $8.41)
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/12/clip_image0031.png "clip_image003[1]")
UnitedHealth Group dropped $1.66 to $278.00 after the company lowered its earnings guidance.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/12/clip_image0041.png "clip_image004[1]")
EquityClock's Daily Market Comment
Following is a link:
http://www.equityclock.com/2019/12/02/stock-market-outlook-for-december-3-2019/
Note seasonality chart on U.S. Construction Spending.
Jon Vialoux on BNN Bloomberg
Jon will be on BNN's Market Call Tonight at 6:00pm ET on Wednesday, December 4th 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 U.S. Dollar Index recorded significant technical weakness yesterday by moving below its 20 and 50 day moving averages. Also, short term momentum indicators (i.e. Stochastics, RSI, MACD) rolled over from short term overbought levels.
'Tis the season for the U.S. Dollar Index to move lower to the end of the year!
Precious metal futures and related equities responded on both sides of the border by moving higher. The Gold Bug Index moved nicely above its 20 and 50 day moving averages. Short term momentum indicators also moved higher from short term oversold levels.
Seasonal influences for precious metals futures and equities normally turn positive in the second week in December for a seasonal trade lasting to at least the end of February. Silver is preferred over gold during this period.
FUTURE_SI1 Relative to the S&P 500 | FUTURE_SI1 Relative to Gold |
Favourable seasonal influences for the sector are appearing earlier than usual this year. Palladium futures broke to an all-time high yesterday on a move above $1,799.20.
StockTwits released yesterday @EquityClock
Silver equities are moving higher. Nice breakout by Pan American Silver $PAAS above $19.44 extending an intermediate uptrend.
Natural Gas ETN $UNG moved below $17.74 extending an intermediate downtrend.
Uranium ETF $URA moved below $10.72 setting an intermediate downtrend.
Bank of America $BAC, an S&P 100 stock moved above $33.60 extending an intermediate uptrend.
ManuLife $MFC.CA, a TSX 60 stock moved above $26.22 to a 10 year high extending an intermediate uptrend.
Pembina Pipeline $PPL.CA, a TSX 60 stock moved below $45.70 setting an intermediate downtrend.
Trader's Corner
Equity Indices and related ETFs
Daily Seasonal/Technical Equity Trends for December 2nd 2019
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for December 2nd 2019
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for December 2nd 2019
Green: Increase from previous day
Red: Decrease from previous day
Technical Scoop
Thank you to David Chapman and www.EnrichedInvesting.com for a link to the weekly comment:
Headline reads, "Nine turn, recession unlikely, slowdown ongoing, continued repo, blue skies, debt high, beckoning Santa". Following is the link:
S&P 500 Momentum Barometer
The Barometer dropped 6.21 to 66.73 yesterday. It remains intermediate overbought.
TSX Momentum Barometer
The Barometer dropped 5.48 to 65.30 yesterday. It remains intermediate overbought.
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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