Tech Talk for Tuesday June 21st 2022

U.S. equity index futures were higher this morning. S&P 500 futures were up 57 points in pre-opening trade.

The Canadian Dollar was virtually unchanged at US77.27 cents following release of Canada's April Retail Sales report at 8:30 AM EDT. Consensus was an increase of 0.8% versus a gain of 0.2% in March. Actual was an increase of 0.8%.

Spirit Airlines advanced $1.92 to $23.20 after Jet Blue raised its offer for the company to $33.50 per share.

Lennar added $2.96 to $67.59 after reporting higher than consensus fiscal second quarter revenues and earnings.

Kellogg rose $5.73 to $73.27 after the company announced plans to split the company into three independent companies.

EquityClock's Daily Comment

Headline reads "Energy sector ETF has pulled back to test rising trendline support, however, we have lost one of the three prongs to our approach". Following is a link:

http://www.equityclock.com/2022/06/18/stock-market-outlook-for-june-21-2022/

MarketWatch favourable comment on the Biotech sector

https://www.marketwatch.com/story/seven-reasons-the-beleaguered-biotech-sector-is-now-a-buy-11655475446?mod=moremw_bomw

Technical Notes for yesterday

Quebecor $QBR.B.TO moved above $29.17 setting an intermediate uptrend on news that the company plans to purchase Freedom Mobile from Rogers/Shaw for $2.85 billion.

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for June 20th 2022

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for June 20th 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for June 20th 2021

Green: Increase from previous day

Red: Decrease from previous day

All seasonality ratings are based on performance relative to the S&P 500 Index (except TSX)

Seasonality chart of the day

Seasonal influences for the NASDAQ 100 trading in Canadian Dollars are favourable between May 21st and August 31st. Investment choices for Canadian investors using Canadian Dollars are ZQQ.TO and XQQ.TO.

Strength in ZQQ.TO and XQQ.TO relative to the S&P 500 Index have just turned positive at a time when the S&P 500 Index is starting to show early signs of a possible technical bottom. Both units track the NASDAQ 100 Index with a currency hedge relative to the U.S. Dollar.

Watching inflation expectations in the U.S.

Larry Berman on Berman's Call yesterday mentioned an important chart that is useful for measuring inflation expectations in the U.S. In recent weeks, investors have been anticipating an increase in CPI and PPI and have marked down U.S. equity indices accordingly. A drop in inflation expectations likely will be the trigger for an intermediate term recovery in U.S. equity indices. Larry noted that an ETF is available that measures inflation expectation. Symbol is RINF. The ETF shows that inflation expectations likely peaked early last week. Additional weakness and potentially completion of a double top pattern on a move below $31.83 will add to U.S. equity index strength. Keep this ETF on your radar screen!

TSX Momentum Barometers

The intermediate term Barometer increased 2.93 to 9.21 yesterday. It remains Oversold, but is showing early signs of a bottom.

The long term Barometer increased 1.26 to 24.69 yesterday. It remains Oversold, but is showing early signs of a bottom.

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.