Tech Talk for Tuesday October 29th 2019
U.S. equity index futures were lower this morning. S&P 500 futures were down 2 points in pre-opening trade.
Alphabet dropped $9.98 to $1,279.00 after reporting lower than consensus third quarter earnings.
Shopify plunged $26.04 to $298.39 after reporting a surprising third quarter loss.
AT&T (T $38.49) is expected to open higher after Oppenheimer raised its target price on the stock to $47 from $41.
General Motors added $0.56 to $37.20 after reporting higher than consensus third quarter revenues.
EquityClock's Daily Market Comment
Following is a link:
http://www.equityclock.com/2019/10/28/stock-market-outlook-for-october-29-2019/
Note seasonality chart on the U.S. Industrial sector.
Observations
Several broadly based U.S. indices moved above intermediate resistance including the Dow Jones Transportation Average on a move above 10,856.73 and 10,876.38
Technology led the advance in U.S. equity markets yesterday. Technology SPDRs $XLK broke to an all-time high on a move above $82.52 extending an intermediate uptrend.
Lumber moved above $413.60 extending an intermediate uptrend. Lumber stocks quickly followed.
'Tis the season for forest product stocks to move higher!
Natural gas prices popped on a NOAA weather forecast predicting colder than average weather in the U.S. mid-west into the end of the year. Denver had its second October snow storm over the weekend.
Seasonal influences are positive for natural gas to near the end of the year.
Interest sensitive securities (e.g. U.S. Utilities and Government Bonds) came under technical pressure yesterday prior to news from the Federal Reserve on Wednesday. Ditto for the Canadian bond market!
Interesting reversal for Bitcoin!
International equity indices and their related ETFs trading on U.S. exchanges continue to move higher. Nice breakouts yesterday by Mexico, France and Italy.
StockTwits released yesterday @EquityClock
S&P 500 Index $SPX opened above 3,027.98 to an all-time high extending an intermediate uptrend
NetApp $NTAP, a NASDAQ 100 stock moved above $56.48 completing a base building pattern.
Alphabet $GOOGL, a NASDAQ 100 stock moved above $1,268.39 extending an intermediate uptrend. Testing its all-time high at $1,296.97
Microsoft $MSFT, a Dow Jones Industrial stock moved above $142.37 to an all-time high extending an intermediate uptrend. The company won a $10 billion Defense contract.
Russia ETF $RSX moved above $24.18 to a 5 year high extending an intermediate uptrend.
Equally weighted S&P 500 ETF $RSP moved above $109.71 and $109.72 to an all-time high extending an intermediate uptrend.
Europe iShares $IEV moved above $44.67 extending an intermediate uptrend.
Honeywell $HON, an S&P 100 stock moved above $172.73 re-establishing an intermediate uptrend.
Capital One $COF, an S&P 100 stock moved above $94.73 re-establishing an intermediate uptrend.
Bank of Montreal $BMO.CA, a TSX 60 stock moved above $98.38 setting an intermediate uptrend.
ManuLife $MFC.CA, a TSX 60 stock moved above $24.71 extending an intermediate uptrend.
BMO Emerging Markets $ZEM.CA moved above $19.80 setting an intermediate uptrend.
Shaw Communications $SJR, a TSX 60 stock moved above $20.14 U.S. setting an intermediate uptrend.
Canadian Government Bond ETF $XGB. moved below $22.06 completing a double top pattern.
Pacific ex Japan ETF $EPP moved above $46.20 resetting an intermediate uptrend
QQQ Trust $QQQ moved above $195.16 to an all-time high extending an intermediate uptrend
Trader's Corner
Equity Indices and related ETFs
Daily Seasonal/Technical Equity Trends for October 28th 2019
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for October 28th 2019
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for October 28th 2019
Green: Increase from previous day
Red: Decrease from previous day
Technical Scoop
Thank you to David Chapman and www.EnrichedInvesting.com for access to the weekly Technical Scoop. David offered the following introduction to his report:
Markets continue to "chug" higher and some international markets are breaking out. Are the markets about to soar? Could be. The driving force could be QE. We continue to wonder what is going on in the U.S. as the Fed continues its buying spree in the repo market. But it could be the fuel and of course QE continues in the EU and Japan and even to some extent in China.
This week marks the 90th anniversary of the famous 1929 stock market crash. Famous trader W.D. Gann had interesting things to say about the number 90. We take a brief look.
This week is rate decision week for the Fed, BofC and BOJ. Also U.S. employment numbers are out on Friday.
Markets moved higher but not everyone is quite on the same page. What does it mean? Will they all eventually move in sync? As discussed in our Chart of the Week (page 30), while the S&P 500 has been making new highs, the signs are there that suggest massive distribution is going on even as it appears others are prepared to break out to the upside. Our recession watch spreads (page 21) have turned positive. What does that mean? Gold "chugged" higher but so did the U.S. dollar.
Following is a link to the full report:
S&P 500 Barometer
The Barometer slipped 1.00 to 65.53 yesterday. It remains intermediate overbought.
TSX Barometer
The Barometer added 0.45 to 42.79 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
| Sponsored By... |
| More from the network: |