Tech Talk for Wednesday August 15th 2018
U.S. equity index futures were lower this morning. S&P 500 futures were down 16 points in pre-opening trade. Trade war fears have resurfaced.
Index futures were virtually unchanged following release of economic news released at 8:30 AM EDT. Consensus for July Retail Sales was an increase of 0.1% versus a revised gain of 0.2% in June. Actual was an increase of 0.5%. Excluding auto sales, consensus for July Retail Sales was an increase of 0.3% versus a gain of 0.4% in June. Actual was an increase of 0.6%. Consensus for August Empire State Manufacturing Survey was a slip to 20.00 from 22.60 in July. Actual was 25.6.
Canopy Growth jumped $9.08 to $33.70 on news that Constellation Brand increased its interest in the company with a U.S. $4 billion infusion.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2018/08/clip_image0011-7.png "clip_image001[1]")
Macy's dropped $2.10 to 39.64 after the company reported lower than consensus second quarter sales.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2018/08/clip_image0021-8.png "clip_image002[1]")
Advanced AutoParts (AAP $156.13) is expected to open higher after reporting higher than consensus quarterly results.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2018/08/clip_image0031-8.png "clip_image003[1]")
Hasbro (HAS $98.13) is expected to open higher after MKM Partners upgraded the stock to Buy from Neutral.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2018/08/clip_image0041-7.png "clip_image004[1]")
Observations
TSX Financial Services Index, led by Canada's bank stocks, moved above 306.57 and 306.58 extending an intermediate uptrend. Financials are moving higher in anticipation of strong fiscal third quarter earnings that start appearing next week. Consensus calls for an 8% increase in earnings on a year-over-year basis by Canada's major banks. Also, look for a couple of banks to raise their quarterly dividend.
Solar stocks and their related ETF continue to "lose their shine".
StockTwits Released Yesterday @EquityClock
Home Depot $HD, a Dow Jones Industrial stock moved below $12.12 completing a Head & Shoulders pattern.
Base Metals ETN $DBB moved below $16.15 extending an intermediate downtrend.
Another base metal stock breakdown! First Quantum Minerals $FM.CA moved below $17.70 extending an intermediate downtrend.
CAE Inc. $CAE.CA moved below $26.52 and $26.37 extending a double top pattern.
Technical action by S&P 500 stocks to 10:00: Quietly bullish. Intermediate breakouts: $APD $TPR $AMD. Breakdown: $HD.
Editor's Note: After 10:00 AM EDT, breakouts included NCLH, EVHC, JWN, MCD, M, SBUX and STI. Breakdowns included DO and MU.
Ensign Energy Services $ESI.CA moved above $6.42 extending an intermediate uptrend.
Trader's Corner
Equities and Related ETFs
Daily Seasonal/Technical Equity Trends for August 14th 2018
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for August 14th 2018
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for August 14th 2018
Green: Increase from previous day
Red: Decrease from previous day
S&P 500 Momentum Barometer
The Barometer added 4.60 to 63.20 yesterday. It returned to an intermediate overbought level from an intermediate neutral level, but continues to trend down.
TSX Momentum Barometer
The Barometer added 2.92 to 47.50 yesterday. It remains intermediate neutral and trending down.
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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