Tech Talk for Wednesday August 1st 2018

Pre-opening Comments for Wednesday August 1st

U.S. equity index futures were mixed this morning. S&P 500 futures were unchanged in pre-opening trade despite strength in Apple, highest weighted stock in the Index

Index futures were virtually unchanged following release of the July ADP Private Employment report at 8:15 AM EDT. Consensus was 185,000 additions during the month. Actual was 219,000.

Investors are waiting for news at 2:00 PM EDT on the Fed Fund Rate determined by the FOMC meeting held yesterday and today. Consensus is that the Fed Fund rate will remain unchanged with a bias toward an increase in September.

Apple gained $8.61 to an all-time high at $198.90 after reporting higher than consensus fiscal third quarter earnings. The company also raised its fourth quarter guidance.

Molson Coors slipped $1.00 to $66.00 despite reporting higher than consensus second quarter earnings. The company also mentioned a proposal to introduce cannabis infused beer.

Restaurants International dropped U.S. $1.63 to $61.50 after reporting lower than consensus second quarter revenues.

Cheese Cake Factory plunged $5.63 to $ 50.40 after reporting lower than consensus second quarter results.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/07/31/stock-market-outlook-for-august-1-2018/

Note seasonality charts on the VIX Index, the Utility sector, Canadian GDP and Case/Shiller 20 city price index.

Jim Cramer's comments on gold on CNBC last night

Jim noted that gold and gold stocks have a history of moving higher at this time of year for a seasonal trade to early October. Technicals currently suggest that gold and gold stocks are trying to bottom. Following is a link:

https://www.cnbc.com/2018/07/31/cramers-charts-suggest-gold-could-be-nearing-a-bottom.html

Observations

Dow Jones Transportation Average briefly moved above 11128.35 to reach a six month high. Ditto for its related ETF, IYT!

Strength in Canadian bank stocks pushed the TSX Financial Services ETF, XFN.TO above $38.22 to a six month high. 'Tis the season for strength in the sector to November!

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bullish. Breakouts: $CHD $AMT $AVB $UNM $ETN $JCI $XYL $KLAC. No breakdowns.

Editor's Note: After 10:00 AM EDT, breakouts included MAA, MAC, BEN, MYL, SWK, FTV, ADM and L. Breakdowns included CME, MCO and IPGP

Cdn. Pacific $CP.CA $CP, a TSX 60 stock moved above $257.26 Cdn to an all-time high extending an intermediate uptrend.

Shopify $SHOP $SHOP.CA moved below $140.40 U.S. completing a double top pattern.

BHP Billiton $BHP moved above $52.17 to a 4 year high extending an intermediate uptrend.

Industrial SPDRs $XLI moved above $76.51 setting an intermediate uptrend.

Yamana Gold $YRI.CA $AUY moved above $4.17 Cdn extending an intermediate uptrend.

Trader's Corner

Equities and Related ETFs

Daily Seasonal/Technical Equity Trends for July 31st 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for July 31st 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for July 31st 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer gained 3.80 to 67.80 yesterday. It remains intermediate overbought

TSX Momentum Barometer

The Barometer added 2.93 to 53.56 yesterday. It remains intermediate neutral with a downtrend.

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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