Tech Talk for Wednesday December 19th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 14 points in pre-opening trade. Futures responded to overnight news that the U.S and China will resume trade negotiations in early January.

Investors are waiting for news from the FOMC meeting to be released at 2:00 PM EST. Consensus calls for a 0.25% increase in the Fed Fund rate to 2.50%.

The Canadian Dollar added 0.09 to 74.34 cents U.S. following release of Canada's November Consumer Price Index released at 8:30 AM EST. Consensus called for a year-over year increase of 1.8% versus a gain of 2.4% in October. Actual was a year-over-year increase of 1.7%.

Micron (MU $34.11) is expected to open lower after lowering its sales guidance for 2019.

FedEx fell $14.28 to $170.73 after reporting fiscal second quarter results in line with consensus but also lowering its profit guidance for the remainder of fiscal 2019.

Jabil Circuit added $2.20 to $24.41 after reporting higher than consensus fiscal first quarter sales and earnings.

General Mills added $1.55 to $38.25 after reporting higher than consensus fiscal second quarter earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/12/18/stock-market-outlook-for-december-19-2018/

Note seasonality charts on U.S. Housing Starts, Sales of Manufactured Goods and the Russell 2000 Index.

Observations

Gold stocks and related ETFs responded to greater than average volatility yesterday. The Gold Bug Index moved above $158.93extending an intermediate uptrend.

Emerging markets continue to strength led by India. Nice breakout yesterday by the India ETF PIN above $24.40

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quiet. No intermediate breakouts. Breakdown: $BIIB.

Editor's Note: After 10:00, no intermediate breakouts. Breakdowns: COP, CPRT, DISCK, FISV, TSS, CELG, PBCT, ARNC, UNH, DIS, CVS, PNC, TRV, PFE, ANTM, NLSN, HSIC and CSX

Gasoline ETN $UGA moved below $23.96 extending an intermediate downtrend.

WTI Crude Oil $WTIC moved below $$49.31 extending an intermediate downtrend. $USO

Editor's Note: The oil sensitive Russian ETF also moved lower, below $19.89 extending an intermediate downtrend.

UnitedHealth Group $UNH, a Dow Jones Industrial stock moved below $252.51 setting an intermediate downtrend.

Walt Disney $DIS, a Dow Jones Industrial stock moved below $109.47 extending an intermediate downtrend.

Travelers $TRV, a Dow Jones Industrial stock moved below $118.93 extending an intermediate downtrend.

Health Care SPDRs $XLV moved below $86.27 completing a double top pattern.

Bausch Health $BHC.CA, a TSX 60 stock moved below $28.10 extending an intermediate downtrend.

Empire #Manufacturing Survey showing -3.8 (NSA) in December, stronger than the average read for the month of -6.8. $MACRO #Economy

Canada Manufacturing Sales up 4.6% (NSA) in October, stronger than the 1.5% average increase for the month. $MACRO #CDNecon #CAD

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for December 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for December 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for December 18th 2018

Green: Increase from previous day

Red: Decrease from previous day

Hap Sneddon from CastleMoore

on BNNBloomberg's Market Call Yesterday

Following are links:

Market Outlook

https://www.bnnbloomberg.ca/video/hap-sneddon-s-market-outlook~1567875

Top Picks

https://www.bnnbloomberg.ca/video/hap-sneddon-s-top-picks~1567880

Past Picks

https://www.bnnbloomberg.ca/video/hap-sneddon-s-past-picks~1567879

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S&P 500 Momentum Barometer

The Barometer slipped 1.00 to 15.00 yesterday. It remains intermediate oversold.

TSX Momentum Barometer

The Barometer gained 5.37 to 29.75 yesterday. It remains intermediate oversold.

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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