Tech Talk for Wednesday February 20th 2019
U.S. equity index futures were mixed this morning. S&P 500 futures were down 2 points in pre-opening trade.
Devon Energy added $1.99 to $30.30 after announcing an additional $5 billion share buyback program The company also increased its dividend.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/02/clip_image0011-9.png "clip_image001[1]")
Wal-Mart (WMT $102.20) is expected to open higher after KeyBanc Capital raised its target price to $120 from $112.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/02/clip_image0021-11.png "clip_image002[1]")
Garmin gained $5.94 to $76.91 after reporting higher than consensus fourth quarter earnings. The company also raised its dividend.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/02/clip_image0031-8.png "clip_image003[1]")
CVS Health dropped $4.31 to $65.57 after reporting lower than consensus fourth quarter revenues.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/02/clip_image0041-9.png "clip_image004[1]")
EquityClock's Daily Market Comment
Following is a link:
http://www.equityclock.com/2019/02/19/stock-market-outlook-for-february-20-2019/
Note seasonality charts on Copper, U.S. Dollar and Freight Shipments
Observations
Encouraging technical action by Greek equities, indices and related ETFs! Nice reverse Head and Shoulders pattern by GREK!
Discouraging technical action by Indian equities, indices and ETFs!
Most commodity prices moved higher yesterday (e.g. gold, silver, copper, zinc). Not so for lumber and grains!
StockTwits Released Yesterday @EquityClock
Technical action by S&P 500 stocks to 10:00: Quiet. One breakout: Freeport McMoran $FCX on a reverse Head & Shoulders pattern. No breakdowns
Editor's Note: After 10:00 AM EST, intermediate breakouts included NBL,APA, WMB, BKNG, ZION, EMN, AMP and FMC.
Gold ETN $GLD moved above $125.23 extending an intermediate uptrend. Ditto for $GDX $GDXJ $XGD.CA
Silver equity ETN $SIL moved above $27.27 extending an intermediate uptrend
First Majestic Silver $AG $FR.CA moved above $8.52 Cdn and $6.50 U.S. completing a base building pattern.
Southern Copper $SCCO, a major South American copper producer moved above $33.68 completing a reverse Head & Shoulders pattern.
Global Base Metals ETF $PICK moved above $29.99 US extending an intermediate uptrend. Ditto for Canadian equivalent $XBM.CA
Materials SPDRs $XLB moved above $54.59 setting an intermediate uptrend.
Saputo $SAP.CA, a TSX 60 stock moved above $41.73 setting an intermediate uptrend.
More Canadian gold stock breakouts: Agnico Eagle $AEM Franco-Nevada $FNV.CA
Canadian National Railway $CNR.CA $CNI, a TSX 60 stock moved above $84.28 U.S. and $111.80 setting an intermediate uptrend.
United Kingdom ETF $EWU moved above $32.23 extending an intermediate uptrend.
Mines and Metals SPDRs $XME moved above $30.97 extending an intermediate uptrend.
Copper futures $COPPER at $2.88 per lb. moved above $2.87 completing a base building pattern. ETN is $JJCTF.
EAFE iShares $EFA moved above $63.81 extending an intermediate uptrend.
Regional Bank ETF $KRE moved above $56.26 extending an intermediate uptrend.
More U.S. energy stock breakouts including oil service stocks: $NBL $APA $WMB $OIH
More Canadian energy breakouts! Vermillion Energy $VET.CA moved above $33.22 completing a reverse Head & Shoulders pattern
Insurance iShares $IAK moved above $63.88 extending an intermediate uptrend.
Trader's Corner.
Equity Indices and related ETFs
Daily Seasonal/Technical Equity Trends for February 19th 2019
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for February 19th 2019
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for February 19th 2019
Green: Increase from previous day
Red: Decrease from previous day
Canadian Bank Fiscal First Quarter Earnings
Quarterly reports by the top six Canadian banks start appearing on Friday and continue next week. Earnings are expected to increase a modest 4.8% on a year-over-year basis. Following are consensus estimates offered by Zachs:
![clip_image002[7]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2019/02/clip_image0027-3.png "clip_image002[7]")
Technical Scoop
Link to David Chapman's weekly report compliments of www.enrichedinvesting.com
http://www.equityclock.com/about/seasonal-advantage-portfolio/
Updates on Previously Supported Seasonal Trades
Favourable technical comments and seasonal charts were offered on lumber and lumber stocks primarily on the breakout by lumber on January 24th at $381.10 per MBtu. Lumber closed yesterday at $397.40, but showed deteriorating short term technical signals (i.e. broke below its 20 day moving average, short term momentum indicators turning down and strength relative to the S&P 500 Index turning negative). Accordingly, lumber and lumber stocks no longer are supported as a seasonal trade. That includes Norbord discussed on January 9th, Interfor discussed on January 10th and West Fraser Timber discussed on January 24th
S&P 500 Momentum Barometer
The Barometer slipped 0.20 to 92.00 yesterday. It remains intermediate overbought.
TSX Momentum Barometer
The Barometer added 2.94 to 90.34 yesterday. It remains intermediate overbought.
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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