Tech Talk for Wednesday January 3rd 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 3 points in pre-opening trade.

IBM gained $0.63 to $47.26 after RBC Capital upgraded the stock to Outperform from Sector Perform.

Wendy's added $0.13 to $16.45 after SunTrust raised its target price to $22 from $17.

McDonald's advanced $1.02 to $174.24 after SunTrust raised its target price to $205 from $178.

Scana jumped $8.43 to $47.30 after announcing a share exchange merger with Dominion Energy valued at $7.9 billion.

American Express gained $0.31 to $99.25 after Deutsche Bank initiated coverage with a Buy rating

Oracle added $0.63 to $47.26 after Morgan Stanley upgraded the stock to Overweight from Equal Weight.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/01/02/stock-market-outlook-for-january-3-2018/

Note seasonality charts on the Energy sector, Technology sector, Healthcare sector, CRB Index, Shanghai Composite Index and Dow Jones Industrial Average during a Mid-term election year.

Observations

Gold equities and related ETFs soared on continuing U.S. Dollar weakness

Conversely, the Euro closed at a 3 year high.

Zinc prices are following copper and aluminum prices to new multi-year highs.

Strength in the Materials sector (e.g. XLB) is led by strength in the S&P Chemical Index to an all-time high.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quietly mixed. Breakouts: $BDX $IP. Breakdown: $VRSN

Editor's Note: After 10:00 AM EST, breakouts included NFLX, INCY, FRT, AAP and SYK. Breakdowns included: HON, PHM, AWK, HII and IVZ.

China is back! China iShares $FXI moved above $47.42 to a 32 month high extending an intermediate uptrend.

Editor's Note: Hong Kong iShares also moved to an all-time high.

Loblaw $L.CA, a TSX 60 stock moved below $67.47 setting an intermediate downtrend.

Brazil iShares $EWZ moved above $40.92 resuming an intermediate uptrend.

Lithium ETN $LIT moved above $39.50 to an all-time high extending an intermediate uptrend.

Netflix $NFLX, one of the FAANG stocks moved above $199.68 on a Macquarie upgrade.

Telus $T.CA, a TSX 60 stock moved below $47.07 completing a double top pattern.

TSX Energy iShares $XEG.CA moved above $12.33 changing trend.

Biotech ETF $BBH moved above $127.20 completing a short term reverse Head & Shoulders pattern.'Tis the season for strength!

'Tis the season for Biotech stocks and ETFs to move higher prior to the JP Morgan Healthcare Conference: Jan.8-11 this year! $BBH $IBB $FBT

Suncor $SU.CA, a TSX 60 stock moved above $46.66 to a 9 year high extending an intermediate uptrend.

Ensign Energy Services $ESI.CA, a Cdn. oil services stock moved above $6.43 completing a double bottom pattern.

Russell Steel $RUS.CA moved above $29.51 to a 3 year high extending an intermediate uptrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for January 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for January 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for January 2nd 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 3.00 to 75.80 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer added 4.26 to 65.83 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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