Pre-opening Comments for Thursday May 23rd
U.S. equity index futures were higher this morning. S&P 500 futures were up 37 points at 8:30 AM EDT.
Nvidia jumped $58.83 to an all-time high at $1008.33 after reporting higher than consensus first quarter revenues and earnings. The company also raised second quarter guidance and announced a 10 for 1 stock split effective June 7th
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0011-10.png "clip_image001[1]")
Dupont advanced $3.70 to $82.25 after announcing plans to split the company into three new companies.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0021-9.png "clip_image002[1]")
Snowflake added $7.82 to $171.16 after reporting higher than consensus first quarter revenues.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0031-10.png "clip_image003[1]")
VF Corp dropped $0.97 to $11.36 after reporting less than consensus first quarter revenues.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0041-7.png "clip_image004[1]")
EquityClock’s Highlight for May 23rd
Core-cyclical sectors starting to roll over below their March peaks, emphasizing the risk-aversion that is propagating through the market.
See: https://equityclock.com/2024/05/22/stock-market-outlook-for-may-23-2024/
Technical Notes
S&P Energy Index $SPEN moved below 698.16 extending an intermediate downtrend.
Schlumberger $SLB a NASDAQ 100 stock moved below $46.90 extending an intermediate downtrend.
Intuitive Surgical $ISRG a NASDAQ 100 stock moved above $403.76 to an all-time high extending an intermediate uptrend.
CAE $CAE.TO a TSX 60 stock moved below Cdn$25.35 and Cdn$24.75 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 22nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Source for all positive seasonality ratings: www.EquityClock.com
Commodities
Daily Seasonal/Technical Commodities Trends for May 22nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 22nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Next Canadian Association for Technical Analysis Presentation
Next CATA presentation on Zoom is this evening at 8:00 PM EDT. Presenter is Brooke Thackray. Everyone is welcome. Not a member of CATA? Contact https://canadianata.ca/
Links offered by valued providers
Metals trade shining brightly
Here’s what’s driving the price of copper and other metals higher – YouTube
What happens when the VIX trades below 12%: Guy Adami and Liz Young
Live Market Analysis: $SPY $VIX $DXY $NVDA $TGT – YouTube
Fed minutes indicate worries over the lack of progress on inflation: Steve Leisman
Fed minutes indicate worries over the lack of progress on inflation – YouTube
S&P 500 Momentum Barometers
The intermediate term momentum Barometer dropped 3.20 to 57.40. It changed from Overbought to Neutral on a drop below 60.00. Daily trend has started to trend down.
The long term momentum Barometer dropped 0.40 to 78.40. It remains Overbought.
TSX Momentum Barometers
The intermediate term momentum Barometer plunged 8.07 to 60.54. It remains Overbought. Daily trend has turned down.
The long term momentum Barometer slipped 0.45 to 71.75. It remains Overbought.
Disclaimer: Seasonality ratings 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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May 23rd, 2024 at 9:17 am
NVDA – PT’s being raised this morning with many to $1200 level and up. The anticipated release of the extraordinary Blackwell chip this fall is going to keep investors interested due to prospects of even more earnings and revenue growth. $1100 is not a stretch in the near term. If anything PT’s have all proved to be lower than where the stock ended up going to. The best question I heard put forward by a value manager on CNBC this morning is “Is NVDA’s market share and huge profit margin sustainable?” IMO it’s not at all something to worry about in the next few quarters but going out in a couple of years it is a very important question. What is going on with AI is properly being described as a “new industrial revolution” and NVDA obviously is best equipped to cash in on it.