Pre-opening Comments for Wednesday June 5th
U.S. equity index futures were higher this morning. S&P 500 futures were up 14 points at 8:30 AM EDT
Canadian investors are focusing on the Bank of Canada’s economic statement at 9:45 AM EDT. Consensus calls for no change in the Bank’s lending rate for major Canadian banks.
Hewlett Packard Enterprises advanced $2.36 to $19.96 after reporting higher than consensus fiscal second quarter revenues and earnings. The company also offered third quarter guidance above consensus.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0011-1.png "clip_image001[1]")
Crowd Strike added $21.57 to $327.54 after reporting higher than consensus first quarter revenues and earnings. The company also offered second quarter guidance above consensus.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0021-2.png "clip_image002[1]")
Campbell Soup added $0.62 to $44.80 after reporting higher than consensus fiscal third quarter revenues and profits.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0031-1.png "clip_image003[1]")
Dollar Tree dropped $1.44 to $118.86 after revealing damage to its facility caused by a tornado.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/06/clip_image0041-2.png "clip_image004[1]")
EquityClock’s Stock Market Outlook for June 5th 2024
The divergence of the price of oil compared to the average trend of strength over the past couple of months highlighting the market’s skepticism pertaining to the demand profile of the commodity (and the strength of the economy) moving forward.
See: https://equityclock.com/2024/06/04/stock-market-outlook-for-june-5-2024/
Technical Notes
First Trust Natural Gas ETF $FCG moved below $26.35 completing a double top pattern.
BMO Equal Weight Oil and Gas ETF $ZEO.TO moved below $Cdn70.00 completing a double top pattern.
Chevron $CVX a Dow Jones Industrial Average stock moved below $155.47 completing a double top pattern.
Baker Hughes $BKR a NASDAQ 100 stock moved below $31.54 setting an intermediate downtrend.
20+ Treasury Bond iShares $TLT moved above $92.11 setting an intermediate uptrend.
Open Text $OTEX a TSX 60 stock moved below US$27.95 extending an intermediate downtrend
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for June 4th 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 June 4th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for June 4th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
These surprising sectors are showing strength
These SURPRISING Sectors Are Showing Strength – YouTube
Is the AI Trade Coming Undone? Dan Nathan
Is the AI Trade Coming Undone? – YouTube
Canada’s economy is stuck in neutral: RBC
Canada’s economy is stuck in neutral: RBC – YouTube
Live Charts & Trade Ideas: Yields, $TLT, $XLE, Oil, $SMH, $CRWD
Guy Adami, Dan Nathan, Carter Worth
Live Charts & Trade Ideas: Yields, $TLT, $XLE, Oil, $SMH, $CRWD – YouTube
Expectations for rate cuts in Canada: BNN
Expectations for rate cuts in Canada – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 2.00 to 47.20. It remains Neutral.
The long term Barometer slipped 0.80 to 71.00. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer dropped 4.93 to 46.19. It remains Neutral.
The long term Barometer was unchanged at 67.26. 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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June 5th, 2024 at 10:21 am
It was on March 8th that I posted that the NVDA train was leaving the station and the days of purchasing the stock for a triple digit number were fast coming to an end. It went through a consolidation period for a couple of months but here we are pushing $1200 and wouldn’t a lot of people wish they had bought even at the high of that day on March 8th at $974. If you don’t let volatility shake you out this stock has a lot further to go.
June 5th, 2024 at 11:14 am
Larry/ON
Re:#1
That comment reminds me of a wide variety of stocks that went to the moon with nothing but blue sky ahead. They all ultimately sold off sharply and burned a lot of people with tales of grandeur. It reminds me of the old saying, “If it’s too good to be true, it probably is.” Your comment March 8th show NVDA was at a price high at $974 and then fell over $200 per share to $756. We’ll never know how many people got burned for over $200 per share on that selloff before bailing out but I suspect many did as holding onto a plunging stock has never been a good idea regardless of what it did after. Right now the stock is very over extended.Same old story….
https://stockcharts.com/sc3/ui/?s=NVDA&a=1625133329&id=p39236569435
June 5th, 2024 at 12:13 pm
RON/BC – Clearly you ignored the point of the statement I just made. If you can’t handle volatility you clearly shouldn’t own stocks. I held all my stocks through the March 2020 crash and had one of the best performing years of my life. I did not sell a single share of NVDA when it corrected after that peak but instead added to my position in the 880s on the rebound. I have seen your negative posts for years and I can tell you that if anyone acted on them it would be virtually impossible to make any money.
June 5th, 2024 at 5:45 pm
Larry/ON
With your attitude on investing, holding onto falling stocks you must have held the hundreds of high profile stocks that went right off the board to zero. That is financial suicide pure and simple. We all recall the big names of those stocks. Buying at high price points and/or holding onto stocks without a stop loss is not intelligent investing. If you had a sell stop loss in place you could buy at any point without being a technical analyst. But holding onto losers forever with wishful thinking will just make you a loser. No way around it. So don’t expect me to condone irresponsible “so called investing”…………..I will always comment negatively on that type of irresponsible buying and holding. History proves that!