Pre-opening Comments for Tuesday September 3rd
U.S. equity index futures were lower this morning. S&P 500 futures were down 30 points at 8:30 AM EDT.
Boeing dropped $5.80 to $167.94 after Wells Fargo downgraded the stock. Target was set at $119.
US Steel dropped $2.50 to $35.71 after Vice President Kamala Harris opposed its takeover by Nippon Steel for $14.1 billion.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/09/clip_image0021.png "clip_image002[1]")
Halliburton dropped $0.23 to $30.86 after the company confirmed that operations were disrupted by a cyberattack.
Sphere dropped $1.70 to $44.90 after Benchmark downgraded the stock.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2024/09/clip_image0041.png "clip_image004[1]")
The Bottom Line
Look for relatively quiet North American equity markets this week. Traders are partially on holidays after returning from the Labor Day holiday weekend. Corporate news is quiet prior to release of third quarter results starting in the second week in September. Economic focus is on Canadian and U.S. August employment reports to be released on Friday. Trading activity is expected to be quieter than normal prior to release of the next FOMC report on September 18th.
Historically, North American equity markets in September have drifted slightly higher until mid-September followed by a shallow correction into mid-October. A similar pattern is followed during U.S. Presidential Election years. Look for history to repeat.
Economic News This Week
Source: www.Investing.com
August ISM Manufacturing PMI released at 10:00 AM EDT on Tuesday is expected to improve to 47.8 from 46.8 in July.
July U.S. Trade released at 8:30 AM EDT on Wednesday is expected to reach a deficit of $74.00 billion versus a deficit of $73.10 billion in June.
July Canadian Trade is released at 8:30 AM EDT on Wednesday.
Bank of Canada’s interest rate policy released at 9:45 AM EDT on Wednesday is expected to lower the Rate offered to major banks from 4.50% to 4.25%. Press conference is offered at 10:30 AM EDT.
Beige Book is released at 2:00 PM EDT on Wednesday.
August ISM Non-Manufacturing PMI released at 10:00 AM EDT on Thursday is expected to increase to 51.5 from 51.4 in July.
U.S. August Non-farm Payrolls released at 8:30 AM EDT on Friday are expected to increase to 163,000 from 114,000 in July. August Unemployment Rate is expected to slip to 4.2% from 4.3% in July. August Hourly Earnings are expected to increase 0.3% from 0.2% in July
Canadian August Employment Report is released at 8:30 AM EDT on Friday.
Selected Earnings News This Week
Source: www.Investing.com
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for August 30th 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 August 30th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for August 30th 2024
Green: Increase from previous day
Red: Decrease from previous day
Chart of the Day: U.S. Crude Oil ETN
Technical score dropped on Friday from +2 to -4 when units dropped below their 20 day moving average, strength relative to the S&P 500 Index turned negative and daily momentum indicators (Stochastics, RSI and MACD) simultaneously turned lower.
Seasonal influences are neutral to mid-October and negative to mid-January. See chart and comment at https://charts.equityclock.com/united-states-oil-fund-lp-nyseuso-seasonal-chart
Technical Notes for Friday
Dollar Tree $DLTR a NASDAQ 100 stock moved below $84.26 to a four year low extending an intermediate downtrend. Second quarter results disappointed!
MongoDB $MDB a NASDAQ 100 stock moved above $268.35 completing a double bottom pattern. Second quarter results exceeded consensus.
Links offered by valued providers
Michael Campbell’s Money Talks for August 31st
Michael Campbell’s MoneyTalks – Complete Show (mikesmoneytalks.ca)
NVDA Earnings Miss Yet Dow Powers Higher: David Keller
NVDA Earnings Miss Yet Dow Powers Higher – YouTube
Critical Market Rotation Gives Us One MAJOR Signal: Tom Bowley
Critical Market Rotation Gives Us One MAJOR Signal – YouTube
We’re Coming to the Most Dangerous Month for Stocks: Mark Leibovit
We’re Coming to the Most Dangerous Month for Stocks – HoweStreet
What Would a Top in Semiconductors Mean for the S&P 500? David Keller
Trading Desk Notes for August 31, 2024: Victor Adair
Trading Desk Notes for September 31, 2024 – HoweStreet
Crude Oil Retreats More Than US$5/b As War Premium Shrinks. WTI Breach Of US$70/b Likely In September: Josef Schachter
Technical Scoop for September 2nd from David Chapman and www.EnrichedInvesting.com
https://enrichedinvesting.com/library/
Changes Last Week
S&P 500 Momentum Barometers
The intermediate term Barometer added 3.00 on Friday and gained 2.20 last week to 82.00. It remains Overbought. Daily uptrend was extended.
The long term Barometer added 1.60 on Friday and gained 1.60 last week to 79.20. It remains Overbought. Daily uptrend was extended.
TSX Momentum Barometers
The intermediate term Barometer added 0.89 on Friday, but dropped 5.76 last week to 66.81. It remains Overbought.
The long term Barometer dipped 0.44 on Friday and dropped 1.32 last week to 74.34. 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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Equity Clock Publications