Pre-opening Comments for Wednesday July 20^th

U.S. equity index futures were lower this morning. S&P 500 futures were down 10 points in pre-opening trade.

The Canadian Dollar was virtually unchanged at US 77.64 cents following release of Canada’s June Consumer Price Index at 8:30 AM EDT. Consensus was an increase of 1.0% versus a gain of 1.4% In May. Actual was an increase of 0.7%. Year-over-year consensus was an increase of 8.4% versus 7.7% in May. Actual was an increase of 8.1% . Excluding food and energy, year-over-year consensus was an increase of 5.9% versus a gain of 6.1% in May. Actual was an increase of 4.6%.

Netflix gained $15.92 to $217.55 after second quarter results showed less than consensus subscription loss. Stifel Nicolaus upgraded the stock from Hold to Buy.

Baker Hughes slipped $1.26 to $26.96 after reporting less than consensus quarterly results.

Abbott Labs gained $2.06 to $111.99 after reporting higher than consensus second quarter revenues and earnings. The company also offered positive guidance.

Expedia slipped $0.42 to $99.89 after Stifel Nicolaus lowered its target price from $205 to $130.

 

EquityClock’s Daily Comment

 

Headline reads “There is an elevated risk of an aggressive and wide-spread respiratory illness season this year, something that could stand in the way of the normal functioning of the economy through year-end”.

http://www.equityclock.com/2022/07/19/stock-market-outlook-for-july-20-2022/

 

Encouraging Technical News: Broadly Based U.S. Equity Indices Moved Above Their 50 Day Moving Average

Including $SPX, $INDU, $COMPQ, $TRAN and $IWM

 

Technical Notes for yesterday

NASDAQ Composite Index $COMPQ moved above 11,677.49 and 11,689.70 completing a double bottom pattern. NASDAQ 100 Index $NDX moved above 12,175.98 and 12,179.32 completing a double bottom pattern. $NDX is the underlying index for QQQ. Canadian listed ETFs tracking QQQ (i.e. ZQQ.TO, XQQ.TO) also completed double bottom patterns.

Technology SPDRs $XLK moved above $134.27 completing a double bottom pattern.

Meta Platforms $META a NASDAQ 100 stock moved above $172.72 and $171.75 completing an intermediate base building pattern. Qualcomm $QCOM a NASDAQ 100 stock moved above $146.25 extending an intermediate uptrend. Sirius $SIRI a NASDAQ 100 stock moved above $6.41 extending an intermediate uptrend

Semiconductor iShares $SOXX moved above intermediate resistance at $378.44

iShares tracking the Russell 2000 Index moved above $178.15 completing a double bottom pattern.

Midcap SPDRs $MDY moved above $433.07 completing a double bottom pattern.

S&P Bank SPDRs $KBE moved above $45.83 completing a double bottom pattern.

S&P Regional Bank SPDRs $KRE moved above $60.58 completing a double bottom pattern.

U.S. broker iShares $IAI moved above $87.95 completing a double bottom pattern.

MasterCard $MA an S&P 100 stock moved above $336.63 completing a double bottom pattern.

Morgan Stanley $MS an S&P 100 stock moved above $81.22 extending an intermediate uptrend.

Capital One Financial $COF moved above $113.37 completing a double bottom pattern.

Dow Jones Transportation Average and its related ETF $IYT completed double bottom patterns.

Airline ETF $JETS moved above $17.81 completing a double bottom pattern.

Healthcare Providers iShares $IHF moved above $269.02 and $269.28 extending an intermediate uptrend.

Selected big cap non-technology equities also recorded significant breakouts:

Nike $NKE a Dow Jones Industrial Average stock moved above $108.61 completing a short term double bottom pattern. Ford $F an S&P 100 stock moved above intermediate resistance at $12.44 Berkshire Hathaway $BRK.B an S&P 100 stock moved above $282.45 completing a double bottom pattern.

West Fraser Timber moved above $129.30 to an all-time high on news that CVC/Kronospan have given an expression of interest in acquiring the company.

Economic sensitive TSX 60 stocks joined the list of North American equities moving above intermediate resistance levels. Enbridge $ENB.TO a TSX 60 stock moved above intermediate resistance at $55.43.Pembina Pipe $PPL.TO a TSX 60 stock moved above intermediate resistance at 47.00. Brookfield Asset Management $BAM.A.TO a TSX 60 stock moved above $59.68 completing a double bottom pattern. Canadian National Railway moved above intermediate resistance at $61.49

 

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for July 19^th 2022

Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for July 19^th 2022

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for July 19^th 2021

Green: Increase from previous day

Red: Decrease from previous day

All seasonality ratings are based on performance relative to the S&P 500 Index (except TSX)

S&P 500 Momentum Barometers

The intermediate term Barometer jumped 23.20 to 45.60 yesterday. It changed from Oversold to Neutral on a move above 40.00. Trend is up.

The longer term Barometer added 4.20 to 22.20 yesterday. It remains Oversold. Trend is up.

 

TSX Momentum Barometers

The intermediate term Barometer advanced 9.24 to 34.03 yesterday. It remains Oversold. Trend is up.

The long term Barometer added 5.88 to 29.41 yesterday. It remains Oversold. Trend is up.

 

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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