Pre-opening Comments for Thursday September 1st
U.S. equity index futures were lower this morning. S&P 500 futures were down 22 points in pre-opening trade.
Costco added $1.70 to $523.80 after its August sales rose 11%
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/09/clip_image0011.png "clip_image001[1]")
Walt Disney advanced $1.80 to 113.88 on news that the company is exploring an approach to membership similar to Amazon’s Prime model
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/09/clip_image0021.png "clip_image002[1]")
Okta dropped $7.08 to $84.35 after releasing second quarter results. Mizuho lowered its target price from $150 to $110.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/09/clip_image0031.png "clip_image003[1]")
Nvidia dropped $9.86 to $141.08 after the U.S. government imposed restrictions on certain chip sales to China and Russia.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/09/clip_image0041.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “September is the most volatile month of the year, resulting in an average decline for the S&P 500 Index of 0.6% over the past two decades.”
http://www.equityclock.com/2022/08/31/stock-market-outlook-for-september-1-2022/
Technical Notes Yesterday
Silver ETN $SLV moved below $16.73 extending an intermediate downtrend.
Merck $MRK a Dow Jones Industrial Average stock moved below $86.02 extending an intermediate downtrend.
Procter & Gamble $PG a Dow Jones Industrial Average stock moved below intermediate support at $150.63
AbbVie $ABBV an S&P 100 stock moved below $134.50 extending an intermediate downtrend.
Canadian Tire $CTC.A.TO a TSX 60 stock moved below $157.77 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for August 31st 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for August 31st 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for August 31st 2021
Green: Increase from previous day
Red: Decrease from previous day
Links from valued providers
Link from Mark Bunting and www.uncommonsenseinvestor.com
Hedge Funds’ Three Favourite Blue Chip Stocks – Uncommon Sense Investor
Greg Schnell discusses “A fork in the road”.
Fork In The Road | Greg Schnell, CMT | Market Buzz (08.31.22) – YouTube
Editor’s Note: An excellent review on technicals for equity markets outside of North America
S&P 500 Momentum Barometers
The intermediate term Barometer dropped another 7.60 to 43.00 yesterday. It remains Neutral. Trend remains down.
The long term Barometer dropped another 1.40 to 29.00 yesterday. It remains Oversold, Trend remains down.
TSX Momentum Barometers
The intermediate term Barometer dropped 5.88 to 49.14 yesterday. It remains Neutral. Trend remains down.
The long term Barometer added 0.84 to 35.29 yesterday. It remains Oversold.
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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September 1st, 2022 at 12:57 pm
Scotia has broken below its June low, others will follow eventually and so will all the major market indexes before this is Bear over. Starting to slowly nibble a little on BNS, long term no problems here, but it will go lower and I will add. Coming out of the Bear, just remember that one cannot have a recovery without the participation of the financials.
If one does a 40 year chart on the S&P 500, Sept., Oct. and Nov. are the worse months of the year, Oct hitting the lowest point. I would expect to see a capitulation low in Oct. of this year.
Next week BOC is expected to raise interest rates by 75 basis points on the 7th, some call for 100, we will see. Sept 20-21 the FED meets, and is expected to raise 75 Basis points.
Earlier this year pundits were calling for a 3% rate by the end of this year, this summer it was 4%, now many are talking about a 5% rate. We will see. Better to be more aggressive early than later, when the economy is strong they say, and can take the hit. It takes 6 to 18 months for any rate rise to start having an effect on the economy. They can always cut when they overshoot, which is the usual pattern.
https://stockcharts.com/h-sc/ui?s=BNS.TO&p=D&b=5&g=0&id=p39376434194
September 1st, 2022 at 1:03 pm
Canuck
I bought ZWB this morning at 18.14……..RSI of 27.72 and yielding 7.44%…
September 1st, 2022 at 1:05 pm
make that a yield of 7.27%….
September 1st, 2022 at 2:09 pm
Here is a chart that doesn’t look all that bearish. Nice price action in spite of the commodity selling off and the $TSX plunging. I’m impressed and I’m not often impressed.
https://stockcharts.com/h-sc/ui?s=VET.TO&p=D&yr=1&mn=0&dy=0&id=p39114848350&a=902427462
September 1st, 2022 at 3:21 pm
Here is a 20 year chart of the $TSX. Price is now only 5000 points above its long term uptrendline It was 10,000 points above its long term uptrendline just a few months ago. So we’re getting there! ( It is a little early to jump up and down and wave our arms around.) The good news is financial institutions are paying much higher interest rates on our cash now with even higher rates to come soon enough. Put that in a TFSA GIC and there is no tax to pay. Things are looking up………………..
https://stockcharts.com/h-sc/ui?s=%24TSX&p=W&yr=20&mn=0&dy=0&id=p89030000927&a=1093149596
September 1st, 2022 at 7:35 pm
#5
Well on the close the $TSX was 7000 points above its long term uptrendline.