Pre-opening Comments for Friday September 2nd
U.S. equity index futures were higher this morning. S&P 500 futures were up 26 points in pre-opening trade.
U.S. equity index futures moved higher following release of the August Employment Report at 8:30 AM EDT. Consensus for August non-farm Payrolls was a drop to 318,000 from revised 526,000 in July. Actual was 315,000. Consensus for August Unemployment Rate was unchanged from July at 3.5%. Actual was an increase to 3.7%. Consensus for August Average Hourly Earnings was an increase of 0.4% versus a gain of 0.5% in July. Actual was an increase of 0.3%. On a year-over-year basis, consensus for August Average Hourly Earnings was an increase 5.3% versus a gain of 5.2% in July. Actual was an increase of 5.2%.
Lululemon advanced $26.51 to $320.96 after reporting higher than consensus second quarter revenues and earnings. The company also offered positive guidance.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/09/clip_image0011-1.png "clip_image001[1]")
Broadcom gained $10.99 to $503.00 after reporting higher than consensus fiscal third quarter revenues and earnings.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/09/clip_image0021-1.png "clip_image002[1]")
Dow Inc slipped $0.56 to $49.40 after JP Morgan lowered its target price from $60 to $47.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/09/clip_image0031-1.png "clip_image003[1]")
EquityClock’s Daily Comment
Headline reads ”The concerning economic data-points continue to stack up, this time with US Construction Spending showing a very rare July decline”.
http://www.equityclock.com/2022/09/01/stock-market-outlook-for-september-2-2022/
Technical Notes yesterday
U.S. Dollar Index ETN $UUP moved above $29.20 to an all-time high extending an intermediate uptrend.
The Canadian Dollar closed at a 21 month closing low.
Precious metals and related ETFs/equities including GLD, PPLT, GDXJ, XGD.TO and FNV.TO moved below support extending an intermediate downtrend.
NASDAQ 100 stocks moving below intermediate support included CTSH, DOCU, NVDA, OKTA and ZM
S&P 100 stocks moving below intermediate support included PG, FDX and CRM.
TSX 60 equities moving below intermediate support included RCI, YRI.TO, FNV.TO and BNS.TO.
Bausch Health $BHC.TO a TSX 60 stock moved above Cdn$8.46 completing a double bottom pattern.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for September 1st 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for September 1st 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for September 1st 2021
Green: Increase from previous day
Red: Decrease from previous day
Notes offered by valued providers
Tom Bowley says “S&P 500 slips for fourth straight day”
https://www.youtube.com/watch?v=lGKKKgJGmdY
Lawrence McMillan says “The stock market is unrelenting bearish, but still nowhere close to triggering a buy signal”.
S&P 500 Momentum Barometers
The intermediate term Barometer added 1.40 to 44.40 yesterday. It remains Neutral.
The long term Barometer added 1.20 to 30.20 yesterday. It remains Oversold.
TSX Momentum Barometers
The intermediate term Barometer dropped 7.14 to 42.02 yesterday. It remains Neutral. Trend remains down.
The long term Barometer dropped 3.36 to 31.93 yesterday. It remains Oversold. Trend remains down.
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 2nd, 2022 at 12:03 pm
WHAT!!! No one jumping up and down and waving their arms around with today’s rally??? I’m shocked. Even if it’s just a short covering rally on a Friday so they aren’t trapped in their positions over the weekend I’m still surprised. Although the broad market is very oversold and overdue for at least a good bounce back from 3945. I”m sure there is a “story” out there to explain this all ways as usual but price is bouncing off of obvious support.
https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=1&mn=0&dy=0&id=p26607731314&a=1039537764
September 2nd, 2022 at 1:17 pm
It’s a market that seems to want to go down…..I was able to sell my zwb this morning and like many others am standing back now to see what comes next……..
September 2nd, 2022 at 2:36 pm
Bruce
Your ZWB.to seems to track the broad market well. But everything is very oversold and technically due for a bounce back. It may have to test the June/July low first but a bounce is not far away. I don’t have a position yet as I seem to have F.O.L.O. (fear of losing out)
https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=1&mn=0&dy=0&id=p68743115987&a=682178007
https://stockcharts.com/h-sc/ui?s=%24TSX&p=D&yr=3&mn=0&dy=0&id=p62619093820&a=673066492
The one chart I’m still impressed with is VET.to. Don’t see anything wrong with the chart.
https://stockcharts.com/h-sc/ui?s=VET.TO&p=D&yr=1&mn=0&dy=0&id=p48549516957&a=902427462
September 2nd, 2022 at 4:41 pm
tnx Ron…I like to trade zwb when I think we re due for a bounce….if I’m wrong I can collect the .11cent monthly div. and wait it out……yesterday was rediculous at 18.15 yielding what I consider a fairly safe 7.27% div….I thought the employment report would give us at least a short covering rally and it did so I gave it back to them……the charts are horrific with all the m/a s pointing down…the rsi was 27 yesterday when I bought it….
September 2nd, 2022 at 6:07 pm
Bruce
Well I have never fully understood dividends and all their ramifications. We are overdue for a price bounce and we did have a short covering rally right at price support early this morning for those who wanted out and weren’t interested in seeing what the weekend would bring. I can relate. Better to deal with the devil you know than the devil you don’t they say. I was tempted to buy the $SPX and exit myself but have been busy with other things. I would still expect the $SPX to rally off today’s close Monday/Tuesday type of thing as support did not break down. And I suspect a lot of shorts out there that didn’t get out today will try to early next week. And smart money will chase them higher. But overall this is September and I haven’t seem too many bullish ones in the past. And price is still a long,long ways from it’s long term uptrendline as well. Seems like a good market to have an Option Strangle on.
September 3rd, 2022 at 11:40 am
Hi guys,
Here is a long shot on the canadian options M-X.ca BMO march 2024 strike price 160$ 7250 calls for 2$ and 7250 puts at 38.75
So someone is betting BMO will be worth 160$ in march 2024 and went out and bought the call for 2$ so 7250x100x2=1.45 million $ to pay up that amount sold the puts for more than 28 million $ so all in all he bought the calls and received 26.6 million $
WOW we are taking a bet on a long shot oif almost 2 years and being rewarded 26mil for the bet. can I get a piece of it
September 5th, 2022 at 1:59 pm
Hi Tony,
Thanks for posting options re BMO. Few questions/comments:
1. How does one know that it is the same person who bought calls & sold puts?
2. How does one know that he sold calls & did not buy + sold puts & did not buy?
3. What happens if BMO closes 160 OR above 200 in the above case?
4. One can buy 1 call & sell 1 put to get piece of it
Thanks in advance