Pre-opening Comments for Wednesday October 12th
U.S. equity index futures were higher this morning. S&P 500 futures were up 9 points in pre-opening trade.
Index futures moved lower following release of the September Producer Price Index at 8:30 AM EDT. Consensus was an increase of 0.2% versus a drop of 0.1% in August. Actual was an increase of 0.4%. On a year-over-year basis, consensus was an increase of 8.4% versus a gain of 8.7% in August. Actual was an increase of 8.5%. Excluding food and energy, consensus was an increase of 0.3% versus a gain of 0.4% in August. Actual was an increase of 0.3%. On a year-over-year basis, consensus was an increase of 7.3% versus a gain of 7.3% in August. Actual was an increase of 7.2%.
Pepsico added $4.52 to $167.11 after reporting higher than consensus third quarter revenues and earnings. The company also raised guidance.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0011-4.png "clip_image001[1]")
Brookfield Renewable Partners gained $0.03 to US$29.10 and Cameco dropped $3.37 to US$22.45 after reaching an agreement to purchase Westinghouse Electric’ nuclear technology services in a deal valued at $7.88 billion.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/10/clip_image0021-4.png "clip_image002[1]")
EquityClock’s Daily Comment
Headline reads “While both asset classes have been dismal this year, bonds continue to outperform stocks, which has kept the stock market on a sell signal according this metric since the start of the year”.
http://www.equityclock.com/2022/10/11/stock-market-outlook-for-october-12-2022/
Technical Notes for yesterday
NASDAQ Composite Index moved below 10,565.13 extending an intermediate downtrend.
S&P/TSX 60 Index moved below 1,104.88 extending an intermediate downtrend.
TSX Financials iShares $XFN.TO moved below $42.09 extending an intermediate downtrend.
Bank of Montreal $BMO a TSX 60 stock moved below $117.50 extending an intermediate downtrend.
Brookfield Infrastructure $BIP.UN a TSX 60 stock moved below $46.41 extending an intermediate downtrend.
Bausch Health $BHC.TO a TSX 60 stock moved below support at Cdn$9.06 completing a double top pattern.
Netflix $NFLX an S&P 100 stock moved below $214.69 extending an intermediate downtrend.
NASDAQ 100 stocks moving below intermediate support included TCOM, ASML, SNPS, KLAC, ADI and JD.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for October 11th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for October 11th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for October 11th 2021
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Quint Tatro says “People are underestimating how quickly CPI data can fall this year”
People are underestimating how quickly CPI data can fall this year, says Quint Tatro – YouTube
Chart of the Day
Lumber futures recently entered their period of seasonal strength from October 1st to February 5th. Technicals have started to improve. Yesterday, futures moved above their 20 day moving average (Added 2 to score) and strength relative to the S&P 500 Index turned positive from neutral (Add 2 to score). Technical score increased yesterday from -2 to +2. Intermediate trend remains down (Score:-2) and the three daily momentum indicators are trend higher (Score: 2)
S&P 500 Momentum Barometers
The intermediate term Barometer slipped 0.80 to 11.80 yesterday. It remains Oversold.
The long term Barometer added 0.20 to 16.60 yesterday. It remains Oversold.
TSX Momentum Barometers
The intermediate term Barometer plunged 5.08 yesterday. It remains Oversold.
The long term Barometer dropped 2.97 to 21.61 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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October 12th, 2022 at 7:20 am
Thanks Canuck2004 & Ron for your response. I agree a good accountant is very important. I’m happy with mine. Worried he may retire on me.
If plans go accordingly I’m a few yrs away from converting over to a RRIF. Better to take this time to plan ahead. I’m slowly seeing the idea that having GIC or bonds maybe beneficial during turbulent times like this. I’ll keep adding to my blue chip long term holdings as the charts look better.
I do feel we are not out of the woods till sometime next yr.
Cheers
October 12th, 2022 at 8:26 am
Dave/AB
Good thinking Dave. As we both know it’s not whether we can do our taxes or not. Our next door neighbors could do that. It is having an accountant consider everything that is important. And he is the one with credibility, not us. Some people just don’t seem to understand that. Plus he can redo previous years taxes if it’s beneficial to you. I’ve had that done and got some money back from previous years. And any money lost in the market he can use that with “loss carry backs” etc. I also agree we are a long ways from a stock market bottom.
I go for hip surgery today as I got a Victoria time slot that is faster than the Calgary spot I had for late this month. That alone will save me about $30,000. Not a bad savings………….
October 12th, 2022 at 8:42 am
Hello Ron
Thanks for the response. Congrats on the new hip. Now get your golf game back in order. I want to get out to the Island and pay a round with you and Bernie. I have been thinking of treating myself to a set of PXGs
October 12th, 2022 at 9:07 am
Ron/BC, all the best for your hip surgery. Wish you a speedy recovery and a quick return the golf course.
October 12th, 2022 at 10:19 am
RON/BC – Best wishes for your surgery.
Banks – I’m just marvelling at the size of the drop. BMO is down over 25% since its’ March peak. As Tech Talk has pointed out BMO and others have broken important support. How far do they go?
October 12th, 2022 at 10:23 am
bon chance Ron….we ll be thinking of you..
October 12th, 2022 at 11:13 am
Ron/BC
Excellent news re your hip surgery, Ron. From the time I entered Royal Victoria Hospital to the moment I left after my knee replacement I had nothing but the best attention possible. I trust you will receive the same.
October 12th, 2022 at 1:01 pm
RonBC – all the best with your surgery. I had two friends that came through it with flying Colors in the Okanagan.
Banks – i too would be interested in all comments about the Cdn banks at this point.
Thank you
October 12th, 2022 at 3:50 pm
Curious to know everyones thoughts on utilities like FTS and EMA? Dividend darlings have been sliding down…. I dont have much of dividend portfolio so thinking this maybe a chance to start positions in FTS for example. Thx.