Pre-opening Comments for November 4th
U.S. equity index futures were higher this morning. S&P 500 futures were up 10 points in pre-opening trade.
S&P 500 futures eased 12 points following release of the U.S. October Employment report at 8:30 AM EDT. October U.S. Non-farm Payrolls was expected to drop to 200,000 from 263,000 in September. Actual was 261,000. October Unemployment Rate was expected to increase to 3.6% from 3.5% in September. Actual was an increase to 3.7%. October Average Hourly Earnings were expected to increase 0.3% versus a gain of 0.3% in September. Actual was an increase of 0.4%. On a year-over-year basis, October Average Hourly Earnings was expected to increase 4.7% versus a gain of 5.0% in September. Actual was an increase of 4.7%.
The Canadian Dollar added $0.20 to US73.59 cents following release of the Federal Government’s mini-budget last night and release of Canada’s October Employment report at 8:30 AM EDT. October employment was expected to increase 10,000 versus a gain of 21,100 in September. Actual was an increase of 108,300. October Unemployment Rate was expected to increase to 5.3% from 5.2% in September. Actual was unchanged at 5.2%.
Starbucks $SBUX advanced $1.55 to $86.35 after reporting higher than consensus fiscal fourth quarter earnings.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/11/clip_image0011-2.png "clip_image001[1]")
PayPal $PYPL dropped $4.92 to $71.63 after lowering revenue guidelines for 2022
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/11/clip_image0021-2.png "clip_image002[1]")
Atlassian $TEAM plunged $35.67 to $138.50 after reporting a surprising fiscal second quarter loss. Revenues also were lower than consensus.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/11/clip_image0031-2.png "clip_image003[1]")
Carvana $CVNA dropped $1.35 to $13.00 after the company reported a wider than consensus third quarter loss. Revenues also were lower than consensus.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/11/clip_image0041-2.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “Cyclical sectors of the market are charting fresh 52-week relative highs as technology suffers”.
http://www.equityclock.com/2022/11/03/stock-market-outlook-for-november-4-2022/
Technical Notes for yesterday
Gold ETN $GLD and related equity ETFs moved lower following the Federal Reserve news. GLD moved below $151.03 extending an intermediate downtrend. TSX Gold iShares moved below Cdn$14.31 extending an intermediate downtrend.
Barrick Gold $ABX.TO a TSX 60 stock moved below Cdn$18.83 extending an intermediate downtrend.
Palladium ETN $PALL moved below $165.87 extending an intermediate downtrend.
Fertilizer stocks dropped significantly after Nutrien $NTR reported lower than consensus third quarter results. Nutrien moved below Cdn$107.90 and US$77.78 extending an intermediate downtrend.
Microsoft $MSFT a Dow Jones Industrial Average stock moved below $219.13 extending an intermediate downtrend.
NASDAQ 100 stocks moving below support and extending intermediate downtrends included Cognizant $CTSH, PayPal $PYPL, Intuit $INTU and Qualcomm $QCOM.
Investors Digest
Don Vialoux was asked to offer a “Top Pick” for the next edition of Investors Digest to be released this weekend. Top pick was BMO Base Metals ETF (ZMT.TO).
Link offered by a valued provider
Tom Bowley asks “Does the Fed want a market crash”?
https://www.youtube.com/watch?v=gkhKiK5fPpM
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for November 3rd 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for November 3rd 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for November 3rd 2021
Green: Increase from previous day
Red: Decrease from previous day
Chart of the Day
Communications Services SPDRs (XLC) moved below intermediate support at $46.47 extending an intermediate downtrend. Score on trend changed from Neutral (0) to Down (-2). Strength relative to the S&P 500 remained Negative (Score:-2). Price remained below its 20 day moving average (Score:-1). Daily momentum indicators are trending down (Score:-1). Total score changed from -4 to -6. Largest holdings include META, GOOG, GOOGL and NFLX.
S&P 500 Momentum Barometers
The intermediate term Barometer slipped 0.80 to 49.40. It remains Neutral.
The long term Barometer eased 0.60 to 33.80. It remains Oversold.
TSX Momentum Barometers
The intermediate term Barometer dropped 2.97 to 45.34. It remains Neutral.
The long term Barometer slipped 0.42 to 30.08. 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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November 5th, 2022 at 7:29 pm
EQ Bank is now paying 5.1% on a one year GIC which can be put into a TFSA for a tax free investment. Rates are likely to get that much higher but layering in money on these guaranteed rates is a good bet.
November 5th, 2022 at 8:36 pm
#1 thanks Ron for the info. sounds great for a short term.
November 6th, 2022 at 8:07 am
On the topic of banks, ZEB.to – BMO’s equal weighted Canadian Banks ETF has formed a double bottom basing pattern on the weekly chart. The PPO indicator has recently made a bullish cross of the signal line and there is positive divergence on multiple indicators. These are all encouraging and suggest bullish potential. Seasonality for Canadian banks is generally positive, at least until early December.
https://schrts.co/krNJydfJ
November 6th, 2022 at 12:35 pm
XLE. New high! I am waiting for Monday’s Techtalk
November 6th, 2022 at 1:26 pm
David
Re:#2
Your chart reminds me of an old girl friend I once had………….Thanks.
November 6th, 2022 at 1:28 pm
Ron/BC,
You must be feeling better after your surgery! …smile.
November 6th, 2022 at 1:28 pm
Correction: #5 post Should be for #3 Post from FishFat. Yeah,I know,I’m losing it………..
November 6th, 2022 at 1:31 pm
Still_Learning
It’s taking a lot of time but I think I’m improving somewhat. But like the old saying goes,”Life’s a B…H.”
November 6th, 2022 at 4:28 pm
Ron/BC re:#7 and David #2
Oh, I don’t know, I thought David’s comment in #2….”great for a short term” could apply as well.