Pre-opening Comments for Wednesday December 7th
U.S. equity index futures were lower this morning. S&P 500 futures were down 15 points in pre-opening trade.
Index futures eased 3 points following release of revised third quarter U.S. Non-farm Productivity at 8:30 AM EST. Consensus was an increase of 0.7% versus a gain of 0.3% in the second quarter. Actual was an increase of 0.8%.
Bank of Canada’s interest rate to Canada’s major banks to be released at 10:00 AM EST is expected to increase from 3.75% to 4.25%.
MasterCard added $1.79 to $349.32 after the company announced a 16% dividend increase. The company also announced a $9 billion share buyback program.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/12/clip_image0011-3.png "clip_image001[1]")
Pinterest added $0.66 to $23.38 after the company added an Elliott Management executive to its board. Elliott Management is known for its activist agenda on corporate boards.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/12/clip_image0021-4.png "clip_image002[1]")
Micron slipped $0.66 to $53.02 after Wells Fargo lowered its target price from $75 to $70.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/12/clip_image0031-3.png "clip_image003[1]")
EquityClock’s Daily Comment
Headline reads “Rising trendline support stemming from the October low has been violated”.
http://www.equityclock.com/2022/12/06/stock-market-outlook-for-december-7-2022/
Technical Notes
TSX Energy iShares $XEG.TO moved below $16.02 completing a double top pattern. Leading the sector on the downside was Imperial Oil $IMO.TO, a TSX 60 stock, completing a double top pattern on a move below Cdn$72.28. Canadian Natural Resources $CNQ.TO, a TSX 60 stock moved below $76.76 completing a double top pattern.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for December 6th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for December 6th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for December 6th 2021
Green: Increase from previous day
Red: Decrease from previous day
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 5.00 to 78.60. It remains Overbought. Trend has turned down.
The long term Barometer dropped 2.60 to 57.00. It remains Neutral. Trend has turned down.
TSX Momentum Barometers
The intermediate term Barometer plunged 11.02 to 66.95. It remains Overbought. Trend has turned down.
The long term Barometer dropped 3.39 to 47.88. It remains Neutral. Trend has turned 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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December 7th, 2022 at 8:31 am
XOP is already at the 200 day MA. It dipped somewhat below the 200day in July and Sept. Getting close to RSI 30 on XOP and XEG but they could go deeper into oversold before finding support. We need to see WTI show some signs of life. On a long term chart it is down to the 2019 high that it broke out from in July 2021 which would be an important support level and serve as a test of that break.
December 7th, 2022 at 1:48 pm
Is Dec-Jan the seasonality for oil?
Should a bounce be expected here?
https://stockcharts.com/h-sc/ui?s=XOM&p=D&yr=0&mn=10&dy=0&id=p13966898110
Who knows? I think not. MACD hist still falling, RSI not bouncing off 30 yet.
Lesser names looking very ugly, for the longs,
https://stockcharts.com/h-sc/ui?s=VET&p=D&yr=0&mn=10&dy=0&id=p85717819030
December 7th, 2022 at 2:57 pm
Oils downtrend began in Dec? A doji followed by 3 red candles.
Smaller names, vermillion, kelt, cardinal, just crushed in Nov.
https://stockcharts.com/freecharts/candleglance.html?DIG,ERX,XLE,XOM,CVX,VET.TO,CJ.TO,AAV.TO,KEL.TO,TOT.TO,SGY.TO,PEY.TO|B|0
So is Nuttall all nuts?
“Energy is the only game in town”?
“Very high free cash flow yield”
– vermillion, baytex, synovus,meg, athabasca.
https://www.bnnbloomberg.ca/video/if-you-didn-t-have-energy-stocks-on-your-books-this-year-you-massively-underperformed-eric-nuttall~2578417
December 7th, 2022 at 6:58 pm
I have been very heavy on oil names for some time now and feel like these big pullbacks are exhausting! From macro point of view, oil should indeed be much higher but the price action is king.
Recent pullback has shown me that I have a challenging time balancing ‘macro’ and thesis point of view vs practical ‘need to book a profit to make a profit’ (be machine like and trade the charts)
Would appreciate everyones input. Thx