Next Tech Talk Report
Next report will be offered on Tuesday February 21st. Monday is a holiday (Family Day in Canada and Presidents Day in the U.S.)
Pre-opening Comments for Friday February 17th
U.S. equity index futures were lower this morning. S&P 500 futures were down 27 points in pre-opening trade.
Door Dash advanced $3.62 to $70.51 after reporting higher than consensus fourth quarter earnings.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/02/clip_image0011-9.png "clip_image001[1]")
Moderna dropped $8.81 to $163.50 following release of mixed results for a vaccine against seasonal influenza.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/02/clip_image0021-10.png "clip_image002[1]")
Applied Materials gained $2.61 to $117.40 after reporting higher than consensus fiscal first quarter earnings.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/02/clip_image0031-8.png "clip_image003[1]")
VALE slipped $0.19 to $16.90 after reporting less than consensus fourth quarter earnings.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/02/clip_image0041-7.png "clip_image004[1]")
EquityClock’s Daily Comment
Head line reads “Broad market benchmarks are struggling around last year’s breakdown point as the upside momentum following the recent four month rally wanes”.
http://www.equityclock.com/2023/02/16/stock-market-outlook-for-february-17-2023/
Technical Notes
Cisco $CSCO a Dow Jones Industrial Average stock moved above $50.31 extending an intermediate uptrend. The company reported higher than consensus quarterly results.
Intuitive Surgical $ISRG a NASDAQ 100 stock moved below $238.84 extending an intermediate downtrend.
Xcel Energy $XEL a NASDAQ 100 stock moved below $66.95 extending an intermediate downtrend.
Check Point Software $CHKP a NASDAQ 100 stock moved below $123.46 setting an intermediate downtrend.
Teck Corp $TECK.B.TO a TSX 60 stock moved above Cdn$58.75 to an all-time high extending an intermediate uptrend. The company announced plans to sell its coal division.
Canadian Tire $CTC.A.TO a TSX 60 stock moved above $169.06 extending an intermediate uptrend. The company reported higher than consensus fourth quarter results.
Algonquin Power $AQN.TO a TSX 60 stock moved above $10.18 completing a reverse Head & Shoulder pattern.
Manulife Financial $MFC a TSX 60 stock moved above $26.77 to an all-time high extending an intermediate uptrend. The company announced higher than consensus fourth quarter results and increased its dividend by 11%.
Cenovus $CVE.TO a TSX 60 stock moved below intermediate support at $23.85.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for Feb.16th 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for Feb.16th 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for Feb.16th 2023
Green: Increase from previous day
Red: Decrease from previous day
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 4.40 to 64.60. It remains Overbought.
The long term Barometer dropped 3.40 to 68.80. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer slipped 0.42 to 64.83. It remains Overbought.
The long term Barometer dropped 1.27 to 65.68. It remains Overbought. Trend is 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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February 20th, 2023 at 7:16 pm
This is from Victor Adair. Not unexpected.
The market’s reaction to the February 14 CPI report confirmed the expectation that the Fed will take interest rates higher, and keep them higher for longer than previously thought. The 1-year US Treasury bill yield traded to a 16-year high of ~5.8% this week.
Markets are also pricing the Bank of Canada to push rates another 1/2 point higher by June –even though the BoC announced a “pause” at their last meeting.
Interest rates are rising because 1) inflation is sticky, 2) some economic data (employment, retail sales) is robust, 3) a recession looks less likely, 4) some Fed speakers have indicated a possible 50 bps rise at the next FOMC meeting.