Pre-opening Comments for Friday February 24th
U.S. equity index futures were lower this morning. S&P 500 futures were down 48 points in pre-opening trade.
S&P 500 Index futures dropped 20 points following release of economic news at 8:30 AM EST:
January Personal Income was expected to increase 0.9% versus a gain of 0.2% in December. Actual was an increase of 0.6%. January Personal Spending was expected to increase 1.3% versus a drop of 0.2% in December. Actual was an increase of 1.8%.
January Core PCE Price Index was expected to increase 0.4% versus a gain of 0.3% in December. Actual was an increase of 0.6%. On a year-over-year basis, January Core PCE Price Index was expected to increase 4.3% versus a gain of 4.4% in December. Actual was an increase of 4.7%.
Intuit added $1.12 to $413.00 after reporting higher than consensus fourth quarter revenues and earnings.
Carvana dropped $0.20 to $9.88 after reporting lower than consensus fourth quarter revenues.
Beyond Meat advanced $2.22 to $19.36 after the company released higher than consensus fourth quarter revenues. The company also offered positive guidance.
EquityClock’s Daily Comment
Headline reads “Amidst unseasonably mild winter temperatures that have limited demand for heating commodities, the percentage withdrawal of Natural Gas in storage this winter has been the smallest since 2006”.
http://www.equityclock.com/2023/02/23/stock-market-outlook-for-february-24-2023/
Technical Notes
Biotech NASDAQ iShares $IBB moved below $128.06 completing a double top pattern. VanEck Biotech ETF $BBH also completed a double top pattern.
Hong Kong iShares $EWH moved below intermediate support at $20.66.
Ford $F an S&P 100 stock moved below $12.02 setting an intermediate downtrend.
Ross Stores $ROST a NASDAQ 100 stock moved below $112.40 completing a Head & Shoulders pattern.
ANSYS $ANSS a NASDAQ 100 stock moved above $284.79 and $293.58 extending an intermediate uptrend.
Southern Copper $SCCO one of the world’s largest copper producer moved below $71.45 completing a short term Head & Shoulders pattern.
Canadian National Railway $CNR.TO a TSX 60 stock moved below $155.60 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for Feb.24th 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for Feb.24th 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for Feb.23rd 2023
Green: Increase from previous day
Red: Decrease from previous day
Don Vialoux on Michael Campbell’s Money Talks
Don is scheduled as a guest on Michael Campbell’s weekly show tomorrow at 9:00 AM Vancouver time (Noon Toronto Time).
Links offered by valued providers
Have We Seen This Before? | Greg Schnell, CMT | Market Buzz (02.21.23)
https://www.youtube.com/watch?v=i08OZ_IogwE
Will Rising Rates Sink The Stock Market? | Jeffrey Huge, CMT | Your Daily Five (02.23.23)
https://www.youtube.com/watch?v=jUXG3XdhaYU
Diving Into Small Caps Using RRG | Tom Bowley | Trading Places (02.23.23)
https://www.youtube.com/watch?v=2PFQtYvI5Qw
BE CAREFUL! This is serious! (Warren Buffett)
https://www.youtube.com/watch?v=Me3LZSf_VSQ
S&P 500 Momentum Barometers
The intermediate term Barometer added 3.20 to 51.60. It remains Neutral
The long term Barometer added 0.60 to 63.00. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer added 0.42 to 50.85. It remains Neutral.
The long term Barometer was unchanged at 59.32. It remains Neutral. 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 25th, 2023 at 1:44 am
Hello Everyone,
I haven’t seen any comments lately. Just checking if this blog is still alive?
February 25th, 2023 at 8:27 am
Eric Nuttall on Market Call. Well worth the 45 minutes for O&G investors
https://www.bnnbloomberg.ca/market-call/full-episode-market-call-for-friday-february-24-2023~2630945
February 26th, 2023 at 1:16 pm
Dave/AB
Thanks for posting the Eric Nuttall link. Always interesting to hear his viewpoints. The problem I see is that the Cdn oil & gas sector has been drifting sideways for a year now. There is no real direction on the charts for any of the E&P companies I looked at. This shows up in the weekly chart for ZEO.to (Cdn Equal-Weigh Oil & Gas ETF). No reason yet (in my books) to take an entry position. Note the MACD(50,200,10) has just crossed below the signal line (usually not good).
https://schrts.co/DYirkgCn
February 26th, 2023 at 4:02 pm
Greetings all,
Fishfat, thanks for the chart. I agree that the equal weight chart is going nowhere. I understand looking at ZEO rather than XEG since the two names that dominate XEG are CNQ and SU. So I watch them and don’t see any point in buying XEG. I noticed that SU.TO has been outperforming XEG.TO since December and even outperforming CNQ.TO since mid February which it has not done (except very briefly) since last year from late April to late June. I happened to listen to market call and Eric Nuttall who is normally quite negative on it seemed more positive on the new CEO, thought it could double and said “no comment” with a sly smile when asked if he would buy it. Please correct me if I have that wrong but regardless the chart seems potentially quite bullish with a possible cup and handle. It needs to get above ~ 48 for a real trend to begin. Perhaps Ron/BC could correct my lines.
Here is the daily chart:
https://schrts.co/UFKgwkZh
Here is the weekly chart with a comparison to ZEO.TO:
https://schrts.co/YkvQcRUx
February 26th, 2023 at 8:39 pm
I agree with your assessment. We are coming up the more favourable months for the ZEO.TO ETF. A few of the absolute quality stocks like TOU.TO and CNQ.TO are looking attractive too with their dividends and potential growth.
https://stockcharts.com/freecharts/seasonality.php?symbol=zeo.TO&compare=
February 26th, 2023 at 9:51 pm
Paula
You are right about XEG. It is cap-weighted with CNQ and SU together making up nearly 50% of the holdings – hence the reason I prefer ZEO. As for the SU chart, I see the possible Cup & Handle you mentioned, but I think the left and right sides of the cup plus the top of the handle are too dissimilar in height to really make a conventional Cup & Handle. I think the chart may be better described as a symmetrical wedge pattern. I have attached the weekly chart. In any case it does not really matter as neither chart pattern interpretation has broken out. If I had to take a position, I would say that SU was slightly bullish given that the PPO has is above the zero level and has recently crossed above the signal line. Plus the MACD(50,200,10) is rising and above the signal line. But, it is not yet an ideal entry point for me. Worth keeping an eye on though. Hopefully, Ron/BC can provide further insights.
https://schrts.co/UPbrWyeA
February 27th, 2023 at 1:42 am
Paula
Here is SU.to with XEG.to and ZEO.to and CNQ.to overlaid to show the relative strength between them. The chart of SU.to is a Symmetrical Triangle so price direction with it is not in yet. Price has already reached the 3/4 length of the triangle and shouldn’t continue to go into the apex. So price needs to breakout above the downtrendline of the channel to be bullish. The verdict isn’t in yet on that pattern. The RSI 21 is above the 50 line which is positive but price needs to clear that downtrendline to confirm a buy from what I see. (I am concerned about the recession that is developing which historically will trash most everything down the road. Most of the signs of it are already in.) I’ll post the seasonal trend as well.
https://stockcharts.com/h-sc/ui?s=SU.TO&p=D&yr=2&mn=0&dy=0&id=p81394831574&a=734261051
https://stockcharts.com/freecharts/seasonality.php?symbol=SU.TO