Pre-opening Comments for Tuesday March 21st
U.S. equity index futures were higher this morning. S&P 500 futures were up 32 points at 8:30 AM EDT.
Economic news released at 8:30 AM EDT could influence opening equity prices in Canada:
February Canadian Consumer Price Index was expected to increase 0.7% versus a gain of 0.5% in January. Actual was an increase of 0.4%. On a year-over-year basis, February CPI was expected to increase 5.4% versus a gain of 5.9% in January. Actual was an increase of 5.2%
The Canadian Dollar slipped 0.02 to US73.14 cents following release of economic news.
![clip_image001[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/03/clip_image0015.png "clip_image001[5]")
First Republic Bank added $1.80 to $13.98 after a consortium of U.S. banks pledged to provide financial support.
![clip_image002[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/03/clip_image0025.png "clip_image002[5]")
Canadian National Railway advanced $2.67 to US$118.00 after reaching an agreement with its Canadian unionized employees.
![clip_image003[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/03/clip_image0035.png "clip_image003[5]")
Canadian Solar gained $3.14 to $39.00 after reporting higher than consensus fourth quarter results.
![clip_image004[5]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/03/clip_image0045.png "clip_image004[5]")
EquityClock’s Daily Comment
Headline reads “Despite the apparent risk aversion in the market over the past couple of weeks, the trend of the High Beta ETF (SPHB) is still looking encouraging given its now larger exposure to growth (eg. Technology)”.
http://www.equityclock.com/2023/03/20/stock-market-outlook-for-march-21-2023/
Technical Notes
Apple $AAPL a Dow Jones Industrial Average stock moved above $157.14 extending an intermediate uptrend.
Pepsico $PEP an S&P 100 stock moved above intermediate resistance at $177.03
PDD Holdings $PDD a NASDAQ 100 stock moved below $81.82 completing a Head & Shoulders pattern.
Thomson Reuters $TRI.TO a TSX 60 stock moved above Cdn$171.12 to an all-time high extending an intermediate uptrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for March 20th 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for March 20th 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for March 20th 2023
Green: Increase from previous day
Red: Decrease from previous day
Source for Seasonal ratings: www.equityclock.com
Link offered by valued provider
5 Bullish Signals Say GET IN NOW! | Tom Bowley | Your Daily Five (03.20.23)
5 Bullish Signals Say GET IN NOW! | Tom Bowley | Your Daily Five (03.20.23) – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer added 5.80 to 26.20. It remains Oversold. Daily trend is up.
The long term Barometer added 7.40 to 46.40. It changed from Oversold to Neutral on a recovery above 40.00. Daily trend is up.
TSX Momentum Barometers
The intermediate term Barometer added 5.11 to 34.89. It remains Oversold. Daily trend is up.
The long term Barometer added 2.55 to 51.91. It remains Neutral.
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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March 21st, 2023 at 4:39 pm
Re: Cdn Banks – There are fundamental factors that haven’t necessarily been fully priced in yet. The Globe printed an analysis from Scotiabank today. Looming questions are variable rate mortgages unable to cover interest payments, higher loan loss provisions and decreased lending due to an economic slowdown, higher rates and tighter guidelines. We need to get through a couple more soft quarters. The economy is about to slow. David Rosenberg has some interesting points about the huge growth of small banks as a percentage of US lending which is where the liquidity problem and instability is.
https://www.theglobeandmail.com/investing/markets/inside-the-market/article-scotiabank-analyst-answers-where-do-canadian-bank-investors-go-from/
https://financialpost.com/investing/banking-crisis-will-be-no-picnic
March 21st, 2023 at 5:02 pm
Having said the above, on a technical basis you can look at oversold banks for a trade on a very short term basis. Keep in mind that all it takes is another liquidity crisis to pop up somewhere to make investors run for the exits because confidence is low. Rate cuts is what we need and it’s not coming yet.