Pre-opening Comments for Wednesday July 12th
U.S. equity index futures were higher this morning. S&P 500 futures were up 32 points at 8:35 AM EDT.
S&P 500 futures jumped 22 points following release of the U.S. June Consumer Price Index at 8:30 AM EDT Consensus was an increase of 0.3% versus a gain of 0.1% in May. Actual was an increase of 0.2%. On a year-over-year basis, June CPI was expected to increase 3.1% versus a gain of 4.0% in May. Actual was an increase of 3.0%. Excluding food and energy, June Consumer Price Index was expected to increase 0.3% versus 0.4% in May. Actual was an increase of 0.2%. On a year-over-year basis, Core June CPI was expected to increase 5.0% versus a gain of 5.3% in May. Actual was an increase of 4.8%.
Bank of Canada updates monetary policy at 10:00 AM EDT on Wednesday. Consensus calls for an increase in the Bank’s rate available for Canada’s major banks from 4.75% to 5.00%.
JP Morgan slipped $0.24 to $147.18 after Citigroup downgraded the stock from Buy to Neutral.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/07/clip_image0011-3.png "clip_image001[1]")
InMode added $1.61 to $42.35 after the company raised second quarter guidance.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/07/clip_image0021-4.png "clip_image002[1]")
Raytheon Technologies added $0.07 to $98.11 after receiving a $5.5 billion contract from the U.S. Air Force.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/07/clip_image0031-1.png "clip_image003[1]")
EquityClock’s Daily Comment
Headline reads “The put-call ratio has fallen to the lowest level since the start of 2022 at the previous market peak”.
http://www.equityclock.com/2023/07/11/stock-market-outlook-for-july-12-2023/
Technical Notes
Swiss Franc $FXF moved above 100.80 to a two year high reflecting weakness in the U.S. Dollar Index
Aerospace & Defense iShares $ITA moved above $117.59 to an all-time high extending an intermediate uptrend.
Russell 2000 iShares $IWM moved above $189.24 extending an intermediate uptrend.
Booking Holdings $BKNG a NASDAQ 100 stock moved above $2,786.85 to an all-time high extending an intermediate uptrend.
O’Reilly Automotive $ORLY moved above $964.58 to an all-time high extending an intermediate uptrend.
Caterpillar $CAT a Dow Jones Industrial Average stock moved above $250.89 extending an intermediate uptrend.
eBay $EBAY a NASDAQ 100 stock moved above $46.54 extending an intermediate uptrend.
Match Group $MTCH a NASDAQ 100 stock moved above $44.50 extending an intermediate uptrend.
Electronic Arts $EA a NASDAQ 100 stock moved above $132.91 and $135.02 extending an intermediate uptrend.
Activision Blizzard $ATVI a NASDAQ 100 stock moved above $87.01 extending an intermediate uptrend. Received approval for the takeover by Microsoft!
Mondelez $MDLZ a NASDAQ 100 stock moved below $71.48 extending an intermediate downtrend.
Coca Cola $KO a Dow Jones Industrial Average stock moved below $58.92 setting an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 11th 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for July 11th 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July 11th 2023
Green: Increase from previous day
Red: Decrease from previous day
Source for positive seasonal ratings: www.equityclock.com
Links offered by valued providers
S&P 500 could surge 100 points this week on inflation data, says Fundstrat’s Lee
Screening For The Strongest Oversold Bullish Stocks | Halftime by Chaikin Analytics (07.10.23)
Is The 10-Year Treasury Yield Topping? | Tom Bowley | Trading Places (07.11.23)
Is The 10-Year Treasury Yield Topping? | Tom Bowley | Trading Places (07.11.23) – YouTube
Nasdaq 100 rebalancing will add volatility to tech earnings, KKM’s Jeff Kilburg
Nasdaq 100 rebalancing will add volatility to tech earnings, KKM’s Jeff Kilburg – YouTube
Jim Grant explains why investors may be getting a ‘whiff of stagflation’ following June’s job report
Gold Forecast Video for 12.07.23 by Bruce Powers
Gold Forecast Video for 12.07.23 by Bruce Powers – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer gained 5.60 to 79.80. It remains Overbought. Daily trend is up.
The long term Barometer added 3.40 to 70.40. It remains Overbought. Daily trend is up.
TSX Momentum Barometers
Intermediate term Barometer added 3.51 to 49.12. It remains Neutral. Daily trend is up.
Long term Barometer slipped 0.88 to 53.07. 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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July 12th, 2023 at 9:50 am
KBE – has broken the neckline Techtalk described for a reverse head and shoulders bottom by clearing 38.17. RSI now overbought on JPM which is now lagging the index this morning. Maybe names like BAC, MS and WFC will do some catch up.
July 12th, 2023 at 9:53 am
LB – Of course I never held it long enough to realize a gain from its’ eventual sale which was anticipated for so long.
July 12th, 2023 at 10:58 am
West Texas Intermediate ($WTIC), weekly chart
WTI had been moving sideways in a trading range for the past eight months. I am encouraged by positive divergence on several indicators which suggests the potential for higher prices. I have drawn in a downtrend (which is total subjective), but may also be encouraging if it is breached this week. I am still waiting for Ron/BC’s Modified MACD (50,200,10) to move above the signal line. Just something to watch.
https://schrts.co/urNubNqY
July 12th, 2023 at 1:13 pm
The Bank of Canada raises rates again. You can get a 1 year GIC that pays 5.50% now from EQ Bank. I have a one year GIC that comes due in early August so the timing is looking good. Put in a TFSA inside a GIC to be tax free makes it an easy investment with no risk.