Pre-opening Comments for Thursday December 14^th

U.S. equity index futures were higher this morning. S&P 500 futures were up 12 points at 8:35 AM EST.

Index futures were unchanged following release of November Retail Sales at 8:30 AM EST. Consensus called for a decline of 0.1% versus a decline of 0.1% in October. Actual was an increase of 0.3%. Excluding auto sales, consensus called for a decline of 0.1% versus a gain of 0.1% in October. Actual was an increase of 0.2%.

Adobe dropped $34.76 to $589.50 after the company lowered guidance below consensus.

Occidental Petroleum added $1.16 to $58.38 after Berkshire announced additional share purchases.

Moderna gained $7.15 to $85.75 after announcing initial favourable results for a treatment on melanoma.

Empire is expected to open lower after announcing a decline in fiscal second quarter earnings.

 

Responses to FOMC announcement at 2:00 PM EST

FOMC maintained the Fed Fund Rate at 5.25%-5.50%. Federal Reserve Chairman Powell hinted during the press conference at 2:30 PM EST that the Fed Fund Rate is on pause with possibility of declines in 2024 when merited. Reponses after 2:00 PM in key markets were as follows.

U.S. equity indices spiked higher.

The U.S. Dollar Index and its related ETN: UUP plunged

The Canadian Dollar spiked higher.

The yield on long term Treasuries plunged

Conversely, U.S.long term bond prices soared.

Financial services equities and related ETFs soared.

Gold soared.

Gold stocks and related ETFs (e.g.GDX and GDXJ in the U.S.) soared in U.S. and Canadian Dollars.

 

Technical Notes

Dow Jones Industrial Average $INDU moved above 36,952.65 set on January 5^th 2022 to an all-time high extending an intermediate uptrend.

S&P 500 SPDRs $SPY moved above $467.13 to an all-time high extending an intermediate uptrend.

European iShares $IEV moved above $52.13 and $EZU moved above $47.28 extending an intermediate uptrend. Both also are testing their all-time highs set in late 2021.

Global Infrastructure ETF $PAVE moved above $32.66 to an all-time high extending an intermediate uptrend.

Semiconductor iShares $SOXX moved above $548.48 to an all-time high extending an intermediate uptrend.

S&P 100 and NASDAQ 100 stocks moving above resistance extending intermediate uptrends included Apple on a move above $197.70 to an all-time high, Vertex Pharma on a move above $387.42 to an all-time high, Intuit on move above $599.60, Home Depot on a move above $337.85, Walgreens Boots on a move above $24.06, Blackrock on a move above $759.86, Paychex on a move above $127.78, Bank of New York Mellon, Wells Fargo, Gilead and Next Energy on a move above $60.99.

Bank of Nova Scotia $BNS.TO a TSX 60 stock moved above Cdn$61.30 completing a reverse Head & Shoulders pattern.

Bank of Montreal $BMO.TO a TSX 60 stock moved above $Cdn121.43 extending an intermediate uptrend.

 

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for Dec.13^th 2023

Green: Increase from previous day

Red: Decrease from previous day

Source for all positive seasonality ratings: www.EquityClock.com

 

Commodities

Daily Seasonal/Technical Commodities Trends for Dec.13^th 2023

Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for Dec.13^th 2023

Green: Increase from previous day

Red: Decrease from previous day

 

Links offered by valued providers

This Industry Group Outperformed the S&P 500 by OVER 120% in 2023! | The Final Bar (12.12.23)

This Industry Group Outperformed the S&P 500 by OVER 120% in 2023! | The Final Bar (12.12.23) – YouTube

 

Timeless Knowledge and Insights into Sector Rotation & Seasonality | Sector Spotlight (12.12.23

Timeless Knowledge and Insights into Sector Rotation & Seasonality | Sector Spotlight (12.12.23) – YouTube

 

S&P 500 Momentum Barometers

The intermediate term Barometer added 4.60 to 90.00. It remains Overbought. Daily trend is up.

The long term Barometer added 7.00 to 74.80. It remains Overbought. Daily trend is up.

 

TSX Momentum Barometers

The intermediate term Barometer jumped 11.45 to 74.01. It remains Overbought. Daily trend turned up.

The long term Barometer jumped 10.57 to 53.30. 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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