Pre-opening Comments for Wednesday July 3rd
Next Tech Talk report is released on Friday. U.S. equity markets are closed tomorrow. Trading activity in Canadian equity markets are expected to be low.
U.S. equity index futures were lower this morning. S&P 500 futures were down 7 points at 8:30 AM EDT
U.S. equity markets close today at 1:00 PM EDT.
Gold gained $30.10 to US$2,363.40 per ounce in overnight trade.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0011-1.png "clip_image001[1]")
Eli Lilly gained $3.29 to $910.00 after receiving FDA approval for its Alzheimer drug.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0021-1.png "clip_image002[1]")
Paramount added $1.28 to $12.00 after a bid to buy the company by Skydance has been revived.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0031-1.png "clip_image003[1]")
Tesla advanced $2.65 to $233.91after Wedbush raised its target price to $300.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/07/clip_image0041-1.png "clip_image004[1]")
EquityClock’s Stock Market Outlook for July 3rd
The trend of job openings in the US is reminiscent of the past couple of economic recessions in the US. See:
https://equityclock.com/2024/07/02/stock-market-outlook-for-july-3-2024/
U.S. equity markets
Note that trading closes today at 1:00 PM EDT.
Technical Notes
Consumer Discretionary SPDRs $XLY moved above $184.82 to a 27 month high extending an intermediate uptrend.
Solar ETF $TAN moved below $38.83 to a four year low extending an intermediate downtrend.
Lowe’s $LOW an S&P 100 stock moved below $212.78 extending an intermediate downtrend.
McDonald’s $MCD a Dow Jones Industrial Average stock moved below $247.55 extending an intermediate downtrend.
George Weston $WN.TO a TSX 60 stock moved above $197.83 to an all-time high extending an intermediate uptrend.
BCE $BCE.TO a TSX 60 stock moved below $43.02 to a 32 month low extending an intermediate downtrend.
Telus $T.T0 a TSX 60 stock moved below Cdn$20.17 to a four year low extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 2nd 2024
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 July 2nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July 2nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Market Breadth is Narrowing – Should You Be Worried? Julius de Kempenaer
Market Breadth is Narrowing – Should You Be Worried? – YouTube
AAPL and TSLA Kick Off Q2 With BREAKOUTS! David Keller
AAPL and TSLA Kick Off Q2 With BREAKOUTS! – YouTube
Market is assigning a higher probability of a Trump election win, says Societe Generale’s Rajappa
Stocks could rise another 10% after a strong first half history shows: Market Watch
Citi says the S&P 500 has more upside in H2 and spotlights sectors it prefers
Citi says the S&P 500 has more upside in H2 | Seeking Alpha
Chart Check on S&P, Tesla, Homebuilders & Consumer Discretionary: Dan Nathan, Danny Moses and Carter Worth
Chart Check on S&P, Tesla, Homebuilders & Consumer Discretionary – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer added 5.00 to 46.80. It remains Neutral.
The long term Barometer slipped 0.40 to 66.60. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer advanced 5.75 to 51.77. It remains Neutral. Daily trend is up.
The long term Barometer added 2.21 to 68.58. It remains Overbought. Daily trend is up.
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 3rd, 2024 at 11:55 am
Bman/Van
Re:BMO.TO
Yes, the support line at $118 broke down and all the major moving averages are negative. My thought is price action looks like it will bounce back to $188 resistance. Especially with the positive divergence on the RSI 8 showing price is stronger than it looks. Price is very oversold and I suspect some short covering will occur. Not the best set up in the world but worth a consideration. I’ve often see a chart like this where everyone has thrown in the towel and gotten short and right where they feel good price bounces back. I would think this “should” happen in the next few days. Not the best set up but something to think about………….Seasonally July is the strongest month of the year for BMO.to.
https://stockcharts.com/h-sc/ui?s=BMO.TO&p=D&yr=2&mn=0&dy=0&id=p42292977150&a=673066221
https://stockcharts.com/h-sc/ui?s=BMO.TO&p=D&yr=1&mn=0&dy=0&id=p86973334234&a=1716114899
https://stockcharts.com/freecharts/seasonality.php?symbol=BMO.TO
July 3rd, 2024 at 11:57 am
Bman/Van
Re:#1 should read Bounce back to $118. (not $188)
July 3rd, 2024 at 12:08 pm
Thanks for the insight Ron
July 3rd, 2024 at 1:00 pm
Bman/Van
Many years ago the average person didn’t have a computer to put trades on. I’d just go down to Richardson Securities in Victoria and see my stock broker. He’d communicate with brokers all over North America. I learned a lot from him and his broker friends. I’d be interested in something in the news that was soaring and he’d talk to his broker friends and they’d tell him to forget the stock as all his clients were short the stock and they had deep pockets so could hang in there as prices soared plus they were short and getting shorter each day. Sure enough some “event” would occur and the stock would sell off sharply shaking out many glassy eyed buyers. Worked like a charm. I learned to think like that and it saved me a lot of money over the years. I didn’t have deep pockets so I didn’t like to short stocks making big moves. But I did like shorting regular stocks at key overbought levels as long as the charts showed weakness. So I consulted with him on stocks and he’d call me about what the charts were saying. I miss those days at times.
July 3rd, 2024 at 2:30 pm
MAG 7. AAPL,MSFT, GOOGL new highs. Biggest gainers of the 7 were TSLA and NVDA. I expected or I guess still expect a longer consolidation period for NVDA allowing the 50dayMA to catch up by early August. Quite strong on a light trading day today. For anyone unaware you can hold the MAG 7 in a single ETF – MAGS. US money centre banks doing well. AVGO is the other AI semi play that is rebounding after a correction doing a partial gap fill. MU looks like it hit a reasonable buy point the last couple of days. A