Pre-opening Comments for Wednesday January 8th
U.S. equity index futures were higher this morning. S&P 500 futures were up 7 points at 8:30 AM EST.
American Airlines AAR gained $3.76 to $65.51 after reporting higher than consensus second quarter revenues and earnings.
Cal-Maine advanced $5.30 to $108.98 after reporting higher than consensus fiscal second quarter revenues and profits.
Flutter dropped $6.86 to 245.00 after issuing an earnings and revenue warning.
EquityClock’s Stock Market Outlook for January 8th
If seasonal norms for post-election years hold true, we could be in store for another couple of months of dollar and yield strength, presenting a headwind against equity prices. See:
https://equityclock.com/2025/01/07/stock-market-outlook-for-january-8-2025/
Next Tech Talk report
Next report is released on Friday. U.S. equity markets are closed tomorrow and news impacting Canadian equity markets is expected to be minimal.
Technical Notes
Nvidia $NVDA an S&P 100 stock moved above $152.88 to an all-time high extending an intermediate uptrend. The stock subsequently came under profit taking pressures.
Adobe $ADBE an S&P 100 stock moved below $413.97 to an 18 month low extending an intermediate downtrend.
Keurig Dr. Pepper $KDP a NASDAQ 100 stock moved below $30.68 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for January 7th 024
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 January 7th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for January 7th 2024
Green: Increase from previous day
Red: Decrease from previous day
Chart of the Day: U.S. Gold Bullion (GLD)
Technical score increased from 0 to 4 when strength relative to the S&P 500 changed from Neutral to Positive and units moved above their 20 day moving average. Seasonal influences are Positive until April 27th.
Links offered by valued providers
Double Trouble: TSLA and AAPL Downgrades: Schwab Network
Double Trouble: TSLA and AAPL Downgrades – YouTube
Healthy year for market returns despite volatility: BMO Private Wealth strategist
Healthy year for market returns despite volatility: strategist – YouTube
Canadian dollar outlook amid political uncertainty: Strategist at Macquarie
Canadian dollar outlook amid political uncertainty – YouTube
Is Nvidia Nearing "The Danger Zone?" Guy Adami and Dan Nathan
Note comments on Nvidia, Apple and Tesla
Is Nvidia Nearing "The Danger Zone?" – YouTube
Why natural gas may become a popular theme in 2025: Barometer Capital
Why natural gas may become a popular theme in 2025 – YouTube
CHART THIS with David Keller, CMT Tuesday 1/7/25
https://www.youtube.com/watch?v=hla0aLR6sTY
S&P 500 Barometer
The intermediate term Barometer was unchanged at 24.40. It remains Oversold.
The long term Barometer slipped 0.80 to 53.80. It remains Neutral.
Short term (20 day) Barometer added 0.20 to 27.00. It remains Oversold. Daily trend remains up.
TSX Barometer
The intermediate term Barometer dropped 3.59 to 38.12. It changed back from Neutral to Oversold on a return below 40.00.
The long term Barometer was unchanged at 65.92. It remains Overbought.
P.S. The short term (20 day) Barometer dropped 4.04 to 41.70. 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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January 8th, 2025 at 12:38 am
Market still looking shaky this year. Larry, not so sure your ascending triangle on NVIDIA will work, but it shouldn’t matter if you still all in cash. Something better change by the end of this week or with 3 weeks of poor performance it may confirm we are already into a correction.
January 8th, 2025 at 10:31 am
NVDA – It’s looking like a failed break higher. I had a little riding in it and got my knuckles rapped. As RON/BC said “Get out and stay out”.
The effect of bond yields has been widely discussed. 4.5% on the 10 year was considered the level that would be negative for the stock market and we have gone way beyond that to 4.685. There is a US employment report coming out on Friday. If it comes out hot that will sustain higher bond yields which will put more pressure on equities. The market is closed tomorrow for Carter’s funeral so you really have to decide today if you want to be in this market. For me the answer is stay out. I don’t want to give up my 2024 gains.