Pre-opening Comments for Wednesday May 21st
U.S. equity index futures were lower this morning. S&P 500 futures were down 35 points at 8:30 AM EDT. Futures responded to news that Israel is planning an attack on Iran’s nuclear facilities.
Toll Brothers added $5.59 to $110.10 after reporting higher than consensus fiscal second quarter revenues. The company also offered positive guidance.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0011-9.png "clip_image001[1]")
Palo Alto dropped $7.48 to $187.00 after reporting third quarter earnings below consensus
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0021-10.png "clip_image002[1]")
Take Two Interactive dropped $8.00 to $229.50 after proposing a $1 billion stock offering.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0031-8.png "clip_image003[1]")
Target dropped $4.42 to $93.70 after reporting less than consensus first quarter results. The company also lowered guidance.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2025/05/clip_image0041-7.png "clip_image004[1]")
EquityClock’s Market Outlook for May 21st
Impact of the US debt downgrade is filtering in, pushing the 30-Year T-Yield above 5% and resulting in a rollover of the US Dollar. See:
https://equityclock.com/2025/05/20/stock-market-outlook-for-may-21-2025/
Technical Notes
Platinum ETN $PPLT moved above $91.91 and $96.38 setting an intermediate uptrend.
Global Water ETF $CGW moved above $60.20 to an all-time high extending an intermediate uptrend.
Vietnam ETF $VNM moved above $12.80, $12.89 and $13.00 setting an intermediate uptrend.
Ford $F an S&P 100 stock moved above $10.82 resuming an intermediate uptrend.
Canadian Imperial Bank of Commerce $CM.TO a TSX 60 stock moved above Cdn$93.38 to an all-time high resuming an intermediate uptrend.
Rogers Communications $RCI.B.TO a TSX 60 stock moved above Cdn$36.19 completing a double bottom pattern..
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 20th 2025
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 May 20th 2025
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 20th 2025
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Not All Price Gaps Are the Same! Here’s What You Need to Know: David Teller
https://www.youtube.com/watch?v=phEJMi4u8-s
Market Call: Eric Nuttall’s outlook on energy stocks
Market Call: Eric Nuttall’s outlook on energy stocks – YouTube
Earnings preview for Canadian banks
Earnings preview for Canadian banks – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer slipped 0.20 to 79.20. It remains Overbought.
The long term Barometer slipped 0.80 to 56.20. It remains Neutral.
TSX Momentum Barometers
The intermediate term Barometer added 5.53 to 83.41. It remains Overbought. Daily uptrend was extended.
The long term Barometer added 3.69 to 69.59. It remains Overbought. Daily uptrend was extended.
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.
|
|
May 21st, 2025 at 7:33 am
Cdn Banks – BMO – Most US exposure – Barometer Capital Management which I follow started buying BMO last week. It is 3.5% away from taking out the high. TD has been making new highs for quite some time and CM just did yesterday. RY is close to a new high. BNS and NA are the laggards. TD is comparatively stretched with moderating price appreciation while BMO looks like it has some room to run. Over the past week CM/RY have been the outperformers and over the past month it has been in order BMO, CM, RY. You have earnings coming out next week for the banks which can cause shifts with a div increase expected at RY and BNS. The BMO analyst picks RY, TD and CM as “defensive” while excluding comment on his own bank. Earnings are not expected to have much growth right now. On a trailing PE ratio basis all of these banks are at or near highs going back five years or more. The dividends are in line with what by memory is a little higher than average for the group but your payout ratios end up being on the high end leaving not much room for increases. I can’t see huge gains going forward and I think expectations should be modest.
May 21st, 2025 at 3:44 pm
Larry, I believe TD’s earnings are tomorrow morning. It has run up a lot lately. Maybe sell on news? But I don’t expect the news to be bad, just maybe not as good as expected.I sold some recently and hoping to buy back some on a pullback.Likely it was a mistake to sell at all.
May 21st, 2025 at 4:14 pm
Thanks for the heads up Paula. I didn’t realize TD was tomorrow. Place your bets!