Pre-opening Comments for Wednesday December 21st
U.S. equity index futures were higher this morning. S&P 500 futures were up 29 points in pre-opening trade.
The Canadian Dollar was virtually unchanged at US73.44 cents following release of Canada’s November Consumer Price Index at 8:30 AM EST. On a year-over-year basis November CPI was expected to increase 6.7% versus a gain of 6.9% in October. Actual was an increase of 6.8%. Excluding food and energy, consensus was a gain of 4.9%. Actual was an increase of 5.0%
FedEx advanced $5.75 to $170.10 after reporting higher than consensus fiscal second quarter earnings.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/12/clip_image0011-10.png "clip_image001[1]")
BlackBerry slipped $0.07 to US$4.08 after reporting a fiscal third quarter loss.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/12/clip_image0021-13.png "clip_image002[1]")
Nike jumped $13.20 to $116.41 after reporting higher than consensus fiscal second quarter revenues and earnings.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/12/clip_image0031-8.png "clip_image003[1]")
Starbucks dropped $1.02 to $96.98 after Jefferies downgraded the stock from Buy to Hold.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2022/12/clip_image0041-5.png "clip_image004[1]")
EquityClock’s Daily Comment
Headline reads “The Consumer Discretionary sector ETF has broken below the lower limit of a descending triangle pattern, but the more opportune time to short exposure may be following the traditional Santa Claus rally period”.
http://www.equityclock.com/2022/12/20/stock-market-outlook-for-december-21-2022/
Technical Notes
Zoom $ZM a NASDAQ 100 stock moved below $69.54 extending an intermediate downtrend.
IDEXX Laboratories $IDXX a NASDAQ 100 stock moved below $396.75 completing a double top pattern.
Restaurant Brands International $QSR.TO a TSX 60 stock moved below Cdn$87.77 completing a double top pattern.
CCL Industries $CCL.B.TO a TSX 60 stock moved below $57.49 extending an intermediate downtrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for December 20th 2022
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for December 20th 2022
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for December 20th 2021
Green: Increase from previous day
Red: Decrease from previous day
Link offered by a valued provider
Tom Bowley asks “How low will the S&P 500 go”?
https://www.youtube.com/watch?v=0rlgR_Eb_4s
S&P 500 Momentum Barometers
The intermediate term Barometer added 0.60 to 53.20. It remains Neutral.
The long term Barometer slipped 0.20 to 47.80. It remains Neutral .Trend remains down.
TSX Momentum Barometers
The intermediate term Barometer added 4.22 to 46.26. It remains Neutral.
The long term Barometer added 2.95 to 40.93. It changed from Oversold to Neutral on a recovery above 40.00.
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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December 21st, 2022 at 10:26 am
I’m back with my latest rant about media inflation stats.
Media reports that core Cdn YOY CPI “Remains Sticky”. MOM was 0.1 (1.2% annualized)
The reason why YOY core CPI “remains sticky” is that in the previous report the back month of the 12 month average was Nov 2021 which was negative 0.1 which has today been replaced with Dec 2021 which was positive 0.9. The question is whether rates set today should be determined by what took place that far in the past. Those high back months will now drop off the YOY average month after month but the YOY will only gradually decline even with no present monthly inflation. By June the YOY will be quite low.
December 21st, 2022 at 6:30 pm
Oaken Financial just dropped the interest rates they pay on 2yrs and up CDs but are still offering the same 5.25% on a one year rate that can be put into a TFSA account which is tax free. That doesn’t guarantee the one year rate will fall or the longer rates will continue to fall either as the government doesn’t know what they are doing from day to day let alone yearly. They kept rates far too low for far too long and are now scrambling to raise rates on a variety of investments to slow down the economy and inflation. Might as well give kindergarten kids the job for more consistency and common sense. Meanwhile locking in the present one year rate of 5.25% in a TFSA tax free isn’t such a bad idea.