Pre-opening Comments for Friday February 10th
U.S. equity index futures were lower this morning. S&P 500 futures were down 19 points in pre-opening trade.
The Canadian Dollar added US0.30 to 74.73 cents after release of Canada’s January employment report at 8:30 AM EST. Consensus was an increase of 15,000 versus a gain of 104,000 in December. Actual was an increase of 150,000. Consensus for the January Unemployment Rate was an increase to 5.2% from 5.0% in December. Actual was unchanged at 5.0%
Lyft plunged $4.14 to $12.08 after reporting less than consensus fourth quarter revenues. The company also lowered guidance.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/02/clip_image0011-5.png "clip_image001[1]")
PayPal added $1.34 to $79.76 after reporting higher than consensus fourth quarter earnings.
Expedia dropped $4.56 to $112.75 after reporting less than consensus fourth quarter results.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/02/clip_image0031-5.png "clip_image003[1]")
Yelp gained $1.85 to $32.70 after reporting higher than consensus fourth quarter revenues.
EquityClock’s Daily Comment
Headline reads “The conditions are present to see the normal pullback of stocks through the remainder of February”.
http://www.equityclock.com/2023/02/09/stock-market-outlook-for-february-10-2023/
Technical Notes
General Motors $GM an S&P 100 stock moved above $42.27 completing a base building pattern.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for Feb.9th 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for Feb.9th 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for Feb.9th 2023
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Lawrence G. McMillan Opinion: Watch the stock market closely now. If the S&P 500 breaks below 4100, the next stop could be 7% lower.
Editor’s Note: The S&P 500 closed yesterday at 4,081.50
Weakness Presents Opportunity | Tom Bowley | Trading Places (02.09.23)
https://www.youtube.com/watch?v=iLRkFyfc1l4
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 5.20 to 62.40. It remains Overbought. Daily trend is down.
The long term Barometer slipped another 2.20 to 68.40. It remains Overbought. Daily trend is down.
TSX Momentum Barometers
The intermediate term Barometer dropped another 4.66 to 61.44. It remains Overbought. Daily trend resumed a downtrend.
The long term Barometer slipped 2.97 to 66.53. It remains Overbought.
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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February 12th, 2023 at 12:30 pm
Cdn Bank ETF, ZEB.to
The weekly chart for ZEB continues to look favourable. Notice the bullish moving average crossover a couple of weeks ago. Also, the PPO is above the zero level and climbing. Last week, price moved above the resistance (at 36.35) on strong volume. Overhead resistance at 37.48 is the next hurdle. I am watching the RON/BC crafted MACD(50,200,10) for a bullish cross of the signal line. A failure to cross the signal line would be concerning and likely change my point of view.
https://schrts.co/SxnQPGmy
February 12th, 2023 at 3:22 pm
FishFat,
Thanks for your weekly ZEB.TO chart. I agree with your observations but on the daily chart (old one of Ron/BC’s) it looks quite over bought with the indicators rolling over. I am more of a reversion to the mean kind of trader rather than a break out trader, so I tend to look for tops and bottoms rather than a continuation of the trend. This means I tend to sell too soon which I probably did with my TD.TO this week. I do own some ZWB, which I will buy more of on weakness since I like the yield. It is more of an investment than a trade. I realize it will underperform if there is a strong trend in the banks, in which case I will probably buy TD, RY or BMO.
https://schrts.co/ZpMZVFeX
https://schrts.co/CGCGpaqK
February 12th, 2023 at 9:35 pm
Paula,
I am not much of a breakout trader either. I mentioned ZEB not because it is at a particularly good entry point, but because it still looks attractive as a hold – at least for now. The ZWB covered call ETF is too sophisticated for me. I have never taken the time to understand options, puts and calls and all the ramifications. Maybe I should. I appreciate the charts you posted, there is always things to learn from others.