Editor’s Note: As Monday is a U.S. holiday, Tech Talk will next appear on Tuesday, May 30th.
Pre-opening Comments for Friday May 26th
Editor’s Note: Next Tech Talk report is released on Tuesday May 30th. Monday is a U.S. holiday and trading activity on the TSX is minimal.
U.S. equity index futures were higher this morning. S&P 500 futures were up 2 points at 8:35 AM EDT.
Lots of economic news released at 8:30 AM EDT! Index futures dropped 6 points on the news.
April Durable Goods Orders were expected to drop 1.1% versus a gain of 2.8% in March. Actual was a gain of 1.1%. Excluding Transportation Orders, April Durable Goods Orders was expected to increase 0.3% versus a gain of 0.3% in March. Actual was an increase of 0.2%
April Core PCE Price Index was expected to increase 0.3% versus a gain of 0.3% in March. Actual was an increase of 0.3%.On a year-over-year basis, core PCE Price Index is expected to increase 4.6% versus a gain of 4.6% in March. Actual was an increase of 4.7%
April Personal Income was expected to increase 0.4% versus a gain of 0.3% in March. Actual was an increase of 0.4%. April Personal Spending was expected to increase 0.5% versus unchanged in March. Actual was an increase of 0.8%
Costco dropped $10.55 to $479.02 after reporting less than consensus fiscal third quarter revenues and earnings.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/05/clip_image0011-11.png "clip_image001[1]")
Marvell advanced $6.73 to $56.28 after reporting higher than consensus first quarter results. The company also raised guidance.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/05/clip_image0021-12.png "clip_image002[1]")
Gap Stores advanced $1.06 to $8.48 after reporting a big improvement in profit margins.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/05/clip_image0031-12.png "clip_image003[1]")
Workday advanced $15.59 to $212.00 after reporting greater than consensus first quarter results.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/05/clip_image0041-7.png "clip_image004[1]")
Canadian Western Bank $CWB.TO is expected to open lower after reporting less than consensus fiscal second quarter earnings.
![clip_image005[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2023/05/clip_image0051.png "clip_image005[1]")
EquityClock’s Daily Comment
Headline reads “Despite substantial downward revisions to prior week’s data, the year-to-date change of jobless claims is still running at the highest pace since the years surrounding the Great Financial Crisis”.
http://www.equityclock.com/2023/05/25/stock-market-outlook-for-may-26-2023/
Technical Notes
U.S. Aerospace iShares $ITA moved below $109.19 completing a double top pattern.
Travelers $TRV a Dow Jones Industrial Average stock moved below intermediate support at $175.82.
NASDAQ 100 stocks moving below intermediate support: Dollar Tree $DLTR moved below $133.38. Gilead $GILD moved below $$76.53. T Mobile $TMUS moved below $136.26 Illumina moved below $190.26.
S&P 100 stocks moving below intermediate support included Bristol-Myers Squibb, General Dynamics, Intel, Raytheon Technologies, Comcast, Emerson Electric, Simon Property and Verizon.
Canadian Bank stocks and related ETFs moved lower following release of lower than consensus fiscal second quarter results. Bank of Montreal $BMO.TO moved below Cdn$112.14 extending an intermediate downtrend.
Dollarama $DOL.TO a TSX 60 stock moved below $81.91 completing a double top pattern.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 25th 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for May 25th 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 25th 2023
Green: Increase from previous day
Red: Decrease from previous day
Source for positive seasonal ratings: www.equityclock.com
Links offered by valued providers
The Pitch | Mark Newton, CMT, Joe Rabil, Dave Landry, Dave Keller, CMT (05.25.23)
https://www.youtube.com/watch?v=Xyo8XTBpQvk
NASDAQ Topping … IMMINENT COLLAPSE Ahead! | Jeffrey Huge, CMT | Your Daily Five (05.25.23)
https://www.youtube.com/watch?v=tFBn7VymaBA
Selling Is Smoke & Mirrors | Tom Bowley | Trading Places (05.25.23)
https://www.youtube.com/watch?v=HaFjpp0b0TA
S&P 500 Momentum Barometers
The intermediate term Barometer slipped 1.20 to 32.00. It remains Oversold, Daily trend is down.
The long term Barometer dropped 1.80 to 41.20. It remains Neutral. Daily trend is down.
TSX Momentum Barometers
The intermediate term Barometer dropped 6.03 to 34.05. It changed from Neutral to Oversold on a move below 40.00. Daily trend continues down.
The long term Barometer slipped 0.43 to 50.43. It remains Neutral. Daily trend continues down.
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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May 27th, 2023 at 2:01 am
Per Kurtis Hemmerling on Linkedin
“My list of 10 lousy investing quotes with ironic twists.”
1) Amazon is 50% undervalued…if it trades at this price 10 years from now.
2) I have 100% average profit on my closed trades…because if it is less, I just leave it open.
3) 100% of my open trades over the past 30 days are winning…because just 5 minutes ago I closed all the losing trades.
4) With this piece of advice you will never lose money in the market again…Don’t invest in the market.
5) 80% of options expire worthless…because the ones that have value are usually exercised or called away.
6) Active investing doesn’t beat passive…as long as active means discretionary and passive includes everything else such as high-frequency algorithmic trading (but not buy and hold – which is what we all think of when we say passive).
7) If you remove the best 10 days…so you should stay invested at all times and for sure get hammered with the 10 worst days too.
8) The stock market is efficient…which is another way of saying you haven’t figured out a strategy that works yet.
9) Warren Buffett is one of the worlds greatest investors…who has generated market-like returns over the past 20 years.
10) Listen to me because I perfectly called the stock market bottom…but with investors making predictions for each day of the year there is 100% chance that someone will be right by chance.
May 29th, 2023 at 8:24 am
I like it. Thanks for sharing, Bernie.