Pre-opening Comments for Tuesday August 22^nd

U.S. equity index futures were higher this morning. S&P 500 futures were up 25 points at 8:30 AM EDT.

Zoom gained $2.48 to $69.75 after reporting higher than consensus second quarter earnings. The company also raised guidance.

Kenvue, a recent spin off from Pfizer, added $0.15 to $23.05 on news that the stock will replace Advanced Auto Parts in the S&P 500 Index.

Charles Schwab slipped $0.06 to $59.34 after announcing a $500 million cost cutting plans by reducing employee head count.

Dick’s Sporting Goods plunged $28.49 to $118.40 after reporting lower than consensus second quarter results.

 

EquityClock’s Daily Comment

Headline reads “Breadth indicators not yet showing characteristics of a sustainable rising path for stocks”.

https://equityclock.com/2023/08/21/stock-market-outlook-for-august-22-2023/

Technical Notes

Yield on 10 year Treasuries moved above 4.33% to a 15 year high extending an intermediate uptrend.

Utilities SPDRs $XLU moved below intermediate support at $62.66.

Regeneron $REGN a NASDAQ 100 stock moved above $837.55 to an all-time high extending an intermediate uptrend. Biotech stocks such as Regeneron have positive seasonality

McDonalds $MCD a Dow Jones Industrial Average stock moved below intermediate support at $280.00.

Cameco $CCJ a TSX 60 stock moved above US$35.24 to a 12 year high extending an intermediate uptrend.

 

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for August 21^st 2023

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 August 21^st 2023

Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for August 21^st 2023

Green: Increase from previous day

Red: Decrease from previous day

 

Links offered by valued providers

Should You Buy The Dip? Here’s How To Prepare Your Watch List! | The MEM Edge (08.18.23)

Should You Buy The Dip? Here’s How To Prepare Your Watch List! | The MEM Edge (08.18.23) – YouTube

 

Stay Defensive! The Market is Still Vulnerable to More Decline | Your Daily Five (08.21.23)

https://www.youtube.com/watch?v=FH9Mku_uCU0

 

Summer bounce and summer sell off

https://www.marketwatch.com/story/u-s-stocks-may-bounce-this-week-but-summer-selloff-is-only-halfway-done-analysts-warn-2da503c9?mod=home-page

 

Seasonality Chart of the Day

Source: www.EquityClock.com

Regeneron is typical of Biotech stocks and related ETFs that have a period of seasonal strength into September. Biotech ETFs including IBB, BBH and FBT also recorded significant gains yesterday. The sector is benefitting from new discoveries and takeovers

 

Seasonal Chart Analysis

Analysis of the Regeneron Pharmaceuticals, Inc. (NASD:REGN) seasonal charts above shows that a Buy Date of April 30 and a Sell Date of September 21 has resulted in a geometric average return of 14.83% above the benchmark rate of the S&P 500 Total Return Index over the past 20 years. This seasonal timeframe has shown positive results compared to the benchmark in 16 of those periods. This is a very good rate of success and the return strongly outperforms the relative buy-and-hold performance of the stock over the past 20 years by an average of 5.1% per year.

The seasonal timeframe is Inline with the period of seasonal strength for the Healthcare sector, which runs from April 25 to December 4.

 

S&P 500 Momentum Barometers

The intermediate term Barometer slipped 0.20 to 35.20. It remains Oversold. Daily trend remains downs.

The long term Barometer slipped 1.00 to 53.20. It remains Neutral. Daily trend remains down.

 

TSX Momentum Barometers

The intermediate term Barometer added 0.44 to 37.89. It remains Oversold.

The long term Barometer dropped 2.20 to 46.26. It remains Neutral. Daily downtrend 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

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