Pre-opening Comments for Friday May 3rd
U.S. equity index futures were higher this morning. S&P 500 futures added 58 points at 8:35 AM EDT
S&P 500 futures added 39 points following release of the U.S. April Employment Report at 8:30 AM EDT. Consensus for April Non-farm Payrolls was a drop to 210,000 from 303,000 in March. Actual was a drop to 175,000. Consensus for the April Unemployment Rate was unchanged from March at 3.8%. Actual was up 0.1 to 3.9%. Consensus for April Average Hourly Earnings was an increase of 0.3% versus a gain of 0.3% in March. Actual was up 0.2%.
Apple advanced $12.12 to $185.15 after reporting higher than consensus fiscal second quarter revenues and earnings. The company also announced the biggest share buyback program in corporate history and increased its dividend.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0011-1.png "clip_image001[1]")
Amgen gained $30.60 to $308.99 after reporting higher than consensus first quarter revenues and earnings. The company also announced test results on its proposed obesity drug.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0021-1.png "clip_image002[1]")
Booking Holdings $327.19 to $3800.10 after reporting higher than consensus first quarter revenues and earnings.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0031-1.png "clip_image003[1]")
Expedia dropped $8.21 to $127.88 after reporting less than consensus quarterly results.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/05/clip_image0041-1.png "clip_image004[1]")
Technical Notes
Emerging Markets iShares $EEM moved above $41.87 to a two year high extending an intermediate uptrend.
Canadian equivalent BMO Emerging Markets ETF $ZEM.TO moved above Cdn$20.55 to a two year high extending an intermediate uptrend.
Asia 50 iShares moved above $62.50 to a 14 month high extending an intermediate uptrend.
India ETF $PIN moved above $27.36 to an all-time high extending an intermediate uptrend.
Qualcomm $QCOM a NASDAQ 100 stock moved above $177.59 to a 26 month high extending an intermediate uptrend.
Metlife $MET an S&P 100 stock moved below $68.58 completing a double top pattern.
Thomson Reuters $TRI.TO a TSX 60 stock moved above Cdn$217.10 to an all-time high extending an intermediate uptrend.
Loblaw Companies $L.TO a TSX 60 stock moved above Cdn$154.70 to an all-time high extending an intermediate uptrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for May 2nd 2024
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 2nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for May 2nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
Market Pops Then Drops on Fed Day: David Keller
Market Pops Then Drops on Fed Day – YouTube
There are ‘very favorable signs’ inflation will come down, says Wharton’s Jeremy Siegel
There are ‘very favorable signs’ inflation will come down, says Wharton’s Jeremy Siegel – YouTube
Markets On Edge – 20 Day MA is Key: Tom Bowley
Markets On Edge – 20 Day MA is Key – YouTube
Veteran investors David Rosenberg and Ed Devlin share their top investing ideas
Veteran investors David Rosenberg and Ed Devlin share their top investing ideas – YouTube
S&P 500 Momentum Barometers
The intermediate term Barometer added 2.00 to 41.20. It changed from Oversold to Neutral on a recovery above 40.00.
The long term Barometer added 1.20 to 71.40. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer added 4.46 to 55.80. It remains Neuttral.
The long term Barometer added 1.79 to 66.96. 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
|
|
May 3rd, 2024 at 12:13 pm
NVDA – I’ve been biding my time waiting for it to get closer to its’ May 22nd earnings release. It’s consolidated nicely over the past eight weeks. Looks like it has broken the short-term downtrend it was in. MACD is crossing over and it is toying with breaking above short-term resistance at 890. We got more “brown shoots” today as Cramer likes to call them pointing to economic softness and thus probable lessening of inflation. Looks like the market correction has passed but I will qualify that by saying I’ve been wrong before.
FFH – I told my finance major son before the market open to read through the earnings report to see why the quarter is down 45% from a year ago. Cash flow was up but there was a mark to market of their bond portfolio. Nothing to worry about but if you don’t look at it you could do a bone head move and sell at the open.
May 3rd, 2024 at 2:56 pm
Anyone looking at TD today? DOJ money laundering probe has shares hitting a 52 week low.
May 3rd, 2024 at 4:06 pm
Neil/ON,
Yes, quite the drop today. Last week was looking promising for a possible breakout of the trading range but this has squashed that possibility. I will let it settle out and may add to my long-term position. This is one of only a handful of stocks that I own long-term. I see it testing the 200EMA on the weekly chart but this could last for a while. The RSI(8) is not below the 30 level yet.
https://schrts.co/zQigcheF
May 3rd, 2024 at 4:12 pm
RE TD.TO
Here is my monthly chart. It has done well and pays a good dividend.
https://schrts.co/jAGXTNVJ
May 3rd, 2024 at 7:06 pm
For those that have a GIC (within a TFSA) or even by itself, keep in mind that the financial institutions that write them up will often renegotiate the rate they now pay as rates are presently lower for one year GICs. I talked to one firm I have a TFSA GIC with today that is coming due now and they did say they would pay a higher rate than they have posted now and match a rate that is about the highest available now at another firm. I refused the offer in the end and just told them to put the money at expiration next week in my account in cash. I’ll decide what to do with it later even with possible lower rates. I have a much larger one coming due next week and another one in August. I never have a problem holding cash regardless. Something always comes up. Once committed your money is locked up for one year. I always recall the old expression “Cash is King.” And that tends to be true much of the time, at least for me.
May 3rd, 2024 at 8:11 pm
Here is a Daily chart of the Equal Weight Bank ETF:ZEB.to. One can see price broke above $35 price resistance last March. This is very bullish for the bank stocks overall. $35 is now price support and does need to hold as support on a pullback. Note TD.to compared to ZEB.to and that chart is not so bullish “relative to ZEB.to.) But TD.to still has a bullish chart on its own.
TD.to has solid support at $70.
https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=D&yr=3&mn=0&dy=0&id=p64543839176&a=678874213
https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=D&yr=3&mn=0&dy=0&id=p64543839176&a=678874213
May 3rd, 2024 at 8:13 pm
RE:#6
Here is the TD.to chart.
https://stockcharts.com/h-sc/ui?s=TD.TO&p=W&yr=5&mn=0&dy=0&id=p64650009220&a=1670129888
May 4th, 2024 at 1:31 pm
Here is a 10 year Weekly chart of the Equal Weight Bank stocks ETF:ZEB.to with the blue Fibonacci levels marked on the chart. Nice looking chart…….as long as $35 holds as support. The Seasonal trend for ZEB.to in May is the strongest month of the year as well.
https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=W&yr=10&mn=0&dy=0&id=p74395345400&a=908450318
https://stockcharts.com/freecharts/seasonality.php?symbol=ZEB.TO
May 4th, 2024 at 2:21 pm
There are a lot of very bullish price breakouts on the price charts!!!!!