Pre-opening Comments for Wednesday October 23rd
U.S. equity index futures were lower this morning. S&P 500 futures were down 14 points at 8:30 AM EDT.
Bank of Canada issues an economic outlook statement at 9:45 AM EDT. Consensus calls for a 0.50% drop in the Bank’s lending rate.
McDonald’s dropped $21.69 to $293.00 after confirming an E.coli outbreak at 10 of its western U.S. restaurants had infected 49 people and killed one person.
![clip_image001[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/10/clip_image0011-8.png "clip_image001[1]")
Starbucks dropped $3.82 to $93.25 after issuing an earnings warning for its fiscal fourth quarter. The company also withdrew its fiscal 2025 guidance. The stock completed a double top pattern on a move below $94.18.
![clip_image002[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/10/clip_image0021-8.png "clip_image002[1]")
Texas Instruments added $7.24 to $201.21after reporting higher than consensus third quarter results.
![clip_image003[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/10/clip_image0031-6.png "clip_image003[1]")
Enphase dropped $7.23 to $85.00 after reporting less than consensus third quarter results.
![clip_image004[1]](https://timingthemarket.ca/techtalk/wp-content/uploads/2024/10/clip_image0041-5.png "clip_image004[1]")
EquityClock’s Stock Market Outlook for October 23rd
Homebuilding stocks seasonally flourish between now and the spring, but the technicals and fundamentals are not providing the setup to be excited by this trade. See:
https://equityclock.com/2024/10/22/stock-market-outlook-for-october-23-2024/
Technical Notes
Home Builders SPDRs $XHB moved below $119.05 completing a double top pattern.
Weakness in Home Builders was triggered with a drop by DR Horton $DHI) on a move below $181.62 and $181.27 completing a short term Head & Shoulders pattern.
MMM $MMM a Dow Jones Industrial Average stock moved above $140.72 to a three year high following release of better than consensus third quarter results and after offering positive fourth quarter guidance. The stock came under profit taking pressures shortly after release of results.
General Motors $GM an S&P 100 stock moved above $50.37 after reporting higher than consensus third quarter results.
Philip Morris an S&P 100 stock moved above $126.80 to an all-time high extending an intermediate uptrend.
Verizon $VZ a Dow Jones Industrial Average stock moved below $39.07 completing a short term Head & Shoulders pattern. The company reported less than consensus third quarter results.
Danaher $DHR an S&P 500 stock moved below $260.83 completing a double top pattern.
George Weston $WN.TO a TSX 60 stock moved below Cdn$217.34 completing a double top pattern.
Trader’s Corner
Equity Indices and Related ETFs
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 October 22nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for October 22nd 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
CHART THIS with David Keller, CMT Tuesday 10/22/24
https://www.youtube.com/watch?v=sz-6TuG_740
Legendary investor Paul Tudor Jones: I am clearly not going to own any fixed income
Legendary investor Paul Tudor Jones: I am clearly not going to own any fixed income – YouTube
Stock Volatility Ahead? Guy Adami and Dan Nathan
Stock Volatility Ahead? – YouTube
Seasonals have set up a nice cyclical trade from now through 2025, says Renaissance’s Jeff deGraaf
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 5.60 to 66.00. It remains Overbought. Daily trend has turned down.
The long term Barometer dropped 1.80 to 76.00. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer dropped 0.45 to 78.48. It remains Overbought.
The long term Barometer dropped 2.24 to 78.48. 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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October 23rd, 2024 at 6:55 pm
W. Smith,
Thank-you for writing yesterday. I have “retired” from options trading but I still occasionally trade a handful of stocks/etfs. I am not very active anymore since I am finding other interests that are more engaging.
Your friend, David, has an interesting investing strategy. I will have to consider it. At the age of 92, he must have gained some wisdom and enjoyment from being involved in the market.
October 23rd, 2024 at 9:45 pm
Yikes, this story is truly astounding!
“A Sooke, B.C., carpenter who turned $88,000 into $415 million investing in Tesla stocks, only to lose it all in short order, has filed a lawsuit against the Royal Bank of Canada and an accounting firm.”
https://www.cbc.ca/news/canada/british-columbia/man-sues-over-tesla-stocks-1.7343048
October 24th, 2024 at 12:36 am
Wow, Bernie: That is quite a story. I’ve never understood options, I guess you can lose as much as you can gain. You would think that they would suggest diversification.
October 24th, 2024 at 2:35 am
Hi Florence,
I’ve never really understood options either nor have I wanted to learn them but I do hold a handful of covered call ETFs in my accounts. They’re there to add a little diversity and income bump to my conservative dividend growth stock core. Its beyond me to understand how someone could place so much money into one stock and then let it ride recklessly the way the Sooke carpenter did with his Tesla stock. I think his downfall was more about his unabated greed and lack of an exit strategy than it was about bad advice.