Pre-opening Comments for Tuesday December 10th
U.S. equity index futures were mixed this morning. S&P 500 futures were unchanged at 8:35 AM EST.
Index futures were unchanged following release of the third quarter U.S. Non-Productivity Report at 8:30 AM EST. Consensus was growth at a 2.2% annual rate versus a downwardly revised 2.2% annual rate in the second quarter. Actual was 2.2%
Oracle dropped $10.80 to $179.65 after reporting less than consensus fiscal second quarter revenues and earnings.
C3ai added $6.02 to $47.70 after announcing a new alliance with Microsoft. Also, second quarter results beat consensus.
MongoDB advanced $28.85 to $378.52 after the company raised guidance.
Casey General Stores dropped $10.16 to $407.95 after reporting less than consensus fiscal second quarter revenues.
EquityClock’s Stock Market Outlook for December 10th
Some volatility/stall in the market over the near-term is reasonable as portfolio managers conduct their year-end trades; the Santa Claus rally period follows. See:
https://equityclock.com/2024/12/09/stock-market-outlook-for-december-10-2024/
Technical Notes
China large cap iShares $FXI jumped above $33.62 after the Chinese government offered fiscal measures to stimulate the economy.
Israel iShares $EIS moved above $76.91 to an all-time high extending an intermediate uptrend.
First Trust Auto ETF $CARZ moved above $56.63 extending an intermediate uptrend. U.S. consumers are buying cars and trucks prior to Trump’s implied 25% tariff on autos and auto parts imported into the U.S.
Trip.com $TCOM a NASDAQ 100 stock moved above $69.67 to an all-time high extending an intermediate uptrend
S&P 100 and NASDAQ 100 stock moving below intermediate support included Abbot Labs (Double top pattern), Raytheon Technologies (Head & Shoulders pattern) and Southern Companies (Head & Shoulders pattern)
CGI Group $GIB.A.TO a TSX 60 stock moved above Cdn$160.59 to an all-time high extending an intermediate uptrend.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for December 9th 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 December 6th 2024
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for December 9th 2024
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
President-elect Trump’s tariffs will be a significant weight on the economy, says Moody’s Mark Zandi
Bank of Canada interest rate outlook
Bank of Canada interest rate outlook – YouTube
Gold rises as China resumes buying
Gold rises as China resumes buying – YouTube
China Finally Delivers What Market Wanted | Markets in 3 Minutes
China Finally Delivers What Market Wanted | Markets in 3 Minutes – YouTube
Most Canadians would avoid buying American post-Trump tariff: Nanos
Most Canadians would avoid buying American post-Trump tariff: Nanos – YouTube
CHART THIS with David Keller, CMT Monday 12/9/24: David Keller
https://www.youtube.com/watch?v=WkvC7bvQ_80
S&P 500 Momentum Barometers
The intermediate term Barometer added 0.60 to 59.00. It remains Neutral.
The long term Barometer added 1.00 to 72.20. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer added 5.02 to 61.64. It returned to Overbought from Neutral on a recovery above. 60.00.
The long term Barometer added 2.28 to 73.06. 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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December 10th, 2024 at 10:51 am
BCE – Don’t own it but it’s interesting watching it try to put in a bottom for 18 trading days. It tagged the declining 20 day MA yesterday reaching a high point but reversed and is getting trashed today. I don’t see any catalyst to spark interest. If we do see a dividend cut that will provoke another substantial decline but that would be the final wash-out creating a good buy-point.
I’m looking at a June 6th Financial Post article saying “BCE looks outright cheap: its shares are trading at their lowest level in the past three, five and 10 years. If its shares simply revert to their prior high in 2022, that provides a 37 per cent return. Add the annual dividend of 8.7 per cent and that return swells to nearly 46 per cent. In contrast, the long-term equity market return is only seven per cent to eight per cent.” That was when BCE was above $46. It has since dropped almost 20%. Any takers? By the way why should BCE or any other stock revert to it’s prior high? The basis of all share price appreciation is rising EPS and BCE ain’t got it but instead has the reverse.
December 10th, 2024 at 11:47 am
Re: Larry
Agree with your views on BCE. Just a reminder that this Friday the 13th is the last day to buy for the divvy. But in the past, BCE was been down a lot more then the divvy paid out.
Globe and Mail had an article this past weekend about a divvy cut being good for the new business model. However, I feel that if they do cut, the shares will drop even more and then would eventually create a good buying opportunity. Looks a lot like AT&T from a few years ago (but share price is still way down from their divvy cut announcement).
Also, BCE expects 30% of their shareholder base to opt into a DRIP (more share dilution) in order to sustain the divvy right now. I dont know who would want to take more shares (2% discount) rather then a cash divvy.
December 10th, 2024 at 12:14 pm
Neil stocks on average tend to drop the amount of the dividend on ex-div day unless they are in a strong uptrend which BCE is not.
I am a scared chicken in this market right now. I don’t want to get whacked. Everything is so high and breadth is starting to decline. Semis are getting trashed. At the same time we are in one of the best performing months of the year. We might go sideways. I think we might get some wild swings where we get a sell-off and then a rush back in. What do I know? This market brings to mind a British program called Banzai! where you place your bets on various bizarre challenges. Place your bets!