{"id":176201,"date":"2024-05-06T02:22:00","date_gmt":"2024-05-06T06:22:00","guid":{"rendered":"https:\/\/timingthemarket.ca\/techtalk\/?p=176201"},"modified":"2024-05-06T08:47:21","modified_gmt":"2024-05-06T12:47:21","slug":"tech-talk-for-monday-may-6th-2024","status":"publish","type":"post","link":"https:\/\/timingthemarket.ca\/techtalk\/2024\/05\/06\/tech-talk-for-monday-may-6th-2024\/","title":{"rendered":"Tech Talk for Monday May 6th 2024"},"content":{"rendered":"

Pre-opening Comments for Monday May 6th<\/sup><\/strong><\/font><\/em><\/p>\n

U.S. equity index futures were higher this morning.<\/b> S&P 500 futures were up 22 points at 8:30 AM EDT.<\/em><\/p>\n

WTI crude oil<\/b> advanced $0.79 to $78.89 after Saudi Arabia raised prices on crude oil shipped to Europe and Asia.<\/em><\/p>\n

\"clip_image001\"<\/a><\/p>\n

Freshpet <\/b>added $9.42 to $119.00 after reporting a surprising first quarter revenue and profit gain.<\/em><\/p>\n

\"clip_image002\"<\/a><\/p>\n

TreeHouse Foods<\/b> dropped $1.26 to $36.00 after reporting a first quarter loss<\/em><\/p>\n

\"clip_image003\"<\/a><\/p>\n

Spirit Airlines<\/b> slipped $0.02 to $3.69 after reporting a wider than expected first quarter loss.<\/em><\/p>\n

\"clip_image004\"<\/a><\/p>\n

 <\/p>\n

The Bottom Line<\/strong><\/font><\/p>\n

The Fabulous Four<\/b> (Amazon, Microsoft, Alphabet, Meta) dominated technical action by broadly based U.S. equity indices last week. Higher than consensus quarterly results by these dominant companies prompted analysts to increase significantly first quarter earnings and revenues estimates for the S&P 100 Index and the NASDAQ 100 Index. Their strong earnings gains are expected to continue, but at a lower than previous rate during the remainder of 2024.<\/p>\n

 <\/p>\n

Consensus for Earnings and Revenues for S&P 500 Companies<\/strong><\/font><\/p>\n

Source: www.FactSet.com<\/a><\/p>\n

Higher than consensus first quarter results released to date prompted analysts again to increase significantly their first quarter earnings estimates. <\/b>Eighty Percent of S&P 500 companies have reported to date. Consensus on a year-over-year basis calls for an earnings increase of 5.0% (versus a 3.5% increase last week). Revenues are expected to increase 4.1% (versus a 4.4% increase last week).<\/b><\/p>\n

Earnings gains accelerate in the second and third quarters, but at a slower than previous rate. <\/b>Consensus for the second quarter calls for a 9.6% earnings increase (versus 9.7% last week) and a 4.5% increase in revenues (versus a 4.4% increase last week). Consensus for the third quarter calls for an 8.4% increase in earnings (versus previous 8.6% increase) and a 4.8% increase in revenues (versus a previous 4.9% increase). <\/p>\n

Earnings gains continue in the fourth quarter<\/b>. Consensus for the fourth quarter calls for a 17.8% increase in earnings and a 5.4% increase in revenues (versus previous 4.9%) <\/p>\n

For all of 2024<\/b>, consensus calls for an 11.0% earnings increase (versus previous 10.8% increase) and a 4.9% increase in revenues.<\/p>\n

Earnings estimates for fiscal 2025 were lowered. <\/b>Consensus calls for a 9.5% earnings increase (versus previous 13.9% increase) and a 5.8% revenue increase.<\/p>\n

<\/b><\/p>\n

Economic News This Week<\/strong><\/font><\/p>\n

Source: www.Investing.com<\/a><\/p>\n

Canada\u2019s April Employment Report<\/b> is released at 8:30 AM EDT on Friday. <\/p>\n

May Michigan Consumer Sentiment<\/b> is released at 10:00 AM EDT on Friday<\/p>\n

 <\/p>\n

Selected Earnings News This Week<\/strong><\/font><\/p>\n

Source: www.Investing.com<\/a><\/p>\n

Fifty six S&P 500 companies are scheduled to release quarterly results this week (including one Dow Jones Industrial Average company: Walt Disney)<\/p>\n

Six TSX 60 companies are scheduled to release quarterly results<\/p>\n

\"selected<\/a><\/p>\n

 <\/p>\n

Trader\u2019s Corner<\/strong><\/font><\/p>\n

<\/font><\/strong><\/p>\n

Equity Indices and Related ETFs<\/strong><\/font><\/p>\n

Daily Seasonal\/Technical Equity Trends for May 3rd<\/sup> 2024<\/p>\n

\"spx<\/a><\/p>\n

Green: Increase from previous day<\/font><\/em><\/p>\n

Red: Decrease from previous day<\/em><\/p>\n

Source for all positive seasonality ratings: <\/em>www.EquityClock.com<\/em><\/a><\/p>\n

 <\/p>\n

Commodities<\/strong><\/font><\/p>\n

Daily Seasonal\/Technical Commodities Trends for May 3rd<\/sup> 2024<\/p>\n

\"crb<\/a><\/p>\n

<\/b><\/p>\n

Green: Increase from previous day<\/font><\/em><\/p>\n

Red: Decrease from previous day<\/em><\/p>\n

 <\/p>\n

Sectors <\/strong><\/font><\/p>\n

Daily Seasonal\/Technical Sector Trends for May 3rd<\/sup> 2024<\/p>\n

\"xlk<\/a><\/p>\n

Green: Increase from previous day<\/font><\/em><\/p>\n

Red: Decrease from previous day<\/font><\/em><\/p>\n

<\/em><\/p>\n

Links offered by valued providers<\/strong><\/font><\/p>\n

The BULL Case for BITCOIN: David Keller and Adrian Zdu\u0144czyk<\/b><\/p>\n

The BULL Case for BITCOIN \u2013 YouTube<\/a><\/p>\n

 <\/p>\n

Key Breadth Indicator Flashes Buy Signal for Nasdaq 100: David Keller<\/b><\/p>\n

Key Breadth Indicator Flashes Buy Signal for Nasdaq 100 \u2013 YouTube<\/a><\/p>\n

 <\/p>\n

The Bull Case for Buffett’s Biggest Holding: Apple David Keller<\/b><\/p>\n

The Bull Case for Buffett’s Biggest Holding | The Mindful Investor | StockCharts.com<\/a><\/p>\n

 <\/p>\n

Is this a Dead-Cat Bounce or a Bounce with Legs? Arthur Hill<\/b><\/p>\n

Is this a Dead-Cat Bounce or a Bounce with Legs? | Art’s Charts | StockCharts.com<\/a><\/p>\n

 <\/p>\n

Money Talks with Michael Campbell May 4th<\/sup> editions<\/b><\/p>\n

Michael Campbell\u2019s MoneyTalks \u2013 Complete Show (mikesmoneytalks.ca)<\/a><\/p>\n

 <\/p>\n

Why the TD Bank Could be Fined $100\u2019s of Millions: Bob Hoye<\/b><\/p>\n

Why the TD Bank Could be Fined $100\u2019s of Millions \u2013 HoweStreet<\/a><\/p>\n

 <\/p>\n

US Marijuana Stocks Going Sky High: Mark Leibovit<\/b><\/p>\n

US Marijuana Stocks Going Sky High \u2013 HoweStreet<\/a><\/p>\n

 <\/p>\n

Trading Desk Notes For May 4, 2023: Victor Adair<\/b><\/p>\n

Trading Desk Notes For May 4, 2023 \u2013 HoweStreet<\/a><\/p>\n

 <\/p>\n

Key Breadth Indicator Flashes Buy Signal for Nasdaq 100: David Keller<\/b><\/p>\n

https:\/\/www.youtube.com\/watch?v=wmrEtbTgMwM&t=131s<\/a><\/p>\n

 <\/p>\n

NVIDA is Setting Up To SURGE: Mary Ellen McGonagle<\/b><\/p>\n

https:\/\/www.youtube.com\/watch?v=7Qxk1Ai7aBQ<\/a><\/p>\n

 <\/p>\n

Technical Scoop from David Chapman and <\/b>www.EnrichedInvesting.com<\/b><\/a> <\/b><\/p>\n

https:\/\/enrichedinvesting.com\/wp-content\/uploads\/2024\/05\/Rate-stability-inflation-stick-job-weakness-confidence-wane-market-stimulus-commodity-fall-bank-watch.pdf<\/a><\/p>\n

 <\/p>\n

Technical Scores<\/em><\/strong><\/font><\/p>\n

<\/em><\/font><\/strong><\/p>\n

<\/em><\/b><\/p>\n

Calculated as follows:<\/em><\/b><\/p>\n

<\/em><\/strong><\/p>\n

Intermediate Uptrend based on at least 20 trading days: Score 2<\/em><\/p>\n

          (Higher highs and higher lows)<\/em><\/p>\n

Intermediate Neutral trend: Score 0<\/em><\/p>\n

          (Not up or down)<\/em><\/p>\n

Intermediate Downtrend: Score -2<\/em><\/p>\n

          (Lower highs and lower lows)<\/em><\/p>\n

 <\/p>\n

Outperformance relative to the S&P 500 Index: Score: 2<\/em><\/p>\n

Neutral Performance relative to the S&P 500 Index: 0<\/em><\/p>\n

Underperformance relative to the S&P 500 Index: Score \u20132<\/em><\/p>\n

<\/em><\/p>\n

Above 20 day moving average: Score 1<\/em><\/p>\n

At 20 day moving average: Score: 0<\/em><\/p>\n

Below 20 day moving average: \u20131<\/em><\/p>\n

<\/em><\/p>\n

Up trending momentum indicators (Daily Stochastics, RSI and MACD): 1<\/em><\/p>\n

Mixed momentum indicators: 0<\/em><\/p>\n

Down trending momentum indicators: \u20131<\/em><\/p>\n

<\/em><\/p>\n

Technical scores range from -6 to +6. Technical buy signals based on the above guidelines start when a security advances to at least 0.0, but preferably 2.0 or higher. Technical sell\/short signals start when a security descends to 0, but preferably -2.0 or lower. <\/em><\/p>\n

<\/em><\/p>\n

Long positions require maintaining a technical score of -2.0 or higher. Conversely, a short position requires maintaining a technical score of +2.0 or lower<\/em><\/p>\n

<\/em><\/p>\n

<\/b><\/p>\n

Changes Last Week<\/strong><\/font><\/p>\n

\"changes<\/a><\/p>\n

<\/b><\/p>\n

<\/b><\/p>\n


<\/b><\/p>\n

<\/b><\/p>\n

Technical Notes for Friday<\/strong><\/font><\/p>\n

Far East equity indices and related ETFs continued moving higher. Hong Kong iShares<\/b> $EWH moved above intermediate resistance at $16.92,<\/p>\n

\"image\"<\/a><\/p>\n

Corn ETN<\/b> $CORN moved above $20.44 and $20.69 completing a double bottom pattern. Soybean and Wheat prices also moved significantly higher during the week.<\/p>\n

\"image\"<\/a><\/p>\n

U.S. Aerospace & Defense iShares<\/b> $ITA moved above $132.27 to an all-time high extending an intermediate uptrend. <\/p>\n

\"image\"<\/a><\/p>\n

Apple <\/b>$AAPL a Dow Jones Industrial Average stock moved above $178.36 and $178.67 resuming an intermediate uptrend. <\/p>\n

\"image\"<\/a><\/p>\n

Telus <\/b>$T.TO a TSX 60 stock moved above Cdn$22.42 completing a double bottom pattern. <\/p>\n

\"image\"<\/a><\/p>\n

Magna International<\/b> $MG.TO a TSX 60 stock moved below Cdn$63.32 extending an intermediate downtrend. The company announced less than consensus first quarter results and lowered guidance for 2024.<\/p>\n

\"image\"<\/a><\/p>\n

 <\/p>\n

S&P 500 Momentum Barometers<\/strong><\/font><\/p>\n

\"image\"<\/a><\/p>\n

The intermediate term Barometer added 2.20 on Friday, but dropped 3.40 last week to 43.40. It remains Neutral.<\/p>\n

\"image\"<\/a><\/p>\n

The long term Barometer added 1.20 on Friday, but dropped 1.80 last week. It remains Overbought<\/p>\n

 <\/p>\n

TSX Momentum Barometers<\/strong><\/font><\/p>\n

\"image\"<\/a><\/p>\n

The intermediate term Barometer added 4.91 on Friday and gained 5.35 last week to 60.71. It changed from Neutral to Overbought on a recovery above 60.00.<\/p>\n

\"image\"<\/a><\/p>\n

The long term Barometer slipped 0.45 on Friday and eased 0.44 last week. It remains Overbought.<\/p>\n

 <\/p>\n

Disclaimer:<\/b> Seasonality ratings and technical ratings offered in this report and at<\/em><\/p>\n

www.equityclock.com<\/em><\/a> 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<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Pre-opening Comments for Monday May 6th U.S. equity index futures were higher this morning. S&P 500 futures were up 22 points at 8:30 AM EDT. WTI crude oil advanced $0.79 to $78.89 after Saudi Arabia raised prices on crude oil shipped to Europe and Asia. Freshpet added $9.42 to $119.00 after reporting a surprising first […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-176201","post","type-post","status-publish","format-standard","hentry","category-reports"],"_links":{"self":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts\/176201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/comments?post=176201"}],"version-history":[{"count":3,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts\/176201\/revisions"}],"predecessor-version":[{"id":176212,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts\/176201\/revisions\/176212"}],"wp:attachment":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/media?parent=176201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/categories?post=176201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/tags?post=176201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}