Vialoux's Tech Talk: July 18, 2014

by Don Vialoux, Timing the Market

Interesting Charts

Not a good day for the bulls!!

· Malaysian flight 17 was shot down by a missile

· Israel started a ground offensive against the Gaza strip

· The White House was on “lock down” after receiving a suspicious package

· Responses to corporate reports mostly was “Sell on news”

· Technical deterioration by equity indices around the world as well as most sectors was significant. Deterioration was greater in equity markets outside of North America (notably in Europe and Russia)

· Percent of S&P 500 stocks trading above their 50 day moving average plunged

· The VIX Index, better known as the Fear Index, spiked (Up over 32%)

· Treasury bond, gold and aluminum prices spiked.

Technical Action by Individual Equities

Technical action by S&P 500 stocks was active and slightly bearish. Eleven S&P 500 stocks broke resistance and 15 stocks broke support.

Technical action by TSX 60 companies was bullish. Four TSX 60 stocks broke resistance (Enbridge, Metro, Canadian Pacific and George Weston) and one TSX 60 stock broke support (TransAlta).

Mark Leibovit on BNN’s Money Talk

Following is a link:

http://www.bnn.ca/Video/player.aspx?vid=395795

Weekly Technical Review on Select Sector SPDRs

Technology

· Intermediate trend remains up (Score: 1.0)

· Units remain above their 20 day moving average (Score: 1.0)

· Strength relative to the S&P 500 Index remains positive (Score: 1.0)

· Technical score based on the above parameters remains at 3.0 out of 3.0.

· Short term momentum indicators are trending down

Materials

· Intermediate trend remains up.

· Units fell below their 20 day moving average yesterday

· Strength relative to the S&P 500 Index remains neutral

· Technical score remains at 1.5 out of 3.0.

· Short term moment indicators are trending down

Industrials

· Intermediate trend remains down.

· Units remain below their 20 day moving average

· Strength relative to the S&P 500 Index remains negative

· Short term momentum indicators are mixed

Consumer Discretionary

· Intermediate trend remains up

· Units fell below their 20 day moving average yesterday

· Strength relative to the S&P 500 Index changed from positive to neutral

· Technical score fell to 1.5 from 3.0 out of 3.0.

· Short term momentum indicators are trending down

Financials

· Intermediate trend remains up

· Units remain below their 20 day moving average yesterday

· Strength relative to the S&P 500 Index changed from negative to neutral

· Technical score improved to 1.5 from 1.0 out of 3.0

· Short term momentum indicators are trending down

Energy

· Intermediate trend remained down

· Units remained below their 20 day moving average

· Strength relative to the S&P 500 Index improved to neutral from negative

· Technical score improved to 0.5 from 0.0 out of 3.0

· Short term momentum indicators are trending down.

Consumer Staples

· Intermediate trend remains up

· Units fell below their 20 day moving average

· Strength relative to the S&P 500 Index remains neutral

· Technical score fell to 1.5 from 2.5 out of 3.0.

· Short term momentum indicators are trending down.

Health Care

· Intermediate trend remains up

· Units fell below their 20 day moving average

· Strength relative to the S&P 500 Index changed from positive to negative

· Technical score fell to 1.0 from 3.0 out of 3.0

· Short term momentum indicators are trending down.

Utilities

· Intermediate trend remains up

· Units remain below their 20 day moving average

· Strength relative to the S&P 500 Index remains negative

· Technical score remains at 1.0 out of 3.0

· Short term momentum indicators are trending donn

Summary of Weekly Seasonal/Technical Parameters for SPDRs

Key:

Seasonal: Positive, Negative or Neutral on a relative basis applying EquityClock.com charts

Trend: Up, Down or Neutral

Strength relative to the S&P 500 Index: Positive, Negative or Neutral

Momentum based on an average of Stochastics, RSI and MACD: Up, Down or Mixed

Twenty Day Moving Average: Above, Below

Green: Upgrade from last week

Red: Downgrade from last week

Special Free Services available through www.equityclock.com

Equityclock.com is offering free access to a data base showing seasonal studies on individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices. To login, simply go to http://www.equityclock.com/charts/

Following is an example

AEM.TO Relative to the S&P 500

AEM.TO Relative to the Sector

Disclaimer: Comments, charts and opinions offered in this report by www.timingthemarket.ca and 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. Don and Jon Vialoux are Research Analysts with Horizons ETFs Management (Canada) Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons ETFs Management (Canada) Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons ETFs Management (Canada) Inc.

Individual equities mentioned in StockTwits are not held personally or in HAC.

Horizons Seasonal Rotation ETF HAC July 17^th 2014

Copyright © Don Vialoux, Jon Vialoux, Brooke Thackray