Vialoux's Technical Talk - Sept. 5, 2014

Interesting Charts

Spikes in currency levels are impacting equity and bond markets. The U.S. Dollar spiked higher. The Euro spiked lower following plans by the ECB to launch a Quantitative Easing program.

Strength in the U.S. Dollar Index has a negative impact on the offshore earnings consolidated by U.S. based international companies. The Dow Jones Industrial Average and the S&P 500 Index tried to move to all-time highs, but once again were unable to follow through.

Gold equities were notable casualties of strength in the U.S. Dollar Index. The AMEX Gold Bug Index broke support at 231.34. Many individual gold equities also broke support.

Nickel prices are showing early signs of recovery despite strength in the U.S. Dollar Index.

StockTwits Yesterday

Quiet bullish technical action to 10:30 AM! Six stocks broke resistance: $PVH, $FSLR, $PAYX, $AA, AVY. One stock broke support: $FTI.

Editor’s Note: By the end of the trading day, WAG was added to the list of S&P stocks breaking resistance and MUR, PXD and RRC were added to the list of stocks breaking support.

Among TSX 60 stocks, none broke resistance and POT, COS, ABX and YRI broke support.

Weekly Select Sector Technical Review

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

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 changed to negative from neutral (Score: 0.0).

· Technical score slipped to 2.0 from 2.5 out of 3.0.

· Short term momentum indicators are overbought, have rolled over and have started to trend down

Materials

· Intermediate trend remains up

· Units remain above their 20 day moving average.

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

· Technical score remained at 2.0 out of 3.0.

· Short term momentum indicators are overbought, have started to roll over and are trending down.

Industrials

· Intermediate trend remains down

· Units remain above their 20 day moving average.

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

· Technical score remains at 1.5 out of 3.0

· Short term momentum indicators are overbought, have rolled over and have started to trend down.

Consumer Discretionary

· Intermediate trend remains up

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index remains positive.

· Technical score remains at 3.0 out of 3.0.

· Short term momentum indicators are overbought, have rolled over and have started to trend down.

Financials

· Intermediate trend remains up.

· Units remain above their 20 day moving average.

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

· Technical score remains at 3.0 out of 3.0

· Short term momentum indicators are trending up, but are overbought.

Energy

· Intermediate trend remains down

· Units fell below their 20 day moving average yesterday

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

· Technical score dropped to 0.0 from 1.0 out of 3.0

· Short term momentum indicators are trending down.

Consumer Staples

· Intermediate trend remains down.

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index changed to Neutral from Negative

· Technical score improved to 1.5 from 1.0 out of 3.0

· Short term momentum indicators are trending up, but are overbought

Health Care

· Intermediate trend remains up

· Units remain above their 20 day moving average

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

· Technical score remains at 3.0 out of 3.0

· Short term momentum indicators are trending up, but are overbought

Utilities

· Intermediate trend changed to Neutral from Down on a move above $43.31.

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index remain positive

· Technical score improved to 2.5 from 2.0 out of 3.0

· Short term momentum indicators are trending up, but are overbought.

Monitored Technical/Seasonal Trade Ideas

AAPL was deleted for a profit of 3.59% after its technical score fell below 1.5

FCG was deleted for a loss of 2.22% when its technical score fell below 1.5

The Gold equity sector package was deleted when all stocks in the package fell below at technical score of 1.5.

A security must have a Technical Score of 1.5 – 3.0 to be on this list.

Green: Increased Technical Score

Red: Reduced Technical Score

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 September 4^th 2014