by Don Vialoux, Timing the Market
Interesting Charts
Strength in Agrium, a stock on the “Monitored” list responded to a report by Uralkali that North American demand for potash is expected to rise to 10 million metric tonnes in 2014 matching the record set in 2010.
The Uranium Equity ETF ($URA) moved slightly higher on news that the spot price of uranium increased to $32.50 from $31.00 per lb after Cameco confirmed the shutdown of its McArtther mine. Following is a background:
The technical profile for gold equity indices and related ETFs is improving. They are moving above their 20 day moving average and their momentum indicators are recovering from short term oversold levels. They also are starting to outperform the S&P 500 Index. A basket of gold equities and ETFs were added to our Monitored list yesterday.
Technical action by Chinese equities continues to deteriorate
Seasonal weakness by the Shanghai Composite Index frequently has been a leading indicator to weakness in North American equity markets. Following is a 13 year seasonality chart on the Shanghai Composite Index.
StockTwits Yesterday
· Nice breakout by $UNG above $22.06 to complete a base building pattern. ‘Tis the season for strength!
· $WLP, a healthcare provider broke above $116.50 to an all-time high. ‘Tis the season for strength!
· Technical action to 10:30 AM was mixed. 3 S&P stocks broke resistance: $DPS, $NI, $SRE . 4 stocks broke support: $GRMN, $TMO, $DE, $FCX.
Technical Action in Individual Equities
By the close, three more S&P 500 stocks had broken resistance: BBY, WLP and CMS.
No TSX 60 stocks broke intermediate support or resistance.
FP Trading Desk Headlines
FP Trading Desk headline reads, “
FP Trading Desk headline reads, “Zinc and nickel prices to move dramatically higher in 2015. Following is a link:
Weekly Technical Review of Select Sector SPDRs
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.
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index remains neutral.
· Technical score remains at 2.5 out of 3.0
· Short term momentum indicators are trending up, but are overbought and showing early signs of rolling over.
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 remains at 2.0 out of 3.0
· Short term momentum indicators are trending up, but are overbought and showing early signs of rolling over.
Industrials
· Intermediate trend remains down
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index changed to neutral from positive
· Technical score slipped to 1.5 from 2.0 out of 3.0
· Short term momentum indicators are trending up, but are overbought and showing early signs of rolling over.
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 trending up, but are overbought and showing signs of rolling over.
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 and showing early signs of rolling over.
Energy
· Intermediate trend remains down.
· Units remain above 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 up, but are overbought.
Consumer Staples
· Intermediate trend remains down
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index changed to negative from neutral.
· Technical score slipped to 1.0 from1.5 out of 3.0
· Short term momentum indicators are trending up, but are overbought and showing early signs of rolling over.
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 remains down
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index changed to positive from neutral
· Technical score improved to positive from neutral
· Technical score improved to 2.0 out of 3.0
· Short term momentum indicators are trending up, but are overbought.
Monitored Technical/Seasonal Trade Ideas
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 August 28th 2014
Copyright © Don Vialoux, Jon Vialoux, Brooke Thackray
