Vialoux's Technical Talk - Sept. 24, 2014

by Don Vialoux, EquityClock.com

Pre-opening Comments for Wednesday September 24^th

U.S. equity index futures were higher this morning. S&P 500 futures were up 4 points in pre-opening trade.

Morgan Stanley fell $0.21 to $34.81 after JP Morgan downgraded the stock from Overweight to Neutral. Target is $34.

Wells Fargo launched coverage on the oil services sector. Nabors and Helmrich & Payne were initiated at Outperform. National Oilwell Varco was initiated at Market Perform.

Rio Tinto added $0.83 to $51.76 after Morgan Stanley upgraded the stock from Equal Weight to Overweight.

KB Homes dropped $0.91 to $16.06 after reporting lower than consensus third quarter revenues and earnings.

EquityClock.com’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2014/09/23/stock-market-outlook-for-september-24-2014/

Note comments on Caterpillar and the Industrial sector as well as performance of the S&P 500 Index between Rosh Hashanah and Yom Kipper.

Interesting Charts

More technical evidence that U.S. equity markets have entered into a least a short term corrective phase!

· The Dow Jones Industrial Average and the Dow Jones Transportation Average fell below their 20 day moving average while their short term momentum indicators are trending down.

· The VIX Index continues to spike.

StockTwits Released Yesterday @equityclock

Technical action by S&P stocks to 11:00 AM: Bearish. Twelve stocks broke support. None broke resistance.

Notable breakdowns were Consumer Discretionary stocks: $HAR, $KMX, $OMC. ‘Tis the season for weakness!

Also notable breakdowns were Industrial stocks: $DOV, $ITW, $SRCL. ‘Tis the season for weakness!

Technical Action by Individual Equities

By the close yesterday, 17 S&P 500 stocks broke support and none broke resistance.

Among TSX 60 stocks, Imperial Oil and Cameco broke support and Agrium broke resistance.

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

FP Trading Desk Headline

FP Trading Desk headline reads, “Why baby boomers may drive the S&P 500 higher”. Following is a link:

http://business.financialpost.com/2014/09/23/why-baby-boomers-may-drive-the-sp-500-higher/

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/

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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 23^rd 2014

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