Vialoux's Technical Talk – January 21, 2015

by Don Vialoux, EquityClock.com

U.S. equity index futures were lower this morning. S&P 500 futures were down 5 points in pre-opening trade.

Index futures were virtually unchanged following release of December Housing Starts. Consensus was an increase to 1,050,000 units from an upwardly revised 1,040,000 units in November. Actual was 1,090,000 units.

Canadian equity prices are expected to open higher thanks to higher gold, silver, crude oil and natural gas prices in overnight trade.

Fourth quarter reports continue to pour in. Companies that reported since the close yesterday included Netflix, IBM, US Bancorp, Fifth Third Banks, Northern Trust, TD Ameritrade and UnitedHealth Care

Autozone (AN $57.80) is expected to open lower after Goldman Sachs downgraded the stock to Neutral from Buy. Target is $64.

Colgate Palmolive dropped $0.40 to $68.30 after UBS downgraded the stock to Neutral from Buy.

CVS (CVS $98.37) is expected to open higher after Goldman Sachs upgraded the stock.

Chevron slipped $0.70 to $105.77 after Wells Fargo downgraded the stock to Market Perform

Hershey (HSY $110.38) is expected to open lower after JP Morgan downgraded the stock to Neutral from Overweight. Target is $116.

Netflix added $61.51 to $410.31 after raising its guidance and after Nomura upgraded the stock to Buy from Neutral.

Verizon slipped $0.32 to $47.86 after Barclays downgraded the stock to Equal Weight from Overweight.

Wal-Mart slipped $0.55 to $86.14 after Morgan Stanley downgraded the stock to Equal Weight from Overweight.

 

EquityClock’s Daily Market Comment

Following is a link: http://www.equityclock.com/2015/01/20/stock-market-outlook-for-january-21-2015/

Note study on S&P 500 returns following state of Union Address during Pre-Election Years. Also note seasonality report on the Canadian Dollar.

 

Interesting Charts

Responses to most fourth quarter reports continue to be negative. Earnings and revenues are coming in close to consensus, but guidance by many companies has been lowered.

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European equities continue to move higher. The DAX Index closed at an all-time high. The CAC Index broke above resistance.

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StockTwits Released Yesterday

Potential bottoming pattern in the energy sector ahead of a period of seasonal strength: $XLE, $XOP, $XEG.CA

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Mixed technical by S&P 500 stocks to 10:30 AM! Breakouts: $HSP, $COL, $EA, $PEG, $TEG. Breakdowns: $SNI, $TWX, $BLL, $NRG, $OI, $SE, $ALLE

Selected Canadian gold stocks are breaking to new highs in U.S. Dollar this morning: $FNV, $AEM, $EGO.

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Technical Action by Individual Equities Yesterday

After 10:30 AM, breakouts by S&P 500 stocks included GIS, BF.B, SJM, POM and TE. Both POM and TE are utility stocks. Not surprising, the utility sector was the strongest S&P sector (again) in response to lower interest rates.

Among TSX 60 stocks, gold equities dominated the list (including Barrick Gold)

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Trader’s Corner

Daily Seasonal/Technical Equity Trends For January 20th

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Green: Increase from the previous day

Red: Decrease from the previous day

 

Daily Seasonal/Technical Commodities Trends for January 20th

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Daily Seasonal/Technical Sector Trends for January 20th

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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 seas

onality studies on over 1000 big and moderate cap securities and indices. To login, simply go to http://www.equityclock.com/charts/

Below is an example:

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FP Trading Desk Headline

FP Trading Desk headline reads, “Zinc and nickel upside imminent”. Following is a link:

http://business.financialpost.com/2015/01/20/zinc-and-nickel-upside-imminent-clarus/?__lsa=240c-23d4

 

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 January 20th 2014

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Copyright © by Don Vialoux, EquityClock.com

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