Tech Talk for Thursday December 12th 2019

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

Equity index futures moved slightly lower following release of economic news at 8:30 AM EST. Consensus for Weekly Jobless Claims was 212,000 versus 203,000 last week. Actual was 252,000. Consensus for the November Producer Price Index was an increase of 0.2% versus a gain of 0.4% in October. Actual was unchanged. Excluding food and energy, consensus for the November Price Index was an increase of 0.4% versus a gain of 0.2% in October. Actual was unchanged.

European Central Bank maintained its overnight lending rate at current levels.

Lululemon dropped $10.39 to $222.80 despite reporting higher than consensus third quarter sales and earnings. The company also issued guidance that was less than consensus.

Bausch Health gained $0.73 to U.S. $30.06 after JP Morgan upgraded the stock to Overweight from Neutral. Target was raised from $32 to $38.

Starbucks (SBUX $86.59) is expected to open higher after JP Morgan upgraded the stock to Overweight from Neutral. Target was raised from $90 to $94.

Autodesk dropped $3.05 to $176.59 after JP Morgan downgraded the stock to Underweight from Neutral.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/12/11/stock-market-outlook-for-december-12-2019/

Note seasonality charts on U.S. Consumer Price Index, NYSE Gold Bug Index relative to the S&P 500 and TSX Real Estate Index relative to the S&P 500.

Responses to the Federal Reserve Announcement

The Federal Reserve maintained the Fed Fund rate at 1.50-1.75%.

U.S. equity markets moved slightly higher after the 2:00 PM EST announcement

Bond prices were virtually unchanged.

The U.S. Dollar Index plunged

Gold and Silver prices moved higher

Gold and silver stocks responded to higher gold and silver futures prices

StockTwits released yesterday @EquityClock

Bank of New York Mellon $BK, an S&P 100 stock moved above $50.03 extending an intermediate uptrend.

Global Base Metals iShares $XBM.CA moved above $11.39 extending an intermediate uptrend.

BMO Equal Weight Global Base Metals ETF $ZMT.CA moved above $44.53 extending an intermediate uptrend

‘Tis the season for Global Base Metals equities and related ETFs to move higher to at least the end of February! $XBM.CA $ZMT.CA

BMO S&P-TSX Equal Weight Global Base Metals Hedged to CAD Index ETF (TSE:ZMT.TO) Seasonal Chart

Arithmetic Average Seasonal Chart

Copper Miners ETF $COPX moved above $19.08 extending an intermediate uptrend.

Oil Services ETF $OIH moved above $12.44 completing a base building pattern. ‘Tis the season for the sector to move higher to next April!

TransCanada Energy $TRP.CA, a TSX 60 stock moved above $68.44 resuming an intermediate uptrend.

Intuit $INTU, a NASDAQ 100 stock moved below $250.41 extending an intermediate downtrend.

Semiconductor ETFs moved to all-time highs extending intermediate uptrends. $SMH moved above $135.26 and $SOXX moved above $238.89

Corn ETN $CORN moved below $14.24 extending an intermediate downtrend.

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for December 11th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for December 11th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for December 11th 2019

Green: Increase from previous day

Red: Decrease from previous day

'Tis the season for gold/silver commodity/equity prices to move higher to the end of February!

S&P 500 Momentum Barometer

The Barometer added 0.80 to 69.54 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer gained 2.79 to 71.63 yesterday. It remains intermediate overbought.

Disclaimer: Seasonality and technical ratings offered in this report and at

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

Sponsored By...