Tech Talk for Wednesday November 14th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 12 point in pre-opening trade.

Brrrrr, it's cold out there! It snowed in our neighborhood last night. The spot price for Natural gas jumped $0.55 to $4.65 per MBtu in overnight trading. As the expression goes, "Buy (equities) when it snows, sell when it goes".

Index futures moved slightly higher following release of the U.S. October Consumer Price Index at 8:30 AM EST. Consensus was an increase of 0.3% versus a gain of 0.1% in September. Actual was an increase of 0.3. Excluding food and energy, consensus was an increase of 0.2% versus a gain of 0.1% in September. Actual was an increase of 0.2%

3M (MMM $198.37) is expected to open higher after the company announced a $10 billion share buyback program.

Cineplex (CPX $36.05 Cdn) is expected to open higher after reporting higher than consensus third quarter earnings.

Loblaw Companies (L $58.60) is expected to open higher after reporting higher than consensus third quarter earnings.

Apple added $0.77 to $193.04 despite a downgrade by Guggenheim to Neutral from Buy.

Macy's gained $0.36 to $36.15 after reporting higher than consensus third quarter sales and earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/11/13/stock-market-outlook-for-november-14-2018/

Note seasonality chart on the Russell 2000 Index.

Observation

CNBC talked last night about the dreaded "Death Cross" by the Russell 2000 Index when the Index almost completed the pattern yesterday. The "Death Cross" occurs when the 50 day moving average moves below the 200 day moving average. The indicator implies significantly lower prices for small cap stocks. Tech Talk's previous studies on this indicator show that returns for this indicator tend to be random. Seasonality charts suggest the likelihood of strength rather than weakness to at least year end.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 11:30: Bearish. Intermediate breakouts: $AVB $USB. Breakdowns: $BBY $CXO $EOG $HAL.

Editor's Note: After 11:30 AM EST, no additional breakouts. Breakdowns: HFC and OKE

Rogers Communications $RCI.B.CA $RCI, a TSX 60 stock moved above $69.35 Cdn. to an all-time high extending an uptrend.

First Majestic Silver $AG $FR.CA moved below $5.01 U.S. and $6.60 Cdn. extending an intermediate downtrend.

Lumber ETF $WOOD moved below $64.44 extending an intermediate downtrend.

More S&P Energy stocks break intermediate support: $HFC $HP $OKE $PSX.

Suncor $SU.CA, a TSX 60 stock moved below $43.12 extending an intermediate downtrend.

Trader's Corner

Note deterioration of Momentum indicators by a wide variety of indices, commodities and sectors

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for November 13th 2018

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for November 13th 2018

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for November 13th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer added 1.60 to 37.80 yesterday. It remains intermediate oversold.

TSX Momentum Barometer

The Barometer slipped another 1.67 to 30.13 yesterday. It remains intermediate oversold.

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

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