Tech Talk for Friday May 11th 2018

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

The Canadian Dollar slipped 0.09 to 78.41 cents U.S. following release of Canada' April Employment report at 8:30 AM EDT. Consensus was a gain in employment of 19,600 versus an increase of 32,300 in March. Actual was a drop of 1,100. Consensus for the Unemployment Rate was 5.8%, unchanged from March. Actual was 5.8%. Consensus for Average Hourly Earnings was an increase of 3.2% versus a gain of 3.3% in March. Actual was 3.3%

Verizon gained $0.76 to 47.96 after JP Morgan upgraded the stock to Overweight from Neutral.

Symantec dropped $8.03 to $21.15 after reporting lower than consensus quarterly results. Stifel Nicolaus lowered its target price on the stock to $21 from $26.

Mosaic added $0.39 to $26.77 after RBC Capital upgraded the stock to Outperform from Sector Perform

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/10/stock-market-outlook-for-may-11-2018/

Note seasonality charts on U.S. Consumer Price Index, Utilities sector, Natural Gas storage. Natural Gas and 10 Year Treasury Note Futures.

Observations

Natural gas continues to try:

Inventory levels remain near their five year low despite gains announced yesterday.

Note: The shaded area indicates the range between the historical minimum and maximum values for the weekly series from 2013 through 2017. The dashed vertical lines indicate current and year-ago weekly periods.

Seasonal influences are positive until mid-June

Response to the inventory report released yesterday was encouraging. Short term momentum indicators turned positive (move above its 20 day MA, Stochastics, RSI, MACD. A move above $2.844 will attract technical buying.

Preferred way to invest in the sector is through "gassy" stocks and related ETFs.

Mixed news after the close yesterday after NVidia released quarterly results! Earlier in the day, the stock surged to an all-time high in anticipation of results to be released after the close. Initial response after the company released blow out results was positive. Subsequently the stock came under significant profit taking pressure, down over 2%.

StockTwits Released Yesterday @EquityClock

Silver stocks and ETF recording gains. Breakouts by Hecla Mining $HL and Pan American Silver $PAAS $SIL

Technical action by S&P 500 stocks to 10:00: Bullish. Breakouts: $JBHT $UNP $MAA $GOOGL $GOOG $ANSS

Editor's Note: After 10:00 AM EDT, breakouts included XOM, MCO, ACN, TSS and SPG. No breakdowns

Alphabet/Google, one of the FAANG stocks moved above resistance resuming an intermediate uptrend $GOOGL $GOOG

OpenText $OTEX dropped below $38.59 and $38.35 setting intermediate downtrend.

New Flyer Indusrties $NFI.CA moved below $55.95 completing a double top pattern.

Methanex $MX.CA $MEOH moved above $87.59 to an all-time high extending an intermediate uptrend.

Finning International $FTT.CA moved above $33.35 extending an intermediate uptrend.

Enbridge $ENB.CA, a TSX 60 stock moved above $42.22 on debt reduction news completing a double bottom pattern.

BHP Billiton $BHP, a major base metals producers moved above $49.57 to a 4 year high extending an intermediate uptrend.

Exxon Mobil $XOM, a Dow Jones Industrial stock moved above $80.90 extending an intermediate uptrend.

Brookfield Asset Management $BAM, a TSX 60 stock moved above $40.61 U.S. completing a base building pattern.

Another silver producer stock breakout! First Majestic Silver moved above $7.00 Cdn extending an intermediate uptrend. $AG $FR.CA

Canadian Pacific $CP $CP.CA, a TSX 60 stock moved above $239.81 and $239.90 extending an intermediate uptrend.

Financial SPDRs $XLF moved above intermediate resistance at $28.24

Russia ETF $RSX moved above $21.61 setting an intermediate uptrend. Response to higher crude oil prices.

TMX Group $X.CA moved above $79.38 to an all-time high extending an intermediate uptrend.

First encouraging technical signs for China Funds and ETFs! $CAF moved above $25.94.

Editor's Note: Also, showed up with Hong Kong iShares

Trader's Corner

Daily Seasonal/Technical Equity Trends for May 10th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for May 10th 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for May 10th 2018

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards' Blog

Keith says, "What's next for oil? Following is a link:

http://www.valuetrend.ca/more-upside-to-come-for-oil/

S&P 500 Momentum Barometer

The Barometer jumped 8.20 to 61.00 yesterday. It changed to intermediate overweight from intermediate neutral, but shows no sign of peaking.

TSX Momentum Barometer

The Barometer slipped yesterday by 0.28 to 68.03. 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

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