Tech Talk for Tuesday August 6th 2019

U.S. equity index futures moved higher this morning. S&P 500 futures advanced 24 points in pre-opening trade. Index futures responded to news that China has taken steps to stabilize the Yuan relative to the U.S. Dollar.

International Flavours and Fragrances (IFF $141.47) is expected to open lower after the company lowered guidance for the remainder of 2019.

Bausch Health added $0.65 to U.S. $23.97 after the company raised its revenue and earnings guidance.

Mosaic dropped $0.96 to U.S. $22.64 after reporting lower than consensus second quarter revenues and earnings.

Ford added $0.17 to $9.40 after Morgan Stanley upgraded the stock to Overweight from Equal Weight.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/08/03/stock-market-outlook-for-august-6-2019/

Note seasonality chart on U.S. Non-farm Payrolls.

Observations

Expect Canadian equities to open sharply lower this morning. A proxy for the TSX Composite Index that traded yesterday is Canada iShare $EWC. It dropped 1.85% yesterday.

One of the weakest sectors in the U.S. yesterday was Energy. Energy iShares dropped below support at $58.24 extending an intermediate downtrend.

Oil Services were the weakest subsector in the Energy sector.

StockTwits released yesterday @EquityClock

Home Depot $HD, a Dow Jones Industrial stock completed a double top pattern on a move below$210.38.

Boeing $BA, a Dow Jones Industrial stock moved below $330.67 extending an intermediate downtrend.

Citrix Systems $CTXS, a NASDAQ 100 stock moved below $92.78 extending an intermediate downtrend.

Advanced Micro Devices $AMD, a NASDAQ 100 stock moved below $28.67 completing a double top pattern.

PayPal $PYPL, a NASDAQ 100 stock moved below $103.96 extending an intermediate downtrend.

Gold ETN $GLD moved above $136.63 to a six year high extending an intermediate uptrend. Gold equities and related ETFs $GDX $GDXJ quickly responded by breaking higher.

Editor's Note: The Gold Bug Index was notably stronger

China Large Cap iShares $FXI moved below$39.50 extending an intermediate downtrend.

Editor's Note: China related Hong Kong ETF EWH broke below $24.05 to a seven month low completing a double top pattern.

More copper stock breakdowns related to weakness in copper prices! $SCCO

Editor's Note: Base Metal ETN (copper, zinc, aluminum) dropped to a 32 month low.

Chile iShares $ECH moved below $37.05 extending an intermediate downtrend. Chile’s economy is highly sensitive to the price of copper.

Vietnam ETF $VNM moved below $15.88 setting an intermediate downtrend.

Germany iShares $EWG moved below $26.07 completing a double top pattern.

Editor's Note: Hardest hit equity markets were emerging markets: EEM

Steel ETF $SLX moved below $35.01 extending an intermediate downtrend.

eBay $EBAY, a NASDAQ 100 stock moved below $38.92 completing a topping pattern.

The VIX Index moved above 23.38% extending an intermediate uptrend. $VIX

Trader's Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for August 5th 2019

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for August 5th 2019

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for August 5th 2019

Green: Increase from previous day

Red: Decrease from previous day

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for the link to the following weekly report:

http://enrichedinvesting.com/wp-content/uploads/2019/08/Cut-party-cold-water-volatility-return-currency-wars-negative-yield-widened-spreads-job-anomalies.pdf

S&P 500 Momentum Barometer

The Barometer plunged to 26.40 from 48.60 yesterday. It dropped from intermediate neutral to intermediate oversold on a move below 40.00, but has yet to show signs of bottoming.

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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