Tech Talk for Tuesday July 17th 2018

U.S. equity index futures were lower this morning. S&P 500 futures were down 3 points in pre-opening trade.

Netflix plunged $52.21 to $348.27 after the company reported lower than consensus new subscriptions in the second quarter.

Johnson & Johnson added $0.94 to $125.63 after reporting higher than consensus second quarter earnings. The company also lowered guidance.

Goldman Sachs gained $1.41 to $232.85 after reporting higher than consensus second quarter earnings.

UnitedHealth Group dropped $4.58 to $252.40 despite reporting higher than consensus second quarter earnings.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/07/16/stock-market-outlook-for-july-17-2018/

Note seasonality charts on the Consumer Staples sector, Retail Trade, Empire State Manufacturing Survey, and Dow Jones Utility Index.

Observations

The CRB Index dropped below192.52 establishing an intermediate downtrend. 'Tis the season for weakness in commodity prices from early July to early October!

Weakness in the CRB Index was primarily related to a drop in crude oil, gasoline and heating oil prices.

Stock Twits Released Yesterday

Saputo $SAP.CA, a TSX 60 stock moved above $45.27 extending an intermediate uptrend.

Technical action by S&P 500 stocks to 10:00: Quiet. Breakout: $ARNC. Breakdowns: $NEM $MUR

Union Pacific $UNP moved below $139.87 completing a Head & Shoulders pattern.

Royal Bank $RY $RY.CA, a TSX 60 stock moved above $102.03 setting an intermediate uptrend.

Empire State #Manufacturing Survey showed +11.1 (NSA) in July, second best print for the month on record $MACRO #Economy.

U.S. #Retail Trade down 3.6% (NSA) in June, more than the 2.4% decline that is average for the month $MACRO #Economy

OOOPs! After the close, Netflix $NFLX, one of the FAANG stocks down$46.80 to $349 after reporting Q2 results. Double top pattern completed on a move below $378.75.

Editor's Comment: The other FAANG stocks quickly followed. Caveat Emptor!

Trader's Corner

Daily Seasonal/Technical Equity Trends for July 16th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for July 16th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Sector Trends for July 16th 2018

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards' Blog

Keith notes that some indicators suggest an approaching selling opportunity. See

https://www.valuetrend.ca/some-indicators-suggest-a-selling-opportunity-is-approaching/

Josef Schachter on BNNBloomberg's Market Call

Full Episode

https://www.bnnbloomberg.ca/market-call/full-episode-market-call-for-monday-july-16-2018~1437245

Past Picks

https://www.bnnbloomberg.ca/market-call/josef-schachter-s-past-picks~1439861

Top Picks

https://www.bnnbloomberg.ca/market-call/josef-schachter-s-top-picks~1439876

S&P 500 Momentum Barometer

The Barometer slipped 2.80 to 64.20 yesterday. It remains intermediate overbought and showing early signs of rolling over.

TSX Momentum Barometer

The Barometer slipped another 1.58 to 59.41 yesterday. More signs of a rollover have appeared.

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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