by Don Vialoux, Timingthemarket.ca
Interesting Charts
The precious metals sector continues to show strong technical momentum. Platinum led the way yesterday.
Gold and its related ETFs are responded to a technical breakout above resistance.
Gold equities and related ETFs continue to outperform gold.
After a long downtrend, nickel prices finally are showing technical signs of bottoming.
Maryanne Bartels, Merrill Lynch’s technical analyst noted last night on CNBC that she expects U.S. equity markets to decline 8-10% by the end of September. The Dow Jones Industrial Average is showing early signs of peaking: about to break its 20 day moving average, short term momentum indicators are rolling over from overbought levels and strength relative to the S&P 500 Index is negative.
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Weekly SPDR Select Sector Review
Technically, most sector SPDRs either are showing early signs of rolling over from overbought levels or already have rolled over.
Technology
· Intermediate trend is up. However, stock recorded a key reversal of Tuesday.
· Units remain above their 20, 50 and 200 day moving averages.
· Short term momentum indicators are overbought and showing early signs of rolling over.
· Strength relative to the S&P 500 Index remains positive.
Materials
· Intermediate trend is up.
· Units trade above their 20, 50 and 200 day moving averages.
· Short term momentum indicators are overbought, but have yet to show signs of peaking.
· Strength relative to the S&P 500 Index remains neutral.
Consumer Discretionary
· Intermediate trend is neutral. Short term trend is up. Intermediate resistance is at $46.11.
· Trades above its 20, 50 and 200 day moving averages.
· Short term momentum indicators are overbought, but have yet to show signs of peaking.
· Strength relative to the S&P 500 Index has changed from negative to neutral.
Industrials
· Short and intermediate trend is up. Recorded a key reversal on Tuesday.
· Units trade above its 20, 50 and 200 day moving averages.
· Short term momentum indicators are overbought and showing early signs of rolling over.
· Strength relative to the S&P 500 Index remains positive.
Energy
· Short and intermediate trend is up.
· Units trade above their 20, 50 and 200 day moving averages.
· Short term momentum indicators are overbought and showing early signs of rolling over.
· Strength relative to the S&P 500 Index remains positive.
Financials
· Short and intermediate trend is up.
· Units trade above their 20, 50 and 200 day moving averages.
· Short term momentum indicators are overbought and showing early signs of rolling over.
· Strength relative to the S&P 500 Index remains neutral.
Consumer Staples
· Short and intermediate trend is up. Recorded a key reversal on Tuesday
· Trades above their 50 and 200 day moving average, but fell below its 20 day moving average yesterday.
· Short term momentum indicators have rolled over from overbought levels.
· Strength relative to the S&P 500 Index remains negative.
Health Care
· Short and intermediate trend is up. Resistance is at $38.90.
· Trades above its 50 and 200 day moving averages, but fell below its 20 day moving average yesterday.
· Short term momentum indicators are overbought and have rolled over.
· Strength relative to the S&P 500 Index remains negative
Utilities
· Intermediate trend changed from up to down on a break below support at $37.09.
· Remained below its 20 day moving average and recently fell below its 50 day moving average.
· Short term momentum indicators are trending down.
· Strength relative to the S&P 500 Index remains negative.
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Equityclock.com is offering free access to a data base showing seasonal studies on individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices.
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FP Trading Desk Headlines
FP Trading Desk headline reads, “September a rough month for investors”. Following is a link to the report:
http://business.financialpost.com/2012/08/22/september-a-rough-month-for-investors/
FP Trading Desk headline reads, “Gold should continue to rise: Desjardins”. Following is a link to the report:
http://business.financialpost.com/2012/08/22/gold-should-continue-to-rise-desjardins/
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Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca 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.
Don and Jon Vialoux are research analysts for Horizons Investment Management Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons Investment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons Investment Management Inc
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Horizons Seasonal Rotation ETF HAC August 22nd 2012
