by Don Vialoux, Timing the Market
Interesting Charts
Continuing weakness in the U.S. Dollar Index combined with
“dovish” comments released in FOMC meeting minutes prompted the
S&P 500 Index and the Dow Jones Industrial Average to
recover back above their 20 day moving averages.
Weakness in the U.S. Dollar prompted additional strength in the
CRB Index. The Index broke to an 18 month high.
Energy prices led the advance in the CRB Index. Notable was
strength in gasoline prices following release of a larger than
expected drop in gasoline inventories (5.2 million barrels).
The drop sent inventory levels to below their five year average
for this time of year. Look for gasoline prices in Canada move
significantly higher during the next week.
Technical Action by Individual Equities
Yesterday
Technical action by S&P 500 stocks was exceptionally quiet
yesterday. Two stocks broke resistance (Equitable Resources and
Eli Lilly) and one stock broke support (Pfizer).
Two TSX 60 stocks broke resistance (Crescent Point and Power
Financial) and none broke support. Strength in Crescent Point
was one of the reasons why the TSX Energy Index reached a 30
month high. ‘Tis the season!
FP Trading Desk Headline
FP Trading Desk headline reads, “Buybacks and capex: you can
have both”. Following is a link:
http://business.financialpost.com/2014/04/09/buybacks-and-capex-you-can-have-both/
Weekly Technical Review of Select Sector
SPDRs
Technology
· Intermediate trend remains up (Score: 1.0)
· Units remain above their 20 day moving average (Score: 1.0)
· Strength relative to the S&P 500 Index remains neutral
(Score: 0.5)
· Technical score remains at 2.5 out of 3.0.
· Short term momentum indicators are neutral.
Materials
· Intermediate trend remains up.
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index improved to
positive to neutral
· Technical score improved to 3.0 from 2.5
· Short term momentum indicators are mixed.
Consumer Discretionary
· Intermediate trend remains up.
· Units fell below their 20 day moving average
· Strength relative to the S&P 50 Index remains negative
· Technical score fell to 1.0 from 2.0 out of 3.0
· Short term momentum indicators are mixed
Industrials
· Intermediate trend remains up.
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index remains positive
· Technical score remains at 3.0 out of 3.0.
· Short term momentum indicators are mixed.
Financials
· Intermediate trend remains up.
· Units fell below their 20 day moving average
· Strength relative to the S&P 500 Index is changed from
neutral to negative
· Technical score fell to 1.0 from 2.5 out of 3.0.
· Short term momentum indicators are trending down.
Energy
· Intermediate trend remains up.
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index remains positive
· Technical score remains at 3.0 out of 3.0.
· Short term momentum indicators are overbought.
Consumer Staples
· Intermediate trend remains up.
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index changed from
neutral to positive
· Technical score improved to 3.0 from 2.5 out of 3.0
· Short term momentum indicators are overbought.
Health Care
· Intermediate trend changed from up to down on a move below
$57.11.
· Units fell below their 20 day moving average
· Strength relative to the S&P 500 Index remains negative
· Technical score fell to 0.0 from 2.0 out of 3.0
· Short term momentum indicators are trending down.
Utilities
· Intermediate trend remains up.
· Units remain above their 20 day moving average
· Strength relative to the S&P 500 Index changed from
neutral to positive.
· Technical score improved to 3.0 from 2.5 out of 3.0.
· Short term momentum indicators are overbought.
Special Free Services available
through www.equityclock.com
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. To login, simply go to http://www.equityclock.com/charts/
Following is an example:
US FINANCIALS Relative to the S&P 500 |
Disclaimer: Comments, charts and opinions
offered in this report by www.timingthemarket.ca
and 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. Don and Jon Vialoux are
Research Analysts with Horizons ETFs Management (Canada)
Inc. All of the views expressed herein are the personal
views of the authors and are not necessarily the views of
Horizons ETFs Investment Management (Canada) Inc., although any
of the recommendations found herein may be reflected in
positions or transactions in the various client portfolios
managed by Horizons ETFs Investment Management (Canada)
Inc.
Horizons Seasonal Rotation ETF HAC April
9th 2014
Copyright © Don Vialoux, Jon Vialoux, Brooke Thackray
