Vialoux's Tech Talk: May 30, 2014

by Don Vialoux, Timing the Market
Technical Action by Individual Equities

Technical action by S&P 500 stocks remained modestly bullish yesterday. Another 11 S&P 500 stocks broke resistance (EL, PEP, SJM, TSN, PXD, CAH, EXC, K, EOG, SLB and JBL) and one stock broke support (Sally Mae). Notable among stocks breaking resistance were Consumer Staples and Energy stocks. The Consumer Staples SPDR and Energy SPDR broke to all-time highs.

One of the following two charts is “out of whack”. Which one? Is it lumber prices or lumber equity prices?

Weekly Technical Review of Select Sector SPDRs

Technology

· Intermediate trend remains up (Score: 1.0)

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index remains positive (Score: 1.0)

· Technical score based on the above technical indicators remains at 3.0 out of 3.0.

· Short term momentum indicators are trending up, but are overbought

Materials

· 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 trending up, but are overbought

Industrials

· Intermediate trend remains up

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index remains neutral

· Technical score remains at 2.5 out of 3.0

· Short term momentum indicators are trending up, but are overbought

Consumer Discretionary

· Intermediate trend remains up

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index improved from neutral to positive

· Short term momentum indicators are trending up, but are overbought

Financials

· Intermediate trend remains neutral

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index remains negative

· Technical score remains at 1.5 out of 3.0

· Short term momentum indicators are trending up, but are overbought

Energy

· Intermediate uptrend was confirmed yesterday on a break to an all-time high

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index changed from neutral to negative

· Technical score fell to 2.0 from 2.5 out of 3.0

· Short term momentum indicators are trending up, but are overbought

Consumer Staples

· Intermediate uptrend was confirmed yesterday by a break out to an all-time high

· Units moved above their 20 day moving average

· Strength relative to the S&P 500 Index remains negative

· Technical score improved to 2.0 from 1.0 out of 3.0

· Short term momentum indicators are mixed

Health Care

· Intermediate trend improved from down to neutral on a move yesterday above $59.49.

· Units remain above their 20 day moving average

· Strength relative to the S&P 500 Index remains positive

· Technical score improved to 2.5 from 2.0 out of 3.0

· Short term momentum indicators are trending up, but are overbought

Utilities

· Intermediate trend remains up

· Units moved above their 20 day moving average yesterday

· Strength relative to the S&P 500 Index remains negative

· Technical score improved to 2.0 from 1.0 out of 3.0

· Short term momentum indicators are trending up.

Summary of Weekly Seasonal/Technical Parameters for SPDRs

Key:

Seasonal: Positive, Negative or Neutral on a relative basis applying EquityClock.com charts

Trend: Up, Down or Neutral

Strength relative to the S&P 500 Index: Positive, Negative or Neutral

Momentum based on an average of Stochastics, RSI and MACD: Up, Down or Mixed

Twenty Day Moving Average: Above, Below

Green: Upgrade from last week

Red: Downgrade from last week

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:

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 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 Management (Canada) Inc.

Horizons Seasonal Rotation ETF HAC May 28^th 2014

Copyright © Don Vialoux, Jon Vialoux, Brooke Thackray