Vialoux's Tech Talk: June 6, 2014

June 6, 2014

3 minute read

by Don Vialoux, Timing the Market

Interesting Charts

Wild day in currencies following release of European Central Bank news! Initially, the Euro cratered, but quickly recorded a significant reversal. The U.S. Dollar was a negative mirror image.

U.S. equity markets responded to U.S. Dollar weakness. Strongest sector was the Financials

Financial SPDRs broke to a six year high.

Technical Action in individual equities

Technical action by S&P 500 stocks remained bullish. Notable on the list of stocks breaking above resistance were 9 financial stocks (KIM, PNC, EQR, MS, PLD, RF, AIV, C and JPM).

No TSX 60 stocks broke support or resistance.

Weekly Technical Review of Select Sector SPDRs

Technology

· Intermediate trend remains up (Score: 1.0)

· Units remain above their 20 day moving average (Score: 1.00

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

· Technical score based on the above 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 trend 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 remains positive

· Technical score remains at 3.0 out of 3.0

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

Financials

· Trend changed from neutral to up on a move above $22.65 yesterday

· Units remain above their 20 day moving average

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

· Technical score improved to 3.0 from 1.5 out of 3.0.

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

Energy

· Intermediate trend remains up

· Units remain above their 20 day moving average

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

· Technical score remains at 2.0 out of 3.0

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

Consumer Staples

· Intermediate trend is up

· Units remain above their 20 day moving average

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

· Technical score remained at 2.0 out of 3.0

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

Health Care

· Intermediate trend changed from neutral to up on a move above $60.29 yesterday

· Units remain above their 20 day moving average

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

· Technical score improved to 3.0 from 2.5 out of 3.0.

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

Utilities

· Intermediate trend remains up

· Units remain above their 20 day moving average

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

· Technical score improved to 2.5 from 2.0 out of 3.0

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

Summary of Weekly Seasonal/Technical Parameters for SPDRs

Unit Seasonal Trend Relative Momentum 20 Day

Strength MA

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:

FP Trading Desk Headline

FP Trading Desk headline reads, “RBC annihilates uranium price outlook”. Following is a link:

http://business.financialpost.com/2014/06/05/rbc-annihilates-uranium-price-outlook/

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 June 5^th 2014

Author

Don Vialoux, EquityClock.com

Don Vialoux is the author of free daily reports on equity markets, sectors, commodities and Exchange Traded Funds. All of the views expressed herein are his personal views although they may be reflected in positions or transactions in the various client portfolios. Daily reports are available at http://www.timingthemarket.ca.