Pre-opening Comments for Wednesday January 4th
U.S. equity index futures were higher this morning. S&P 500 futures were up 22 points in pre-opening trade.
Salesforce.com added $4.35 to$139.13 after the company announced a 10% reduction in its staff.
Microsoft dropped $5.37 to $234.20 after UBS downgraded the stock from Buy to Neutral.
Target dropped $2.73 to $149.00 after Wells Fargo downgraded the stock from Overweight to Equal Weight.
Corning gained $0.81 to $33.35 after Credit Suisse upgraded the stock from Neutral to Outperform
EquityClock’s Daily Comment
Headline reads “At the start of an economic recession, it is normal for treasury yields to decline alongside the price of stocks as the US Dollar continues to appreciate”.
http://www.equityclock.com/2023/01/03/stock-market-outlook-for-january-4-2023/
Technical Notes
Bank of New York Mellon $BK an S&P 100 stock moved above $46.33 extending an intermediate uptrend.
Meta Platforms $META a NASDAQ 100 stock moved above $123.31 extending an intermediate uptrend.
Beverage stocks were under technical pressure. Coca Cola $KO a Dow Jones Industrial Average stock moved below $62.33 completing a double top pattern. Pepsico $PEP an S&P 100 stock moved below $178.39 also completed a double top pattern.
Weakness in beverage stocks triggered a double top pattern in Consumer Staples SPDRs $XLP on a move below $73.68.
Gold stocks and related ETFs responded to higher gold prices. TSX Gold iShares $XGD.TO moved above $18.06 extending an intermediate uptrend. Agnico-Eagle $AEM.TO a TSX 60 stock moved above Cdn$72.37 and Yamana Gold $YRI.TO a TSX 60 stock moved above Cdn$7.78 extending an intermediate uptrend.
NetEase $NTES a NASDAQ 100 stock moved above $74.92 extending an intermediate uptrend.
South Korea iShares $EWY moved below $55.53 and $55.44 completing a double top pattern.
“Gassy” stocks on both sides of the border responded to weakness in North American natural gas prices. Birchcliffe Energy $BIR.TO plunged below intermediate support at $8.70.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for January 3rd 2023
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for January 3rd 2023
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for January 3rd 2023
Green: Increase from previous day
Red: Decrease from previous day
Links offered by valued providers
David Keller discusses “The top five charts for 2022”
https://www.youtube.com/watch?v=vsc_jLM5v5w
Seasonal Conferences in January that influence equity prices
Two major conferences attract investor and consumer interest in early January, the Las Vegas Consumer Electronic Conference in Las Vegas from January 5th to January 8th and the JP Morgan Healthcare and Biotech Conference in San Francisco from January 9th to January 12th. Technical action in the semiconductor sector and the biotech sector normally is favourable prior to and during these conferences followed by profit taking by traders.
Biotech ETFs including FBT, BBH and IBB closely have followed their seasonal pattern since early November and are showing outperformance relative to the S&P 500 Index.
S&P 500 Momentum Barometers
The intermediate term Barometer slipped 0.80 to 48.60. It remains Neutral.
The long term Barometer eased 0.20 to 49.80. It remains Neutral.
TSX Momentum Barometers
The intermediate term Barometer added 0.42 to 52.97. It remains Neutral.
The long term Barometer was unchanged at 46.19. It remains Neutal.
Disclaimer: Seasonality ratings 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
