Tech Talk for Friday January 5th 2018

U.S. equity index futures were higher this morning. S&P 500 futures were up 8 points in pre-opening trade.

U.S. equity index futures were virtually unchanged following release of economic news at 8:30 AM EST. Consensus for December Non-farm Payrolls was 190,000 versus revised 211,000 in November. Actual was148,000. Consensus for December Unemployment Rate was unchanged at 4.1% from November. Actual was unchanged at 4.1%. Consensus for November U.S. Trade Deficit was $48.3 billion versus $48.7 billion in October. Actual was $50.5 billion.

The Canadian Dollar surged to US80.55 cents from US79.96 cents following release of Canada's economic news at 8:30 AM EST. Consensus for December Employment was an increase of 1,000 versus a gain of 79,500 in November. Actual was an increase of 78,600.Consensus for Canada's Unemployment Rate was an increase to 6.0% from 5.9% in November. Actual was a drop to 5.7%. Consensus for November Merchandise Trade Deficit.was $1.4 billion versus $1.5 billion in October. Actual was $2.54 billion.

Nokia slipped $0.02 to $4.87 after Credit Suisse downgraded the stock to neutral from outperform.

Xilinx gained $1.73 to $72.22 after Goldman Sachs upgraded the stock to Buy from Neutral

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/01/04/stock-market-outlook-for-january-5-2018/

Note seasonality charts on Initial Jobless Claims, Non-farm Payrolls, Crude Oil Days of Supply, Gasoline Days of Supply, Crude Oil and Canadian Product Price Index.

Observations

More all-time or multi-year highs by equity indices and related ETFs:

Russell 2000 all-time high

Nikkei 25 year high

Greek iShares: 30 month high

REITs remain under pressure

A word of caution on the Technology sector! The sector has been "on fire" during the past three weeks with a focus on the FAANG stock and their moves to all-time high. History shows that the sector has a high probability of reaching a seasonal peak during the week of the Las Vegas Consumer Electronics show. This year, the show is scheduled from January 8th to 12th

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 11:00: Bullish. 25 stocks broke resistance. One stock broke support: $M

Editor's Note: After 11:00 AM EST, breakouts included PVH, CMI, PNR, PRGO, CAH, DXC, HPE, GE, BHGE, XEC and VFC. Breakdowns: AIV, IRM

IBM $IBM, a Dow Jones Industrial stock moved above $160.90 extending an intermediate uptrend.

Microsoft $MSFT, a Dow Jones Industrial stock moved above $87.50 to an all-time high extending an intermediate uptrend.

Dow Dupont $DWDP, a Dow Jones Industrial stock moved above $73.45 to an all-time high extending an intermediate uptrend.

TSX Financials iShares $XFN.CA moved above $38.91 to an all-time high extending an intermediate uptrend.

Eurozone iShares $EZU moved above $43.92 to an all-time high extending an intermediate uptrend.

Italy iShares $EWI moved above $31.44 to a 3 year high extending an intermediate uptrend.

Canadian Natural Resources $CNQ.CA, a TSX 60 stock moved above $46.71 to a 9 year high extending an intermediate uptrend.

Another gold stock breakout! Kinross Gold $KGC, a TSX 60 stock moved above $54.95 extending an intermediate uptrend.

U.S. Natural Gas Storage reported today well below 5 year average. $UNG. Baby, it's cold out there.

National Bank $NA.CA moved above $63.17 to an all-time high extending an intermediate uptrend.

Pembina Pipeline $PPL.CA moved above $45.89 to an all-time high extending an intermediate uptrend.

Trader's Corner

Daily Seasonal/Technical Equity Trends for January 4th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for January 4th 2018

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for January 4th 2018

Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

The Barometer was unchanged yesterday at 79.60. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer slipped 2.92 to 62.50 yesterday. It remains intermediate overbought.

Disclaimer: Seasonality 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

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