Tech Talk for Thursday January 25th 2018

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

European Central Bank's monetary policy remains unchanged.

The Canadian Dollar was virtually unchanged following release of Canada's November Retail Sales. Consensus was an increase of 0.8% versus a gain of 1.5% in October. Actual was an increase of 0.2%.

Index futures were virtually unchanged following release of the Weekly Jobless Claims report. Consensus was an increase to 240,000 from 220,000 last week. Actual was an increase to 233,000.

Quarterly reports continue to pour in. Reports released since the close yesterday included American Airlines, American Electric Power, Biogen, Caterpillar, Celgene, Foot Locker, Ford, Freeport McMoran, Lam Research, McCormick, MMM, Northrop Grumman, Sherwin Williams, Union Pacific, Whirlpool and Xilinx.

Foot Locker (FL $52.25) is expected to open higher after Wedbush raised its target price to $59 to $52.

Ralph Lauren gained $1.44 to $119.18 after Cowen raised its target price to $110 from $95.

EquityClock's Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/01/24/stock-market-outlook-for-january-25-2018/

Note seasonality charts on Stoxx 50 Index, Existing Home Sales, Housing Inventories, Crude Oil days of Supply, Gasoline Days of Supply, Crude Oil, and CRB Index.

Observations

Favourable comments by U.S. Treasury Secretary Mnuchin on weakness in the U.S. Dollar Index had an extraordinary impact on currencies and commodities:

Commodity sensitive equity markets (Brazil, Australia) responded strongly on the upside with U.S. Dollar weakness.

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bullish. Breakouts: $WHR $ALXN $FAST $GWW $FTV. Breakdown: $ULTA

Editor's Note: After 10:00 AM EST, breakouts included RCL, GD and BF.B. Breakdown: PGR

Precious metal stocks are leading the advance in North American equity markets. 'Tis the season for strength to the end of February! $WPM $KGC

Nickel ETN $JJN moved above $15.88 to 2.5 year high extending intermediate uptrend. China play? $VALE is biggest nickel producer.

Led by strength in $CORN, the grain ETN $JJG completed a double bottom pattern on a move above $24.80.

Telus $T.CA moved below $46.21 extending an intermediate downtrend.

Pembina Pipeline $PPL.CA moved below $43.19 completing a double top pattern.

Silver ETN $SLV moved above $16.31 extending an intermediate uptrend. 'Tis the season for strength until end of February. Ditto for $SIL.

Base metal ETN $DBB moved above $19.50 to 5 year high extending an intermediate uptrend.

Canadian natural gas producers are not benefiting from higher U.S. natural gas prices. $PSK.CA

Weak U.S. Dollar Index today triggered a breakout by the CRB Index above 196.36 to a 2.5 year high. 'Tis the season for strength to April. $GSG

WestJet $WJA.CA moved below $24.48 completing double top pattern.

BCE $BCE.CA, a TSX 60 stock moved below $57.09 extending an intermediate downtrend.

Another gold stock breakout! Agnico-Eagle $AEM.CA moved above $60.65. 'Tis the season for strength to the end of February.

Trader's Corner

Daily Seasonal/Technical Equity Trends for January 24th 2018

Green: Increase from previous day

Red: Decrease from previous day

Daily Seasonal/Technical Commodities Trends for January 24th 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 24th 2018

Green: Increase from previous day

Red: Decrease from previous day

Keith Richards' Blog

Ask anything: Answers

Following is a link:

http://www.valuetrend.ca/ask-anything-answers-2/

Schachter Energy Report

Josef released his latest monthly report yesterday. His conclusion:

Use periods of weakness to add to your favourite positions and be patient! We expect many of the natural gas stocks and land drillers on our Action Alert Buy list could go up 50% or move this year.

Following is a link:

https://www.schachterenergyreport.ca/content-restricted/?r=12788

S&P 500 Momentum Barometer

The Barometer slipped 0.80 to 83.40 yesterday. It remains intermediate overbought.

TSX Momentum Barometer

The Barometer added another 0.83 to 63.22 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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