Editor Note: Money Talks highly recommends that you make a regular trip to this monday morning site to this Don Vailoux monday report where he analyses an astonishing 40 to 50 Stocks, Commodities and Index charts and, provides a “Bottom Line” and some very interesting commentary.
– a few of the 40+ charts and commentary below. Full site HERE.
Ed Note: Be sure to read the The Bottom Line below this brief commentary and charts.
U.S. equity index futures are slightly higher this morning. S&P 500 futures are up 1 point in pre-opening trade. Futures are responding to news that the UAE Central bank is willing to stand by banks in Dubai during Dubai World’s liquidity crisis.
Canada’s economy grew in the third quarter, but at a slower than expected rate. Consensus was a gain of 1.0%. Actual was a gain of 0.4%.
Goldman Sachs upgraded the U.S. steel sector from neutral to attractive. Goldman sees higher demand and prices for steel. It added U.S. Steel to its Conviction Buy list. In addition, Goldman favours Steel Dynamics, AK Steel and Nucor. The Market Vector Steel ETF is up more than 5% in pre-opening trade. ‘Tis the season for U.S. industrial stocks and ETFs to move higher!
The TSX Composite Index lost 124.92 points (1.00%) last week. Intermediate trend remains up. The Index tested its 50 day moving average on Friday, but remains above its 50 and 200 day moving averages. Short term momentum indicators have rolled over. Stochastics fell below 80% on Thursday and MACD registered a negative cross over from a short term overbought level on Friday. Strength relative to the S&P 500 Index is showing early signs of changing from negative to positive. Seasonal influences currently are positive. Downside risk is to support at 10,745.25.
The S&P 500 Index slipped 4.11 points (0.38%) last week. Intermediate trend remains up. The Index remains above its 50 and 200 day moving averages. Notice the significance of its 50 day moving average as a support level during the past six months. Once again, that level (currently 1073.83) is being tested. Short term technical parameters are turning negative. Stochastics fell below 80% on Friday and MACD recorded a negative crossover from a short term overbought level. Seasonal influences remain positive. Downside risk is to support at 1,029.38.
The Nikkei Average dropped 416.17 points (4.38%) last week. Intermediate trend remains down. The Average remains below its 50 day moving average and broke below its 200 day moving average on Friday. Short term momentum indicators are trending lower, currently are oversold, but have yet to show signs of bottoming. Strength relative to the S&P 500 Index remains negative.
The Shanghai Composite Index plunged 212.08 points (6.31%) last week. Intermediate trend remains up. The Index remains above its 50 and 200 day moving averages. Short term momentum indicators are trending lower from overbought levels, but have yet to show signs of bottoming. Strength relative to the S&P 500 Index remains positive, but could be showing early signs of change.
Technical action by the U.S. Dollar continues to dominate short term fluctuation in equity and commodity markets. Intermediate trend remains down. The Dollar slipped 0.68 last week after finding resistance once again at its 50 day moving average. Subsequently, it plunged to a new 14 month low. On Friday, it quickly recovered on the Dubai news and once again is testing its 50 day moving average currently at 75.88. Short term momentum indicators are neutral to slightly over sold.
The Bottom Line
North American equity markets appear poised to enter into a short term correction lasting 2-3 week. The correction will offer an opportunity to accumulate favoured equities and ETFs that will benefit from continuation of the period of seasonal strength.
Ed Note: much much more at Don Vialoux’s Monday Site HERE.
Don Vialoux has 37 years of experience in the Investment Industry. He is a past president of the Canadian Society of Technical Analysts (www.csta.org) and a former technical analyst at RBC Investments. Now he is the author of a daily letter on equity markets available free on the internet. The reports can be accessed daily right here at www.dvtechtalk.com.
Impossible! That’s what institutional investors say about “Timing the Market”. Mr. Vialoux will explain that, indeed, it can be done with the appropriate analysis. He also will explain why timing the market will be important during the next decade. Buy and Hold strategies are not working anymore; Investors are looking for alternatives. Mr. Vialoux will demonstrate four techniques that can be used to time intermediate stock market swings lasting 5-15 months. The preferred investment vehicles for investing in intermediate stock market swings are Exchange Traded Funds.
Comments in Tech Talk reports are the opinion of Mr. Vialoux. They are based on technical, fundamental and/or seasonal data that is believed to be accurate. The comments are free. Mr. Vialoux receives no remuneration from any source for these services. Comments should not be considered as advice to buy or to sell a security. Investors, who respond to comments in Tech Talk, are financially responsible for their own transactions.