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Tech Talk for Tuesday December 3rd 2019

 

Observations

The U.S. Dollar Index recorded significant technical weakness yesterday by moving below its 20 and 50 day moving averages. Also, short term momentum indicators (i.e. Stochastics, RSI, MACD) rolled over from short term overbought levels.

‘Tis the season for the U.S. Dollar Index to move lower to the end of the year!

Precious metal futures and related equities responded on both sides of the border by moving higher. The Gold Bug Index moved nicely above its 20 and 50 day moving averages. Short term momentum indicators also moved higher from short term oversold levels.

Seasonal influences for precious metals futures and equities normally turn positive in the second week in December for a seasonal trade lasting to at least the end of February. Silver is preferred over gold during this period.

FUTURE_SI1 Relative to the S&P 500

FUTURE_SI1 Relative to Gold

Favourable seasonal influences for the sector are appearing earlier than usual this year. Palladium futures broke to an all-time high yesterday on a move above $1,799.20.

 

StockTwits released yesterday @EquityClock

Silver equities are moving higher. Nice breakout by Pan American Silver $PAAS above $19.44 extending an intermediate uptrend.

Natural Gas ETN $UNG moved below $17.74 extending an intermediate downtrend.

Uranium ETF $URA moved below $10.72 setting an intermediate downtrend.

Bank of America $BAC, an S&P 100 stock moved above $33.60 extending an intermediate uptrend.

ManuLife $MFC.CA, a TSX 60 stock moved above $26.22 to a 10 year high extending an intermediate uptrend.

Pembina Pipeline $PPL.CA, a TSX 60 stock moved below $45.70 setting an intermediate downtrend.

 

Trader’s Corner

 

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for December 2nd 2019

Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for December 2nd 2019

Green: Increase from previous day

Red: Decrease from previous day


Sectors

Daily Seasonal/Technical Sector Trends for December 2nd 2019

Green: Increase from previous day

Red: Decrease from previous day

 

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for a link to the weekly comment:

Headline reads, “Nine turn, recession unlikely, slowdown ongoing, continued repo, blue skies, debt high, beckoning Santa”. Following is the link:

http://enrichedinvesting.com/wp-content/uploads/2019/12/Nine-turn-recession-unlikely-slowdown-ongoing-continued-repo-blue-skies-debt-high-beckoning-Santa.pdf

 

S&P 500 Momentum Barometer

The Barometer dropped 6.21 to 66.73 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

The Barometer dropped 5.48 to 65.30 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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