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Stock Market Outlook for August 15, 2018

Transportation stocks benefitting ahead of seasonal strength as energy commodities flat-line.

 

Real Time Economic Calendar provided by Investing.com.

 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.   As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

Stocks Entering Period of Seasonal Strength Today:

W.W. Grainger, Inc.  (NYSE:GWW) Seasonal Chart

W.W. Grainger, Inc. (NYSE:GWW) Seasonal Chart

RigNet Inc. (NASD:RNET) Seasonal Chart

RigNet Inc. (NASD:RNET) Seasonal Chart

Northfield Bancorp, Inc. (NASD:NFBK) Seasonal Chart

Northfield Bancorp, Inc. (NASD:NFBK) Seasonal Chart

FutureFuel Corp. (NYSE:FF) Seasonal Chart

FutureFuel Corp. (NYSE:FF) Seasonal Chart

California Amplifier, Inc. (NASD:CAMP) Seasonal Chart

California Amplifier, Inc. (NASD:CAMP) Seasonal Chart

On Assignment, Inc. (NYSE:ASGN) Seasonal Chart

On Assignment, Inc. (NYSE:ASGN) Seasonal Chart

Blackrock, Inc. (NYSE:BLK) Seasonal Chart

Blackrock, Inc. (NYSE:BLK) Seasonal Chart

autobytel.com, Inc. (NASD:ABTL) Seasonal Chart

autobytel.com, Inc. (NASD:ABTL) Seasonal Chart

AutoWeb, Inc. (NASD:AUTO) Seasonal Chart

AutoWeb, Inc. (NASD:AUTO) Seasonal Chart

Belden Inc. (NYSE:BDC) Seasonal Chart

Belden Inc. (NYSE:BDC) Seasonal Chart

DSW Inc. (NYSE:DSW) Seasonal Chart

DSW Inc. (NYSE:DSW) Seasonal Chart

 

 

The Markets

Stocks rebounded on Tuesday as concerns pertaining to geopolitical risks eased.  The S&P 500 Index added over six-tenths of one percent, attempting to push back into the gap that was opened in Friday’s session around 2850.  Confirmed resistance around this pivot point would provide a signal to take some chips off the table following the multi-month climb to new highs.  The large-cap benchmark continues to show an intermediate trend of higher-highs and higher-lows and support at the 20-day moving average remains solid.  Momentum indicators remain in bullish territory, but they have stalled, suggesting buying exhaustion.  Seasonally, the weeks ahead are the most volatile period for stocks, often leading to a period of weakness going into the fourth quarter of the year.

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Among the leaders on the session were transportation stocks.  The Dow Jones Airline Index was higher by three-quarters of one percent and the Railroad Index was up by over one percent.  Both benchmarks are bouncing from rising 20-day moving averages, confirming this short-term hurdle as a level of support.  Signs of outperformance amongst transportation benchmarks have been apparent for the past month as fuel prices ease.  Seasonally, the broader transportation industry tends to remain under pressure through the third quarter while oil prices remain seasonally supported.  But with the strength in the US dollar pressuring commodity prices, weakness in the price of oil may “fuel” a move counter to seasonal norms.  The Dow Jones Transportation Average had previously held within a range of 10,000 to 10,800 and the recent break of this span projects an upside move to around 11,600.  Resistance at the all-time high can be found just above 11,400.

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Dow Jones Transportation Average Seasonality

$TRAN Relative to the S&P 500

Monthly Seasonal Dow Jones Transportation Average

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.91.

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Seasonal charts of companies reporting earnings today:

Altimmune, Inc. (ALT) Seasonal Chart Briggs & Stratton Corporation (BGG) Seasonal Chart CACI International, Inc. (CACI) Seasonal Chart  Cisco Systems, Inc. (CSCO) Seasonal Chart GWG Holdings, Inc (GWGH) Seasonal Chart Lifevantage Corporation (LFVN) Seasonal Chart Luxoft Holding, Inc. (LXFT) Seasonal Chart Macy's Inc (M) Seasonal Chart  MSG Networks Inc. (MSGN) Seasonal Chart NetApp, Inc. (NTAP) Seasonal Chart  Pointer Telocation Ltd. (PNTR) Seasonal Chart Real Goods Solar, Inc. (RGSE) Seasonal Chart SpartanNash Company (SPTN) Seasonal Chart Staffing 360 Solutions, Inc. (STAF) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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