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Stock Market Outlook for November 13, 2018

S&P 500 failed to hold gap support around 2755; a test of the open gap around 2700 may be next.

 

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:

Medical Facilities (TSE:DR) Seasonal Chart

Medical Facilities (TSE:DR) Seasonal Chart

Chartwell Retirement (TSE:CSH-UN) Seasonal Chart

Chartwell Retirement (TSE:CSH-UN) Seasonal Chart

Capital Power (TSE:CPX) Seasonal Chart

Capital Power (TSE:CPX) Seasonal Chart

Altius Minerals Corporation (TSE:ALS) Seasonal Chart

Altius Minerals Corporation (TSE:ALS) Seasonal Chart

Chorus Aviation Inc (TSE:CHR) Seasonal Chart

Chorus Aviation Inc (TSE:CHR) Seasonal Chart

Corus Entertainment Inc. (TSE:CJR.B) Seasonal Chart

Corus Entertainment Inc. (TSE:CJR.B) Seasonal Chart

Enbridge Income Fund Holdings (TSE:ENF) Seasonal Chart

Enbridge Income Fund Holdings (TSE:ENF) Seasonal Chart

Cogeco Cable Inc.  (TSE:CCA) Seasonal Chart

Cogeco Cable Inc. (TSE:CCA) Seasonal Chart

ATCO Ltd. (TSE:ACO.X) Seasonal Chart

ATCO Ltd. (TSE:ACO.X) Seasonal Chart

Precision Drilling Corporation (TSE:PD) Seasonal Chart

Precision Drilling Corporation (TSE:PD) Seasonal Chart

Boston Pizza Royalties Income Fund (TSE:BPF-UN) Seasonal Chart

Boston Pizza Royalties Income Fund (TSE:BPF-UN) Seasonal Chart

Interpublic Group of Companies, Inc.  (NYSE:IPG) Seasonal Chart

Interpublic Group of Companies, Inc. (NYSE:IPG) Seasonal Chart

 

 

The Markets

Stocks sold off on Monday as Tech stocks followed through with Friday’s weakness.  The S&P 500 Index shed 1.97%, filling the gap that was opened following the US mid-term election and breaking back below its 200-day moving average.  A look at the hourly chart of the large-cap benchmark shows the action.  The benchmark failed to find support at 2755, a level that has derived a couple of gaps over the past few weeks.  The next level to watch is the open gap around 2700, perhaps the last zone to save the market from a more pronounced decline.  Momentum indictors on this hourly look have fallen back to oversold territory, working off the overbought state following last Wednesday’s high.  In the Seasonal Advantage Portfolio that we manage in partnership with CastleMoore, we slightly trimmed portfolio beta on Friday, reflecting the increasing risks in the Technology Sector, the largest weight within many broad market benchmarks.  Interested in learning more? Email us at seasonalportfolio@equityclock.com.

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The technology sector has typically been one of the strongest segments of the market through the fourth quarter, therefore the weakness that has been apparent since the start of October is no doubt concerning.  The S&P 500 Technology Sector Index is back around the October lows, failing to hold any ground following the recent rebound attempt.  The benchmark  is turning lower right at its 200-day moving average, a level that it has only fallen below during times of economic weakness over the past ten years.  The last time it held below this level was in the correction of 2015 and 2016 when an earnings recession and manufacturing downturn took a toll on cyclical areas of the market.  The price action in the equity and commodity market in recent weeks is suggestive of a period of economic weakness ahead, signs of which may already be materializing.  We have complied a list of fundamental concerns and published them in a special report available to Equity Clock Subscribers.  Simply log into the Seasonal Chart Database and on the home page you will see a link to the report titled Ballooning Economic Concerns.  For investors employing a three-pronged approach, such as what we enact with the Seasonal Advantage Portfolio, this report is not to be missed.  Not a member yet?  Simply visit the following link to subscribe: https://charts.equityclock.com/subscribe

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Technology Sector Seasonal Chart

TECHNOLOGY Relative to the S&P 500
TECHNOLOGY Relative to the S&P 500

TECHNOLOGY Monthly Averages

Sentiment on Monday, as gauged by the put-call ratio, ended bearish at 1.19.

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Sectors and Industries entering their period of seasonal strength:

NIKKEI 225 Index Seasonal Chart

$NIKK Relative to the S&P 500
$NIKK Relative to the S&P 500

$NIKK Monthly Averages

 

 

Seasonal charts of companies reporting earnings today:

Advance Auto Parts Inc (AAP) Seasonal Chart Aramark (ARMK) Seasonal Chart Beazer Homes USA, Inc. (BZH) Seasonal Chart CAE Inc (CAE) Seasonal Chart Capricor Therapeutics, Inc. (CAPR) Seasonal Chart  Del Frisco's Restaurant Group, Inc. (DFRG) Seasonal Chart Determine, Inc. (DTRM) Seasonal Chart Dynatronics Corporation (DYNT) Seasonal Chart Energizer Holdings, Inc. (EPC) Seasonal Chart Famous Dave's of America, Inc. (DAVE) Seasonal Chart Hillenbrand Inc (HI) Seasonal Chart Hollysys Automation Technologies, Ltd. (HOLI) Seasonal Chart Home Depot, Inc. (The) (HD) Seasonal Chart Magic Software Enterprises Ltd. (MGIC) Seasonal Chart Navios Maritime Partners LP (NMM) Seasonal Chart Northern Technologies International Corporation (NTIC) Seasonal Chart Palatin Technologies, Inc. (PTN) Seasonal Chart  Redhill Biopharma Ltd. (RDHL) Seasonal Chart Superconductor Technologies Inc. (SCON) Seasonal Chart    Tyson Foods, Inc. (TSN) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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Seasonal Advantage Portfolio by CastleMoore

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