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Stock Market Outlook for January 11, 2019


Biotech stocks performing well during their period of seasonal strength.

 

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:

Famous Daves of America, Inc. (NASD:DAVE) Seasonal Chart

Famous Daves of America, Inc. (NASD:DAVE) Seasonal Chart

Polyone Corp. (NYSE:POL) Seasonal Chart

Polyone Corp. (NYSE:POL) Seasonal Chart

Pengrowth Energy Corp. (NYSE:PGH) Seasonal Chart

Pengrowth Energy Corp. (NYSE:PGH) Seasonal Chart

Badger Daylighting Ltd (TSE:BAD) Seasonal Chart

Badger Daylighting Ltd (TSE:BAD) Seasonal Chart

Suncor Energy Inc.  (TSE:SU) Seasonal Chart

Suncor Energy Inc. (TSE:SU) Seasonal Chart

TMX Group (TSE:X) Seasonal Chart

TMX Group (TSE:X) Seasonal Chart

Pembina Pipeline Corp (TSE:PPL) Seasonal Chart

Pembina Pipeline Corp (TSE:PPL) Seasonal Chart

Marsh & McLennan Companies, Inc.  (NYSE:MMC) Seasonal Chart

Marsh & McLennan Companies, Inc. (NYSE:MMC) Seasonal Chart

ARC Resources Ltd (TSE:ARX) Seasonal Chart

ARC Resources Ltd (TSE:ARX) Seasonal Chart

Devon Energy Corporation  (NYSE:DVN) Seasonal Chart

Devon Energy Corporation (NYSE:DVN) Seasonal Chart

National Bank of Canada  (TSE:NA) Seasonal Chart

National Bank of Canada (TSE:NA) Seasonal Chart

Baytex Energy Trust  (TSE:BTE) Seasonal Chart

Baytex Energy Trust (TSE:BTE) Seasonal Chart

Crescent Point Energy Corp. (TSE:CPG) Seasonal Chart

Crescent Point Energy Corp. (TSE:CPG) Seasonal Chart

 

 

The Markets

Stocks gained for a fifth straight session on Thursday as investors continue to digest commentary from Fed officials.  The S&P 500 Index added just less than half of one percent, inching closer to the widely watched level of resistance at 2600.  Momentum indicators on the hourly chart remain in bullish territory as the benchmark attempts to push above its 200-hour moving average.  Support has been apparent in recent days at the 20-hour average.  Omitting the late November high, trendline resistance can be argued around 2625, less than 30 points above Thursday’s close.  Both the bears and the bulls will be watching these levels overhead closely with either side looking to sink their teeth into the subsequent reaction.  Given that the consensus in the market is for a rejection in this range overhead, a move to the contrary may provide the better bet.  We will also be monitoring the action closely.

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One of the better industry performers since the December low has been amongst the biotech stocks.  The widely traded biotech ETF (IBB) has recouped almost all of its December loss, trading back to resistance around its 200-day moving average.  The move is typical for this time of year as stocks in this market segment trade higher into the JP Morgan Health Care Conference, which just concluded on Thursday.  The industry can continue to perform well relative to the market into the month of February, at which time a period of seasonal weakness spanning March and April typically results in underperforming returns.

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Biotech Industry Seasonal Chart
S5BIOTX Index Relative to the S&P 500S5BIOTX Index Relative to the Sector

S5BIOTX Index Monthly Averages

Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.13.

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Seasonal charts of companies reporting earnings today:

Infosys Limited (INFY) Seasonal Chart 

 

 

S&P 500 Index

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TSE Composite

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