Stock Market Outlook for April 5, 2019
Market has taken a month and a half to grind away at the long red candlestick recorded in one session in October.
*** 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:
Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.
Walter Investment Management Corp. (NYSE:WAC) Seasonal Chart
Clearwater Seafoods Inc. (TSE:CLR.TO) Seasonal Chart
Worthington Industries, Inc. (NYSE:WOR) Seasonal Chart
Freehold Royalties Ltd. (TSE:FRU.TO) Seasonal Chart
Richards Packaging Income Fund (TSE:RPI/UN.TO) Seasonal Chart
The Markets
Stocks inched higher on Thursday amidst ongoing trade optimism as negotiations between the US and China progress. The S&P 500 Index added two-tenths of one percent, moving back to levels last seen at the start of October. For the last month and a half, the large-cap benchmark has been eating through the supply attributed to the long red candlestick charted on October 10th, which started the fourth quarter meltdown. The market has effectively absorbed this supply that threatened the potential retest of the previous high at 2940 and a move back to this all-time high hurdle is increasingly likely. Cyclical sectors are dominating the leaderboard, which suggests positive risk sentiment.
Market performance in the days ahead is likely to be influenced by the monthly employment report, which is slated to be released before Friday’s opening bell. Analysts are expecting an increase in payrolls for March of 170,000, a significant improvement from the 20,000 increase reported for February. Non-adjusted, the average increase in payrolls for the month of March is 0.6%, which would suggest an actual increase of approximately 895,000. Employment in the US has been trending above average for the past many years and the below average pace in jobless claims through the survey period suggests strength in payroll growth should be sustained. Seasonally, payrolls typically rise through the spring as employers hire for summer positions. Subscribers will receive our analysis of the March employment report during Friday’s session. Want to be included on our distributions? Subscribe now.
Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.81.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
