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Stock Market Outlook for April 16, 2019


Number of new 52-week highs on the NYSE hits the highest level since January of 2018.

 

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:

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Westport Innovations, Inc. (TSE:WPRT.TO) Seasonal Chart

Westport Innovations, Inc. (TSE:WPRT.TO) Seasonal Chart

Franco-Nevada Corp. (NYSE:FNV) Seasonal Chart

Franco-Nevada Corp. (NYSE:FNV) Seasonal Chart

The Stars Group Inc. (NASD:TSG) Seasonal Chart

The Stars Group Inc. (NASD:TSG) Seasonal Chart

Layne Christensen Co. (NASD:LAYN) Seasonal Chart

Layne Christensen Co. (NASD:LAYN) Seasonal Chart

 

 

The Markets

Stocks drifted slightly lower on Monday as investors digested the gains from the week just past.  The S&P 500 Index shed just less than a tenth of a percent, holding above the short-term ascending triangle that was highlighted late last week.  The short-term continuation pattern suggests an upside target of 2930, which is a hair away from the all-time high around 2940.  The percent of stocks on the S&P 500 Index above their 200-day moving averages continues to make progress above 62.5%, a level that we’ve frequently highlighted as being the dividing line between a stable and unstable market.  With an increasing number of stocks regaining this long-term moving average as support, the market can continue its progression higher.

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The improving technical profiles of equities is apparent in the number of stocks on the NYSE making new 52-week highs.  On Monday despite the downbeat session, the number of stocks achieving a new 52-week high hit 256, the highest level since January of last year.  The indicator has come storming back from a low of 2 realized during those nail-biting sessions just prior to Christmas day.   That low was the smallest number of new 52week highs since March of 2009.  As we suggested in a recent report, this is a market that is increasingly breaking down barriers, which is a bullish characteristic.

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On the economic front, a report on manufacturer sentiment in the New York region came in better than expected.  The headline print of April’s Empire Fed Manufacturing survey showed that the general business conditions index rebounded to +10.1 from +3.7 previous.  Analysts were expecting a print of +6.8.  Stripping out the seasonal adjustments, the actual level was +18.9, which is above the +17.2 that is average for this time of year.  Coming into the year, these soft gauges of the health of the manufacturing economy had been below average as weather took a toll on broader activity, but with the warmer spring weather now upon us, strength has returned.  Manufacturing typically sees a big rebound in activity into the spring, which gives lift to core cyclical equities in the energy, materials, and industrial sectors.  Seasonally, the Empire State Manufacturing Survey tends to remain upbeat into May, then dips into the start of summer as the factory shutdown period takes a toll on activity. We’ll obtain further insight on the health of the manufacturing economy on Tuesday when the report on industrial production for the month of March is released.

Empire State General Business Conditions Index Seasonal Chart

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

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Seasonal charts of companies reporting earnings today:

Bank of America Corporation (BAC) Seasonal Chart BlackRock, Inc. (BLK) Seasonal Chart Comerica Incorporated (CMA) Seasonal Chart Consolidated-Tomoka Land Co. (CTO) Seasonal Chart CSX Corporation (CSX) Seasonal Chart Destination Maternity Corporation (DEST) Seasonal Chart First Horizon National Corporation (FHN) Seasonal Chart Fulton Financial Corporation (FULT) Seasonal Chart Hancock Whitney Corporation (HWC) Seasonal Chart Hope Bancorp, Inc. (HOPE) Seasonal Chart Interactive Brokers Group, Inc. (IBKR) Seasonal Chart International Business Machines Corporation (IBM) Seasonal Chart Johnson & Johnson (JNJ) Seasonal Chart Mellanox Technologies, Ltd. (MLNX) Seasonal Chart Mercantile Bank Corporation (MBWM) Seasonal Chart Netflix, Inc. (NFLX) Seasonal Chart Progressive Corporation (The) (PGR) Seasonal Chart Prologis, Inc. (PLD) Seasonal Chart United Community Financial Corp. (UCFC) Seasonal Chart United Continental Holdings, Inc. (UAL) Seasonal Chart United Financial Bancorp, Inc. (UBNK) Seasonal Chart UnitedHealth Group Incorporated (UNH) Seasonal Chart WesBanco, Inc. (WSBC) Seasonal Chart Wipro Limited (WIT) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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