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Stock Market Outlook for July 1, 2019


Happy Canada Day!

 

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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Molson Coors Brewing Co. (NYSE:TAP) Seasonal Chart

Molson Coors Brewing Co. (NYSE:TAP) Seasonal Chart

Cisco Systems, Inc. (NASD:CSCO) Seasonal Chart

Cisco Systems, Inc. (NASD:CSCO) Seasonal Chart

Royal Bank Of Canada (NYSE:RY) Seasonal Chart

Royal Bank Of Canada (NYSE:RY) Seasonal Chart

 

 

The Markets

Happy Canada Day!

happy-canada-day

Stocks closed firmly higher on Friday as investors executed their final transactions ahead of the close of the quarter.  The S&P 500 Index ended the session with a gain of just less than six-tenths of one percent, trimming early week losses.  For the week, the large-cap benchmark is down by just less than three-tenths of one percent, continuing to hold above support at the 20 and 50-week moving averages.  The benchmark remains on a weekly buy signal, according to last week’s bullish crossover with respect to MACD.  At this point, whether looking at the daily, weekly, or monthly look at the large-cap benchmark, the next move could be definitively higher or lower; the outcome of the G20 weekend over the weekend could present a catalyst.  We’ve presented a number of attributes that suggest that this market is supported below, but should the bears find something to latch on to, they will surely use the resistance at 2950 as the ceiling for this market.  The range bound trade over the past year and a half has kept a number of investors on the sidelines, therefore, should the break be higher and the range be broken, investors are expected to flood back into the market in an attempt to catch the leaving train.

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On the economic front, Statscan released Gross Domestic Product (GDP) figures for the month of April. In Canada, GDP increased by 0.3% in the spring month, which is marginally better than the 0.2% increase that was forecasted by analysts. The year-over-year pace now sits at +1.5%, improved from the +1.4% rate in the month prior. Stripping out the seasonal adjustments, GDP actually increased by 0.7% in April, which is marginally weaker than the 0.9% increase that is average for this time of year. The year-to-date pace is 0.9% below the seasonal average trend, improving from the 1.3% below average pace seen by this time last year.  We sent out further analysis pertaining to these results to subscribers, including highlighting the above average performance in certain categories that bode well for seasonal equity market trends.  Subscribe now to login and view this report.

Canada GDP - All industries Seasonal Chart

Also released: Canada Industrial Product Prices for May

Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.86.

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Seasonal charts of companies reporting earnings today:

Aethlon Medical, Inc. (AEMD) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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