Stock Market Outlook for October 11, 2019
S&P 500 rebounds back to short-term declining trendline resistance; the next move will depend on the outcome of trade negotiations on Friday.
*** 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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Texas Roadhouse Inc. (NASD:TXRH) Seasonal Chart
CVD Equipment Corp. (NASD:CVV) Seasonal Chart
Equinix, Inc. (NASD:EQIX) Seasonal Chart
Mohawk Inds, Inc. (NYSE:MHK) Seasonal Chart
Silicom Ltd. (NASD:SILC) Seasonal Chart
Brooks – PRI Automation, Inc. (NASD:BRKS) Seasonal Chart
Mistras Group Inc. (NYSE:MG) Seasonal Chart
Icici Bank Ltd. (NYSE:IBN) Seasonal Chart
ASGN Inc. (NYSE:ASGN) Seasonal Chart
Heico Corp. (NYSE:HEI/A) Seasonal Chart
Axon Enterprise, Inc. (NASD:AAXN) Seasonal Chart
Akorn Inc. (NASD:AKRX) Seasonal Chart
SNC-Lavalin Group, Inc. (TSE:SNC.TO) Seasonal Chart
Synaptics, Inc. (NASD:SYNA) Seasonal Chart
SeaChange Intl, Inc. (NASD:SEAC) Seasonal Chart
OPSENS Inc. (TSE:OPS.TO) Seasonal Chart
Resolute Forest Products Inc. (NYSE:RFP) Seasonal Chart
The Markets
Stocks closed higher on Thursday following another volatile 24 hours that saw saw futures initially plunge following Wednesday’s session only to recoup their losses moments later following a flurry of headlines pertaining to trade. The S&P 500 Index added just under two-thirds of one percent, making progress in closing the gap that was opened during Tuesday’s session. The benchmark tested declining trendline resistance around the highs of the session, halting the advance on the day. The first step towards the conclusion of the short-term trend of lower-lows and lower-highs has been achieved with the lower-high charted over the past day. A move above 2960 is required to start a new trend of higher-highs and higher-lows.
On the economic front, the US Consumer Price Index (CPI) was released before Thursday’s opening bell. The headline print of September’s report was unchanged, leaving the year-over-year increase unchanged at 1.7%. Less food and energy, the inflation gauge ticked higher by a tenth of a percent, which was not enough to alter the 2.4% year-over-year pace. Stripping out the seasonal adjustments, the consumer price index for all urban consumers increased by 0.1% in September, which is half of the 0.2% increase that is average for this final month of the third quarter. The year-to-date change now sits higher by 2.2%, which is four-tenths of one percent below the seasonal average trend. We sent out further insight to subscribers intraday. Subscribe now and we’ll send you our report.
Also on the economy, weekly jobless claims showed that the initial claimant count remains around cycle lows. At 210,000, initial claims are down 10,000 from the week prior and the level is now just 4,000 claims higher than the multi-month low charted at the beginning of September of 206,000. The cycle low, so far, has been 193,000, realized in April. The year-to-date change in the claimant count remains below average, not foretelling of any strains in the labor market.
Sentiment on Thursday, as gauged by the put-call ratio, ended neutral at 1.00.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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