Stock Market Outlook for October 28, 2019
Let the best six months of the year for stocks begin.
*** 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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CIGNA Corp. (NYSE:CI) Seasonal Chart
Aecom Technology Corp. (NYSE:ACM) Seasonal Chart
The Descartes Systems Group, Inc. (TSE:DSG.TO) Seasonal Chart
Kelso Technologies, Inc. (TSE:KLS.TO) Seasonal Chart
Fuel Tech Inc. (NASD:FTEK) Seasonal Chart
Nutrien Ltd. (NYSE:NTR) Seasonal Chart
KB Home (NYSE:KBH) Seasonal Chart
First American Corp. (NYSE:FAF) Seasonal Chart
Verde Potash Plc (TSE:NPK.TO) Seasonal Chart
Alamo Group, Inc. (NYSE:ALG) Seasonal Chart
Lennox Intl Inc. (NYSE:LII) Seasonal Chart
Vulcan Materials Co. (NYSE:VMC) Seasonal Chart
CI Financial Corp. (TSE:CIX.TO) Seasonal Chart
Stantec, Inc. (TSE:STN.TO) Seasonal Chart
Advanced Emissions Solutions, Inc. (NASD:ADES) Seasonal Chart
American Software, Inc. (NASD:AMSWA) Seasonal Chart
Mednax, Inc. (NYSE:MD) Seasonal Chart
Toll Brothers, Inc. (NYSE:TOL) Seasonal Chart
IGM Financial Inc. (TSE:IGM.TO) Seasonal Chart
Bunge Ltd. (NYSE:BG) Seasonal Chart
J.B. Hunt Transport Services, Inc. (NASD:JBHT) Seasonal Chart
Hubbell, Inc. (NYSE:HUBB) Seasonal Chart
The Markets
Stocks closed higher on Friday as investors shook off an earnings shock from Amazon. The S&P 500 Index closed higher by just over four-tenths of one percent, reaching towards the all-time high at the height of the session. The high 3027.29 was within a fraction of a point from the all-time intraday high of 3027.98 charted on July 26th. Major moving averages are all pointing higher, giving the bias towards an upside break, but it remains apparent that investors are waiting for a catalyst to fuel the move. Investors were noticeably risk-on during the session as technology and materials topped the leaderboard, while consumer staples, utilities, and REITs, this summer’s defensive trade, closed in the red.
For the week, the large-cap benchmark was higher by 1.22%, remaining supported by its 20-week moving average. An intermediate trend channel on the weekly look shows a rising range between 2875 and 3125.
Today marks the average start to the strongest six months of the year for stocks and investors that have chosen to wait for the date itself, rather than heeding the positive technical signals triggered over the past few weeks (or even months) will have the dilemma of having to buy into the market at all-time highs. This is yet another year that the Sell in May and Go Away crowd will be disappointed that they were unable to buy in at lower levels following the sales of equity positions at the start of May. As our followers will know, we promote a three pronged approach incorporating seasonal, technical, and fundamental analysis, a strategy that has allowed us to mitigate the May and August slides, while taking advantage of the summer rally in June/July. We have taken advantage of the weakness in stocks in August and the start of October to add to seasonally favoured positions to become fully invested. Our Seasonal Advantage Portfolio that we manage in partnership with Castlemoore has continuously charted new highs throughout the year, even during the summer hiatus that saw range bound activity across a number of benchmarks throughout the third quarter.
Soon to be released…. We are busy putting the finishing touches on our monthly outlook for November, providing insight on how to position your portfolio for the month(s) ahead. Signup now and we’ll send you this report directly to your inbox when it is complete.
Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.84.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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