Stock Market Outlook for November 13, 2019
Health care sector consolidating above the neckline of what looks like a head-and-shoulders bottoming pattern.
*** 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.
Assembly Biosciences, Inc. (NASD:ASMB) Seasonal Chart
News Corp. (NASD:NWSA) Seasonal Chart
Federal Agricultural Mortgage (NYSE:AGM) Seasonal Chart
KAR Auction Services Inc. (NYSE:KAR) Seasonal Chart
Photronics, Inc. (NASD:PLAB) Seasonal Chart
Harvard Bioscience, Inc. (NASD:HBIO) Seasonal Chart
Burlington Stores, Inc. (NYSE:BURL) Seasonal Chart
Plaza Retail REIT (TSE:PLZ/UN.TO) Seasonal Chart
The J. M. Smucker Co. (NYSE:SJM) Seasonal Chart
High Liner Foods Inc. (TSE:HLF.TO) Seasonal Chart
Interpublic Grp Of Cos (NYSE:IPG) Seasonal Chart
CIENA Corp. (NYSE:CIEN) Seasonal Chart
The Markets
Another record closing high for stocks, but continued degradation in momentum suggests that investors are losing the desire to buy around the all-time peak. The S&P 500 Index added just less than two-tenths of one percent, remaining elevated above major moving averages. Momentum indicators on the hourly look of the large-cap benchmark, while continuing to show bullish characteristics, are negatively diverging from price, suggesting waning buying pressures. Still a trend of higher-highs and higher-lows remains intact. The benchmark has gone 20 sessions with a trading range, from high to low, in any given day of less than one percent. This is typical of a market that is having difficulty finding the next marginal buyer to drive prices higher. The last time the benchmark saw a similar scenario was at the end of April and then before that at the beginning of October of last year; each preceded a market pullback of around 5% to 10% in the month that followed. First level of support on the downside is the 20-day moving average at 3041 and then the major horizontal hurdle at 3028. Until there is a break of the horizontal barrier, which was previous resistance, it is assumed that a positive rising trend is intact.
Health care stocks topped the leaderboard on Tuesday with the SPDR Heath Care Sector ETF adding six-tenths of one percent. The sector ETF broke out above significant horizontal resistance around $94 in the past few weeks, a level that was tested as a level of support in recent days. The horizontal hurdle could be argued as proving the neckline to a reverse head-and-shoulders pattern, a bullish setup that projects a theoretical target of $14 higher than the breakout zone. Theory and reality don’t always align, however, the bias remains to the upside with major moving averages pointing higher. Seasonally, the average period of strength for the sector runs from April 25th to December 4th, however, rotation from some of the move defensive areas to the higher beta counterparts typically become prudent later in the period.
Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.88.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
