Stock Market Outlook for November 29, 2019
S&P 500 Index testing the upper limit of an intermediate rising trend channel.
*** 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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Village Farms International, Inc. (TSE:VFF.TO) Seasonal Chart
B2Gold Corp. (TSE:BTO.TO) Seasonal Chart
Concho Resources Inc. (NYSE:CXO) Seasonal Chart
Precision Drilling Corp. (NYSE:PDS) Seasonal Chart
Patterson-UTI Energy, Inc. (NASD:PTEN) Seasonal Chart
Novagold Resources, Inc. (TSE:NG.TO) Seasonal Chart
Stryker Corp. (NYSE:SYK) Seasonal Chart
Trevali Resources Corp. (TSE:TV.TO) Seasonal Chart
Orvana Minerals Corp. (TSE:ORV.TO) Seasonal Chart
J.P. Morgan Chase & Co. (NYSE:JPM) Seasonal Chart
Federated Investors, Inc. (NYSE:FII) Seasonal Chart
Micron Technology, Inc. (NASD:MU) Seasonal Chart
Applied Materials, Inc. (NASD:AMAT) Seasonal Chart
Gibson Energy Inc. (TSE:GEI.TO) Seasonal Chart
The Markets
Stocks continue to grind higher as the typical holiday week tendencies give investors reason to be thankful when they sit down to dinner on Thursday evening. The S&P 500 Index added four-tenths, charting another record high. The large-cap benchmark is now intersecting with the upper limit to its intermediate rising trading range that spans between 2900 and 3150. Reaction over the coming days will be indicative of whether or not this hurdle is of importance to investors or merely just a mirage. Tendencies for the equity market surrounding the US Thanksgiving day holiday remain positive into the first few days of December. Looking for insight on how to allocate your portfolio for the month ahead? We are busy putting the finishing touches on our extensive monthly report for December. Subscribe now and we’ll send you this report, once complete, directly to your inbox.
Looking north of the border, a similar rising trendline can be drawn on the TSX Composite. The benchmark has been constrained by a rising hurdle that recently peaked around 17,000. The benchmark closed at 17,100 on Wednesday, suggesting a violation of this upside limit. Typically, three daily closes above a particular hurdle is prudent in order to confirm that the breakout is legitimate. The Canadian benchmark continues to show a trend of underformance versus equity benchmarks south of the border, however, that trend may be poised to shift in favour of Canadian equities in the month ahead. The TSX Composite tends to outperform the S&P 500 Index between the start of December and the beginning of March.
On the economic front, a report on US durable goods orders was released before Wednesday’s opening bell. The headline print indicated that orders in the US increased by 0.6% last month, far exceeding the consensus analyst estimate that called for a decline of 0.7%. Core capital goods were higher by 1.2%, which was also much stronger than the 0.1% increase that was forecast. Stripping out the seasonal adjustments, the value of manufacturers’ new orders for durable goods industries actually declined by 0.8% in October, which is stronger than the 4.0% decline that is average for this time of year. The result places the year-to-date change back above the seasonal average trend, albeit marginally, at 0.4% with just two months left in the year to report. The trend has been gyrating between above and below average levels all year as varying factors take a toll. We sent out further insight to subscribers intraday. Signup now to be included on our distribution list.
Sentiment on Wednesday, as gauged by the put-call ratio, ended slightly bullish at 0.94.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled for today.
S&P 500 Index
TSE Composite
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