Stock Market Outlook for December 5, 2019
S&P 500 has filled the gap that was opened during Tuesday’s session, but broken trendine support is in a position of resistance overhead.
*** 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.
Stakeholder Gold Corp. (TSXV:SRC.V) Seasonal Chart
Delek US Holdings, Inc. (NYSE:DK) Seasonal Chart
Century Casinos, Inc. (NASD:CNTY) Seasonal Chart
Cominar Real Estate Investment Trust (TSE:CUF/UN.TO) Seasonal Chart
Teranga Gold Corp. (TSE:TGZ.TO) Seasonal Chart
Surmodics, Inc. (NASD:SRDX) Seasonal Chart
Equity Commonwealth REIT (NYSE:EQC) Seasonal Chart
Alacer Gold Corp. (TSE:ASR.TO) Seasonal Chart
Morguard Real Estate Investment Trust (TSE:MRT/UN.TO) Seasonal Chart
The Markets
Stocks rebounded from Tuesday’s selloff to close the gap opened in the prior session. The S&P 500 Index added just over six-tenths of one percent on Wednesday, trading back to the lows set in the prior session. The benchmark remains below its 50-hour moving average, which is likely to provide a lid to the benchmark over the short term, unless some catalyst can be realized to fuel a breakout. Momentum indicators on the hourly look are showing bearish characteristics, a shift from the bullish trend that had been intact since the start of October. Previous horizontal resistance at 3025 will be widely scrutinized on the downside as investors that missed the breakout run from the October low seek to enter market positions in order to attempt to play catch-up by the end of the year. I touched on some of the tendencies for the equity market in my regular appearance on BNN Bloomberg’s Market Call Tonight that aired on Wednesday evening. Navigate to the following link for the clip of my market outlook: https://www.bnnbloomberg.ca/video/jon-vialoux-s-market-outlook~1846850
On the economic front, the Bank of Canada kept its benchmark rate unchanged, marking the ninth consecutive meeting the central bank has opted to sit tight with the status quo. The bank has remained steadfast despite many others choosing to cut rates in order to support the broader economy. The Canadian Dollar rallied following the announcement given the diminished expectation that the central back would be forced to follow suit with other monetary authorities around the globe. The Canadian Dollar Index bounced solidly around 75, just below the currency benchmark’s 200-day moving average. The currency has been range-bound for a number of months between 75 and 77, suggesting the next target could be the upper limit of the range. In the Seasonal Advantaged Portfolio that we manage in partnership with Castlemoore, we have been diligent about ensuring that our portfolio exposure is hedged against the impact of an appreciating Canadian currency given that the impetus for the Bank of Canada to cut rates was absent. This is contrary to seasonal norms that call for a weaker Canadian dollar through the fourth quarter.
Sentiment on Wednesday, as gauged by the put-call ratio, ended neutral at 0.98.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
