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Stock Market Outlook for February 6, 2020


Energy Sector ETF bouncing back from significant support around $53.

 

Real Time Economic Calendar provided by Investing.com.

 

*** 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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General Mills Inc. (NYSE:GIS) Seasonal Chart

General Mills Inc. (NYSE:GIS) Seasonal Chart

Loblaw Companies Ltd. (TSE:L.TO) Seasonal Chart

Loblaw Companies Ltd. (TSE:L.TO) Seasonal Chart

FTI Consulting, Inc. (NYSE:FCN) Seasonal Chart

FTI Consulting, Inc. (NYSE:FCN) Seasonal Chart

Red Robin Gourmet Burgers Inc. (NASD:RRGB) Seasonal Chart

Red Robin Gourmet Burgers Inc. (NASD:RRGB) Seasonal Chart

Globe Life Inc. (NYSE:GL) Seasonal Chart

Globe Life Inc. (NYSE:GL) Seasonal Chart

ProShares Ultra MidCap400 (NYSE:MVV) Seasonal Chart

ProShares Ultra MidCap400 (NYSE:MVV) Seasonal Chart

Invesco DWA Consumer Staples Momentum ETF (NASD:PSL) Seasonal Chart

Invesco DWA Consumer Staples Momentum ETF (NASD:PSL) Seasonal Chart

 

 

The Markets

Stocks rallied for a third day as investors continue to look past the risks relating to the outbreak of the coronavirus and find value in beaten down names.  The S&P 500 Index gained 1.13%, charting a new record closing high.  The benchmark remains around three points below the all-time intraday peak at 3337.77. 

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Trading action over recent weeks has been dictated by a number of gaps, both on the upside and the downside.  With the surge in equity prices in recent days, a couple more gaps have now been opened.  The first gap can be seen around previous short-term declining trendline resistance around 3270;  the gap spans between 3255 and 3280.  The other gap was opened during Wednesday’s session between 3305 and 3320.  Each of these zones are in positions of support, but there is an elevated risk that the gaps get filled before the benchmark moves definitively higher.  The benchmark has reached short-term overbought levels, according to stochastics and the relative strength index (RSI), which may exhaust short-term buying momentum.

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The next catalyst for stocks is likely the non-farm payroll report, the expectations for which received a boost following a report from ADP on Wednesday.  ADP indicates that 291,000 payrolls were added in January, which is almost double the consensus estimate that called for a rise of 154,000.  The better than expected result is being attributed to the warmer than average weather in the first month of the year.  Analysts are expecting the addition of 158,000 payrolls when the government report is released on Friday.  Stripping out the seasonal adjustments, payrolls actually decline by 2.1%, on average, in the first month of the year, which would imply the actual decline of 3.2 million jobs.  Layoffs of holiday workers makes this the weakest month of the year for the labour market, but in recent years the impact has become less severe.  The swings in retail employment around the end of the year have become less extreme amidst the evolution of consumer activity away from brick-and-mortar stores.  We’ll provide a breakdown of the report for subscribers on Friday.  Signup now to be included on this distribution when it is released.

Total Nonfarm Seasonal Chart

Leading stocks higher on Wednesday were shares of energy companies as the price of oil rebounded from recent lows below $50.  The Energy Sector ETF (XLE) gained 3.76%, bouncing back from its recent oversold decline.  Despite the slight breach of support in recent days, the ETF continues to hold predominantly above $53.  The upper limit of a multi-month range is apparent just above $61.  Seasonally, the energy sector tends to gain through May.  Subscribers received further insight pertaining to the energy sector intraday.  Signup now and we’ll send you this timely analysis.

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Energy Sector Seasonal Chart

Sentiment on Wednesday, as gauged by the put-call ratio, ended slightly bullish at 0.94.

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Seasonal charts of companies reporting earnings today:

Bristol-Myers Squibb Company Seasonal Chart Philip Morris International Inc Seasonal Chart Sanofi Seasonal Chart Becton, Dickinson and Company Seasonal Chart S&P Global Inc. Seasonal Chart Cigna Corporation Seasonal Chart Estee Lauder Companies, Inc. (The) Seasonal Chart T-Mobile US, Inc. Seasonal Chart Intercontinental Exchange Inc. Seasonal Chart Activision Blizzard, Inc Seasonal Chart BCE, Inc. Seasonal Chart Regeneron Pharmaceuticals, Inc. Seasonal Chart Yum! Brands, Inc. Seasonal Chart Tyson Foods, Inc. Seasonal Chart Motorola Solutions, Inc. Seasonal Chart FleetCor Technologies, Inc. Seasonal Chart Willis Towers Watson Public Limited Company Seasonal Chart Twitter, Inc. Seasonal Chart Fiat Chrysler Automobiles N.V. Seasonal Chart VeriSign, Inc. Seasonal Chart Ball Corporation Seasonal Chart Kellogg Company Seasonal Chart Nokia Corporation Seasonal Chart Fortinet, Inc. Seasonal Chart CDW Corporation Seasonal Chart Seattle Genetics, Inc. Seasonal Chart Mettler-Toledo International, Inc. Seasonal Chart Old Dominion Freight Line, Inc. Seasonal Chart Xylem Inc. Seasonal Chart Cardinal Health, Inc. Seasonal Chart ArcelorMittal Seasonal Chart KB Financial Group Inc Seasonal Chart Take-Two Interactive Software, Inc. Seasonal Chart Wynn Resorts, Limited Seasonal Chart Alnylam Pharmaceuticals, Inc. Seasonal Chart Medical Properties Trust, Inc. Seasonal Chart NortonLifeLock Inc. Seasonal Chart Zendesk, Inc. Seasonal Chart Carlisle Companies Incorporated Seasonal Chart Snap-On Incorporated Seasonal Chart Brookfield Renewable Partners L.P. Seasonal Chart National Oilwell Varco, Inc. Seasonal Chart News Corporation Seasonal Chart Tapestry, Inc. Seasonal Chart Skechers U.S.A., Inc. Seasonal Chart AGCO Corporation Seasonal Chart New York Times Company (The) Seasonal Chart World Wrestling Entertainment, Inc. Seasonal Chart Macerich Company (The) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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