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Stock Market Outlook for March 30, 2020


TSX Composite turns lower from gap resistance as the trend of underperformance versus US stocks continues.

 

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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CAE, Inc. (TSE:CAE.TO) Seasonal Chart

CAE, Inc. (TSE:CAE.TO) Seasonal Chart

Zions Bancorp (NASD:ZION) Seasonal Chart

Zions Bancorp (NASD:ZION) Seasonal Chart

Companhia de Saneamento (NYSE:SBS) Seasonal Chart

Companhia de Saneamento (NYSE:SBS) Seasonal Chart

Vivint Solar Inc. (NYSE:VSLR) Seasonal Chart

Vivint Solar Inc. (NYSE:VSLR) Seasonal Chart

GlaxoSmithKline plc (ADR) (NYSE:GSK) Seasonal Chart

GlaxoSmithKline plc (ADR) (NYSE:GSK) Seasonal Chart

Assurant Inc. (NYSE:AIZ) Seasonal Chart

Assurant Inc. (NYSE:AIZ) Seasonal Chart

Enerplus Corp. (NYSE:ERF) Seasonal Chart

Enerplus Corp. (NYSE:ERF) Seasonal Chart

City Office REIT, Inc. (NYSE:CIO) Seasonal Chart

City Office REIT, Inc. (NYSE:CIO) Seasonal Chart

Morguard North American Residential REIT (TSE:MRG-UN.TO) Seasonal Chart

Morguard North American Residential REIT (TSE:MRG-UN.TO) Seasonal Chart

 

 

The Markets

Stocks dipped on Friday, giving back some of the euphoric gains achieved through the middle of the week that saw the Dow Jones Industrial Average gain over 20% in just three sessions.  The S&P 500 Index closed lower by 3.37%, charting an inside candlestick that saw the high and low remain within the span of the prior day’s range.  Resistance can be implied by the declining 20-day moving average, which now hovers at 2657.  Momentum indicators continue to point higher following the MACD buy signal triggered during Thursday’s session, however, the gyrations remain characteristic of a bear market trend.  A gap lower opened at the start of trade around 2575 presented a hurdle for the short-term traders to contend with late in the session, a level of resistance that was eventually sold into.  We’ll be looking for signs of support around 2450 to derive a more solid base for the apparent shift in the short-term trend from negative to positive as the rebound rally attempts to entice sidelined investors.  Looking for more technical analysis of the market?  In our market outlook that we deliver to subscribers, we provide further insight and guidance not available in our publicly available report.  Subscribe now to gain all of the benefits that Equity Clock offers.

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Soon to be released…

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North of the border, the TSX Composite was lower by 5.11% on Friday, opening a gap around 13,000 that traders didn’t even attempt to fill intraday.  The index had traded back to the open gap around 14,000 during the middle of the week, a level that capped the recent rebound.  The Canadian benchmark has underperformed US counterparts in this market decline and the trend continues to point to more of the same moving forward.  Readers might recall that we rotated away from the Canadian benchmark on February 27th, our timing of which was impeccable.  Prior to that date, Canadian stocks had been outperforming US counterparts since the year began as a result of the more defensive characteristics encompassed within, mainly the result of the exposure to gold and the high yielding constituents in the Canadian banking, REIT, and utility sectors.  However, the knock-on effects from the decline in oil have taken a toll on these traditionally lower beta segments of the market, in most cases forcing them down more than the broad market return.  Seasonally, the TSX tends to peak relative to US stocks at the end of February then underperform US stocks through March and April, as it has done.  As long as oil remains below $30, it is difficult to be enticed by Canadian equities, overall, as the cascading impact on the Canadian economy is likely to ripple through each sector.  The situation remains fluid and we’ll monitor accordingly.

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http://charts.equityclock.com/seasonal_charts/indexes/$TSX_RelativeToSPX.PNG

Sentiment on Friday, as gauged by the put-call ratio, ended bearish at 1.07.

 

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Seasonal charts of companies reporting earnings today:

Braskem S.A. Seasonal Chart RH Seasonal Chart Cal-Maine Foods, Inc. Seasonal Chart China Yuchai International Limited Seasonal Chart Village Farms International, Inc. Seasonal Chart Dyadic International, Inc. Seasonal Chart Sierra Metals Inc. Seasonal Chart EDAP TMS S.A. Seasonal Chart Alpine Immune Sciences, Inc. Seasonal Chart Dare Bioscience, Inc. Seasonal Chart Titan Pharmaceuticals, Inc. Seasonal Chart Neovasc Inc. Seasonal Chart Usio, Inc. Seasonal Chart Flexible Solutions International Inc. Seasonal Chart CynergisTek, Inc. Seasonal Chart Eastside Distilling, Inc. Seasonal Chart IZEA Worldwide, Inc. Seasonal Chart Sunworks, Inc. Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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