Contact | RSS Feed

Stock Market Outlook for April 9, 2020


The market will be seeking a solution to ballooning oil inventories when G20 energy ministers meet on Friday.

 

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:

Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.

Cintas Corp. (NASD:CTAS) Seasonal Chart

Cintas Corp. (NASD:CTAS) Seasonal Chart

Manhattan Associates, Inc. (NASD:MANH) Seasonal Chart

Manhattan Associates, Inc. (NASD:MANH) Seasonal Chart

Terreno Realty Corp. (NYSE:TRNO) Seasonal Chart

Terreno Realty Corp. (NYSE:TRNO) Seasonal Chart

National Bank Holdings Corp. (NYSE:NBHC) Seasonal Chart

National Bank Holdings Corp. (NYSE:NBHC) Seasonal Chart

Edison Intl, Inc. (NYSE:EIX) Seasonal Chart

Edison Intl, Inc. (NYSE:EIX) Seasonal Chart

NorthWestern Corp. (NYSE:NWE) Seasonal Chart

NorthWestern Corp. (NYSE:NWE) Seasonal Chart

AeroVironment Inc. (NASD:AVAV) Seasonal Chart

AeroVironment Inc. (NASD:AVAV) Seasonal Chart

ANSYS, Inc. (NASD:ANSS) Seasonal Chart

ANSYS, Inc. (NASD:ANSS) Seasonal Chart

 

 

The Markets

Stocks rallied on Wednesday as the bears let loose of their grip on the market given further indications that the global daily increase of coronavirus cases is peaking.  The S&P 500 Index jumped by 3.41%, trading back to the highs charted during the previous session.  As pointed out yesterday, momentum indicators, including MACD and RSI, are increasingly neutralizing, alleviating a significantly stretched condition that was apparent through the month of March.  There still remains no signs that these indicators are peaking. Read more of our technical analysis in our market outlook emailed directly to subscribers.  Signup now and we’ll get you started.

image

Leading the action on Wednesday were those sectors that sold off the most during March’s decline.  Traders continue to shed bearish bets (shorts) given the break of levels of short-term resistance in recent days.  The Energy (XLE), Financial (XLF), and Material (XLB) ETFs were higher by over 4%.  The Utilities ETF (XLU), which had been underperforming the market since earlier in March, was higher by 5.45%.  And the REIT ETF (IYR), which was one of the hardest hit sectors in recent weeks, realized a gain of 7.16% on Wednesday.  Each have now broken above their end of March highs, confirming a short-term trend for each of higher-highs and higher-lows.  Meanwhile, Consumer Staples (XLP) and Technology (XLK), the outperformers during the market slide, lagged the market return on the day.  The areas that had outperformed through the past month have approached levels of long-term resistance around their respective 50 and 200-day moving averages, leaving little upside potential for investors to benefit from.  The laggards remain well below equivalent hurdles, therefore investors are reaching out on the risk spectrum in an effort to jump on the fastest train out of the March 23rd market low in an attempt to get back to even.  The action is positive, for now, as it suggests a shift of sentiment that is allowing the extreme bearish bias to reset.  However, while the cyclical rally is conducive to positive markets, the activity hints of a mere alleviation of the extreme oversold condition that these sectors experienced at the lows in March, resetting them for another move lower as investors gauge the prolonged nature of this economic contraction.  When the cyclicals start to fade relative to the performance of the broader market, traders will likely start to fade the entire rebound rally from the past couple of weeks.

image

image

On the economic front, a report on US petroleum inventories was released during Wednesday’s session.  The Energy Information Administration reported that oil inventories increased by a whopping 15.2 million barrels last week, an injection that was even higher than the prior week’s 13.8 million barrel build. Gasoline stockpiles, similarly, showed a pronounced rise, increasing by 10.5 million barrels, up from the 7.5 million barrel injection reported in the week prior. The result saw the days of supply of oil rise by 2.1 to 32.2, while gasoline days of supply rose by 5.5 to 34.0. The average days of supply for each at this time of year is 23.8 and 25.2, respectively.  We sent out further insight and analysis to subscribers intraday.  Signup now and we’ll tell you what this all means ahead of the emergency G20 energy ministers meeting this Friday.

Weekly U.S. Days of Supply of Crude Oil excluding SPR  (Number of Days) Seasonal Chart

Sentiment on Wednesday, as gauged by the put-call ratio, ended neutral at 1.00

image

 

 

Seasonal charts of companies reporting earnings today:

Shaw Communications Inc. Seasonal Chart WD-40 Company Seasonal Chart Simulations Plus, Inc. Seasonal Chart Conn's, Inc. Seasonal Chart

 

 

S&P 500 Index

image

image

 

 

TSE Composite

image

image

 

Sponsored By...
Seasonal Advantage Portfolio by CastleMoore

Comments are closed.