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Stock Market Outlook for April 28, 2020


Core cyclical sectors are testing the upper limit of ascending triangle patterns, while growth/defensive sectors stall.

 

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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McKesson Corp. (NYSE:MCK) Seasonal Chart

McKesson Corp. (NYSE:MCK) Seasonal Chart

TripAdvisor, Inc. (NASD:TRIP) Seasonal Chart

TripAdvisor, Inc. (NASD:TRIP) Seasonal Chart

Coherus BioSciences Inc. (NASD:CHRS) Seasonal Chart

Coherus BioSciences Inc. (NASD:CHRS) Seasonal Chart

Proto Labs Inc. (NYSE:PRLB) Seasonal Chart

Proto Labs Inc. (NYSE:PRLB) Seasonal Chart

 

 

The Markets

Stocks rallied to start the week as investors monitor developments pertaining to the reopening of the economy.  The S&P 500 Index gained 1.47%, testing the previous short-term high charted a week and a half ago at 2880.  The large-cap benchmark has moved firmly above its 50-day moving average, on track to test the next major long-term hurdle at the 200-day moving average around 3000.  Daily momentum indicators, which had been showing signs of rolling over in recent days, ticked back higher as the bears start to capitulate on their negative bets.  The benchmark remains in this range of massive supply between 2700 and 3000, which continues to pose risks of the return of selling pressures should holders of equities from the past few years turn to sellers.

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Leading the performance during Monday’s session were the laggards from from the past month as investors rebalanced portfolios ahead of the end of April.  This is a tendency that we noted to subscribers in our market outlook on Friday, which suggested that those sectors that have been beaten down could start to outperform the market into the end of the period.  For this reason, we had rotated into beaten down areas in the material and industrial sectors ahead of this event, taking down exposure to technology in the process.  The days ahead will be critical to the technology sector with a number of titans in the industry on deck to report earnings.  Not surprisingly, they were all negative on the day, sitting out of the day’s rally.  Shares of Alphabet, which reports on Tuesday, shed 0.45%, pausing at its 200-day moving average.  Shares of Facebook, which reports on Wednesday, were lower by 1.35%, also pausing at its 200-day moving average.  Microsoft, Apple, and Amazon, which report on Wednesday and Thursday, saw flat to negative returns on the day, each now back above major moving averages.  These stocks represent the largest continents within many market benchmarks and they have supported much of the strength in broad market gauges since the March low.  The reaction of investors to earnings from these titans of industry will be pivotal for the next move for the broad market as we head into the new month. 

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Sentiment on Monday, as gauged by the put-call ratio, ended bearish at 1.05.

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Upcoming Presentation

The Money Show will be holding a Canadian Webinar series on May 7th, containing a lineup of well-known Canadian talent…and we’ll be there too.  The topic of our presentation is “Using Seasonality to Invest in an Abnormal Economic Environment.”  Attendance is free.  Click the banner below to reserve your spot now.

 

 

 

 

 

Seasonal charts of companies reporting earnings today:

Alphabet Inc. Seasonal Chart Alphabet Inc. Seasonal Chart Merck & Company, Inc. Seasonal Chart Pfizer, Inc. Seasonal Chart Novartis AG Seasonal Chart Pepsico, Inc. Seasonal Chart Starbucks Corporation Seasonal Chart United Parcel Service, Inc. Seasonal Chart 3M Company Seasonal Chart BP p.l.c. Seasonal Chart Mondelez International, Inc. Seasonal Chart S&P Global Inc. Seasonal Chart Advanced Micro Devices, Inc. Seasonal Chart Caterpillar, Inc. Seasonal Chart Ecolab Inc. Seasonal Chart Centene Corporation Seasonal Chart VALE S.A. Seasonal Chart ABB Ltd Seasonal Chart UBS AG Seasonal Chart Banco Santander Brasil SA Seasonal Chart Roper Technologies, Inc. Seasonal Chart DexCom, Inc. Seasonal Chart TAL Education Group Seasonal Chart MSCI Inc Seasonal Chart IQVIA Holdings, Inc. Seasonal Chart Sirius XM Holdings Inc. Seasonal Chart T. Rowe Price Group, Inc. Seasonal Chart TE Connectivity Ltd. Seasonal Chart Cerner Corporation Seasonal Chart Cummins Inc. Seasonal Chart CoStar Group, Inc. Seasonal Chart Rockwell Automation, Inc. Seasonal Chart DTE Energy Company Seasonal Chart Ford Motor Company Seasonal Chart Akamai Technologies, Inc. Seasonal Chart Southwest Airlines Company Seasonal Chart Corning Incorporated Seasonal Chart D.R. Horton, Inc. Seasonal Chart Maxim Integrated Products, Inc. Seasonal Chart Avangrid, Inc. Seasonal Chart Boston Properties, Inc. Seasonal Chart TransUnion Seasonal Chart Paycom Software, Inc. Seasonal Chart ONEOK, Inc. Seasonal Chart Waters Corporation Seasonal Chart Yandex N.V. Seasonal Chart Nucor Corporation Seasonal Chart Omnicom Group Inc. Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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