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Stock Market Outlook for May 26, 2020


For the sixth week, the S&P 500 Index continues to grind within this massive range of supply between 2700 and 3000.

 

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.

Fossil Group, Inc. (NASD:FOSL) Seasonal Chart

Fossil Group, Inc. (NASD:FOSL) Seasonal Chart

Bitauto Holdings Ltd. (NYSE:BITA) Seasonal Chart

Bitauto Holdings Ltd. (NYSE:BITA) Seasonal Chart

Blackbaud Inc. (NASD:BLKB) Seasonal Chart

Blackbaud Inc. (NASD:BLKB) Seasonal Chart

Destination XL Group, Inc. (NASD:DXLG) Seasonal Chart

Destination XL Group, Inc. (NASD:DXLG) Seasonal Chart

Lakeland Financial Corp. (NASD:LKFN) Seasonal Chart

Lakeland Financial Corp. (NASD:LKFN) Seasonal Chart

Quidel Corp. (NASD:QDEL) Seasonal Chart

Quidel Corp. (NASD:QDEL) Seasonal Chart

China Mobile Ltd. (NYSE:CHL) Seasonal Chart

China Mobile Ltd. (NYSE:CHL) Seasonal Chart

Camden National Corp. (NASD:CAC) Seasonal Chart

Camden National Corp. (NASD:CAC) Seasonal Chart

SP Plus Corp. (NASD:SP) Seasonal Chart

SP Plus Corp. (NASD:SP) Seasonal Chart

Citizens, Inc. (NYSE:CIA) Seasonal Chart

Citizens, Inc. (NYSE:CIA) Seasonal Chart

iPath Bloomberg Lead Subindex Total Return ETN (NYSE:LD) Seasonal Chart

iPath Bloomberg Lead Subindex Total Return ETN (NYSE:LD) Seasonal Chart

Ionis Pharmaceuticals, Inc. (NASD:IONS) Seasonal Chart

Ionis Pharmaceuticals, Inc. (NASD:IONS) Seasonal Chart

Limoneira Co. (NASD:LMNR) Seasonal Chart

Limoneira Co. (NASD:LMNR) Seasonal Chart

Yelp Inc. (NYSE:YELP) Seasonal Chart

Yelp Inc. (NYSE:YELP) Seasonal Chart

iPath Bloomberg Cocoa Subindex Total Return ETN (NYSE:NIB) Seasonal Chart

iPath Bloomberg Cocoa Subindex Total Return ETN (NYSE:NIB) Seasonal Chart

Boyd Group Income Fund (TSE:BYD/UN.TO) Seasonal Chart

Boyd Group Income Fund (TSE:BYD/UN.TO) Seasonal Chart

 

Note: Monday is a holiday in the US and, as such, our next report will be released on Tuesday.

 

The Markets

Stocks closed mildly higher on Friday as investors held the tape fairly steady ahead of the Memorial Day long weekend.  The S&P 500 Index added just less than a quarter of one percent, remaining pinned below the widely scrutinized 200-day moving average, which is now just 44 points overhead.  Momentum indicators, which had been showing signs of rolling over prior to the past week, have essentially just stalled with MACD, RSI, and Stochastics moving sideways over the past few weeks.  With significant resistance overhead at the 200-day moving average and now a significant zone of support presented by Monday’s gap between 2860 and 2915, an breakout move, one way or the other should be expected at some point, which may be the best guide from here to determine the next intermediate-term move for stocks.  The grind in the equity benchmark in the range of 2700 through 3000 over the past month coincides with the massive zone of supply from the past couple of years in which the vast majority of volume traded.  It was inevitable that some struggle would be apparent in this span, but, all things considered, the market has digested this supply rather well.

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In our intraday report to subscribers on Friday, we look at the trends for revenue, net income, and free cash flow, as gauged by the constituents of the Dow Jones Industrial Average. The benchmark, which tracks 30 of the largest, publicly owned companies based in the United States, tends to be a good proxy of the economy overall.  Signup now and we can show you how each of these financial metrics are comparing to seasonal norms.

http://charts.equityclock.com/seasonal_charts/fundamental/WMT_Revenue.PNG

On the economic front, Statscan released its report of retail sales in Canada.  The headline print indicated that retail trade in Canada fell by 10.0% in March, which is actually better than the 11.0% decline that was forecasted by analysts.  The year-over-year change now sits at –8.4%, down significantly from the +3.0% rate reported previous.  Stripping out the seasonal adjustments, Canadian Retail Sales actually increased by 1.2% in March, which is significantly weaker than the 19.2% increase that is average for this time of year.  The year-to-date change is now hovering 4.3% below the seasonal average trend through the end of March, representing the weakest first quarter performance since 1998.  The impact of the health event and the resulting hoarding mentality that followed is obvious within the results.  Grocery, health/personal care, and beer/liquor stores are the only categories showing above average growth through the first three months of the year, while auto, furniture, gasoline, clothing, jewellery, and sporting good stores show significant negative divergences versus seasonal norms.  But within the more discretionary side of the economy, electronic and building material/garden stores are showing performance that remains inline with the seasonal average trends as the consumer continues to spend on technology and home improvement items.  Subscribers can login to the chart database to view all of the charts for this report at https://charts.equityclock.com/canada-retail-trade-sales

Retail trade Seasonal Chart

Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.82.

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Seasonal charts of companies reporting earnings today:

Bank of Nova Scotia (The) Seasonal Chart AutoZone, Inc. Seasonal Chart Keysight Technologies Inc. Seasonal Chart Heico Corporation Seasonal Chart Booz Allen Hamilton Holding Corporation Seasonal Chart Mobile TeleSystems OJSC Seasonal Chart Elbit Systems Ltd. Seasonal Chart ViaSat, Inc. Seasonal Chart Fanhua Inc. Seasonal Chart American Woodmark Corporation Seasonal Chart Magic Software Enterprises Ltd. Seasonal Chart China Yuchai International Limited Seasonal Chart Hibbett Sports, Inc. Seasonal Chart Ooma, Inc. Seasonal Chart Net 1 UEPS Technologies, Inc. Seasonal Chart CBL & Associates Properties, Inc. Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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