Equity Clock

Stock Market Outlook for July 13, 2020

Employment in Canada increased by 1.145 million, or 6.9%, in June, representing the strongest monthly increase on record.

 

 

 

*** 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.

Horizon Bancorp Inc. (NASD:HBNC) Seasonal Chart

Clorox Co. (NYSE:CLX) Seasonal Chart

Exchange Income Corp. (TSE:EIF.TO) Seasonal Chart

iShares MSCI All Peru Capped ETF (NYSE:EPU) Seasonal Chart

SPDR S&P 500 Buyback ETF (AMEX:SPYB) Seasonal Chart

 

 

The Markets

Stocks gained to closed the final trading day of the week as investors start to position for the onslaught of earnings reports ahead.  The S&P 500 Index gained 1.05%, remaining supported by the benchmark’s 20-day moving average.  Momentum indicators remain on a buy signal following the bullish MACD crossover charted mid-week.  Momentum indicators continue to show characteristics of a bullish trend.

On the economic front, Statscan released employment figures for the month of June.  The headline print of the Labour Force Survey in Canada indicates that employment increased by 953,000 last month, which is almost double the consensus estimate that called for a rise of 500,000. The unemployment rate ticked lower from 13.7% in May to 12.3% in June, which is better than the 13.0% rate expected by analysts. Stripping out the seasonal adjustments, which are irrelevant in this environment, employment actually increased by 1.145 million, or 6.9%, in June, representing the strongest monthly increase on record. The average change for the month is an increase of 1.2%. Year-to-date, employment is down by 6.9%, a drawdown not matched by any time in at least the past four decades of data that we have on record; never before has employment declined through the first half of the year. The average change through the first six months of the year is an increase of 3.3%.  We sent out further insight to subscribers intraday.  Subscribe now.

Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.83.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...