Equity Clock

Stock Market Outlook for October 26, 2020

The year-to-date change in shipment volume has just advanced to the strongest pace through the first three quarters of the year since 2014.

 

 

 

*** 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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Boston Scientific Corp. (NYSE:BSX) Seasonal Chart

Comcast Corp. (NASD:CMCSA) Seasonal Chart

Dillards Inc (NYSE:DDS) Seasonal Chart

Omnicom Group, Inc. (NYSE:OMC) Seasonal Chart

Texas Instruments, Inc. (NASD:TXN) Seasonal Chart

WW Grainger, Inc. (NYSE:GWW) Seasonal Chart

Kaiser Aluminum Corp. (NASD:KALU) Seasonal Chart

Visteon Corp. (NASD:VC) Seasonal Chart

Blackrock, Inc. (NYSE:BLK) Seasonal Chart

IPG Photonics Corp. (NASD:IPGP) Seasonal Chart

Old Dominion Freight Line, Inc. (NASD:ODFL) Seasonal Chart

Magellan Health Services, Inc. (NASD:MGLN) Seasonal Chart

Canopy Growth Corp. (NYSE:CGC) Seasonal Chart

iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI) Seasonal Chart

iShares Morningstar Mid-Cap Growth ETF (NYSE:JKH) Seasonal Chart

iShares Edge MSCI USA Quality Factor ETF (AMEX:QUAL) Seasonal Chart

Align Technology, Inc. (NASD:ALGN) Seasonal Chart

Marvell Technology Group, Ltd. (NASD:MRVL) Seasonal Chart

iShares U.S. Healthcare Providers ETF (NYSE:IHF) Seasonal Chart

Direxion Daily Small Cap Bull 3x Shares (NYSE:TNA) Seasonal Chart

 

Upcoming Event:

On November 6th at 2:00pm ET, we will be presenting at the Money Show’s Virtual Expo on the topic of “Using Seasonality to Invest During a Pandemic.”  Registration is free via the following link:

 

 

The Markets

Stocks gained to close the final session of the trading week as the bulls and bears continue to push back on one another amidst ongoing stimulus talks.  The S&P 500 Index closed higher by around a third of one percent, continuing to hold support around its rising 20-day moving average.  MACD remains on a sell signal following Thursday’s bearish crossover; the lack of follow-through to this negative event is not very convincing of the merit of the signal, however.  Stcohastics and the Relative Strength Index (RSI) are attempting to curl back higher as investors peg the benchmark to the short and intermeidate moving averages below.  Resistance at the all-time high of 3588 is an overhanging concern.

For the week, the large-cap benchmark charted the first negative return in four weeks.  The candlesticks from the past two weeks show a lot of uncertainty, which would be expected given that the market remains hinged on the announcement of the next round of stimulus and with the presidential election just over a week away.  Support remains apparent at the 20-week moving average (equivalent to the 100-day), while resistance around 3500 stands out like a sore thumb.  MACD has, thus far, mitigated a bearish crossover that appeared imminent back in September.  Inevitably, the benchmark will either move below support at the 20-week average or through resistance around 3500 and long term investors can take their cue based on the direction of the break.

Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.84.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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