Equity Clock

Stock Market Outlook for December 3, 2020

Bond prices falling towards the lower limit of declining trend channels as the rotation away from the defensive bet continues.

 

 

 

*** 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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Martinrea Intl Inc. (TSE:MRE.TO) Seasonal Chart

Spectral Medical, Inc. (TSE:EDT.TO) Seasonal Chart

TAG Oil Ltd. (TSE:TAO.TO) Seasonal Chart

ING Groep NV (NYSE:ISG) Seasonal Chart

Keg Royalties Income Fund (TSE:KEG/UN.TO) Seasonal Chart

Canfor Pulp Products Inc. (TSE:CFX.TO) Seasonal Chart

Cogeco, Inc. (TSE:CGO.TO) Seasonal Chart

Intercept Pharmaceuticals, Inc. (NASD:ICPT) Seasonal Chart

Northern Trust Corp. (NASD:NTRSP) Seasonal Chart

Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) (TSE:VBG.TO) Seasonal Chart

iShares Core MSCI EAFE IMI Index ETF (TSE:XEF.TO) Seasonal Chart

iShares Edge MSCI Min Vol USA Index ETF (TSE:XMU.TO) Seasonal Chart

BMO International Dividend ETF (TSE:ZDI.TO) Seasonal Chart

First Trust S&P REIT Index Fund (NYSE:FRI) Seasonal Chart

Nuveen Senior Income Fund (NYSE:NSL) Seasonal Chart

Global X MSCI Pakistan ETF (AMEX:PAK) Seasonal Chart

 

 

The Markets

Stocks closed marginally higher on Wednesday as investors continued to monitor developments pertaining to a coronavirus stimulus package that was floated by lawmakers on Tuesday.  The S&P 500 Index added just less than two-tenths of one percent, enough to achieve a new record closing high.  Support remains apparent at previous trading range resistance around 3550, as well as rising 20 and 50-day moving averages, now at 3581 and 3467, respectively.  MACD continues to flat-line, holding above its signal line and refusing to chart a bearish crossover that would be conducive to a signal to sell.  Upside target of the breakout from the previous treading range points to 3800, but the next few weeks could bring some variable results as the tax loss selling period influences market activity.  Further insight is provided in our monthly outlook for December, which is now available for download.  Subscribe now.

Today, in our Market Outlook for subscribers, we discuss the following:

• The declining trend of bond prices
• Sectors being influenced by the rise in rates and the rotation through year-end
• The price of oil
• Analysis and suggested weight that is warranted to the energy sector within investment portfolios
• How to position within the energy sector

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On schedule for the Wednesday session, the Energy Information Administration (EIA) released its tally of petroleum inventories for the week just past.  The EIA reports that oil inventories declined by 679,000 barrels last week, which is less than the 2.4 million barrel withdrawal that was expected by analysts.  Gasoline stockpiles, meanwhile, increased by 3.5 million barrels.  The result saw the days of supply of oil tick lower by four-tenths to 35.1, while gasoline days of supply ticked higher by seven-tenths to 28.2.  The average days of supply for each at this point in October is 22.8 and 23.6, respectively.  We sent out further insight to subscribers, including what allocation to the energy sector is appropriate at the present time.  Subscribe now.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.68.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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