Equity Clock

Stock Market Outlook for December 16, 2020

We just received our technical cue for the next big seasonal rotation.

 

 

 

*** 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.

Summit State Bank (NASD:SSBI) Seasonal Chart

Royal Bank of Canada (TSE:RY.TO) Seasonal Chart

New Gold Inc. (TSE:NGD.TO) Seasonal Chart

China Gold International Resources Corp. Ltd. (TSE:CGG.TO) Seasonal Chart

Lithium Americas Corp. (TSE:LAC.TO) Seasonal Chart

Honda Motor Co. Ltd. (NYSE:HMC) Seasonal Chart

Cenovus Energy Inc. (NYSE:CVE) Seasonal Chart

MAG Silver Corp. (AMEX:MAG) Seasonal Chart

Blue Bird Corp. (NASD:BLBD) Seasonal Chart

BMO S&P-TSX Equal Weight Global Gold Index ETF (TSE:ZGD.TO) Seasonal Chart

BMO Junior Oil Index ETF (TSE:ZJO.TO) Seasonal Chart

Aberdeen Total Dynamic Dividend Fund (NYSE:AOD) Seasonal Chart

Direxion Daily Brazil Bull 3x Shares (AMEX:BRZU) Seasonal Chart

iShares MSCI ACWI Low Carbon Target ETF (AMEX:CRBN) Seasonal Chart

WisdomTree Emerging Markets QualityDividend Growth Fund (NASD:DGRE) Seasonal Chart

iShares Edge MSCI Minimum Volatility Emerging Markets ETF (AMEX:EEMV) Seasonal Chart

VanEck Vectors Egypt Index ETF (NYSE:EGPT) Seasonal Chart

First Trust Brazil AlphaDEX Fund (NASD:FBZ) Seasonal Chart

iShares Currency Hedged MSCI Emerging Markets ETF (AMEX:HEEM) Seasonal Chart

Direxion Daily Junior Gold Miners Index Bull 3x Shares (AMEX:JNUG) Seasonal Chart

ROBO Global Robotics and Automation Index ETF (AMEX:ROBO) Seasonal Chart

iShares MSCI Global Silver Miners ETF (AMEX:SLVP) Seasonal Chart

Global X Social Media Index ETF (NASD:SOCL) Seasonal Chart

SPDR Solactive United Kingdom ETF (AMEX:ZGBR) Seasonal Chart

 

 

The Markets

Stocks gained in the Tuesday session as investors monitored stimulus talks amongst lawmakers in the US.  The S&P 500 Index jumped by 1.29%, bouncing from its rising 20-day moving average.  The short-term hurdle now sits at 3642, proving support to the short-term rising trend.  Intermediate-term support can be picked out at the rising 50-day moving average at 3529.  The breakout of the previous 300-point between 3200 and 3500 calculates upside potential towards 3800, now 2.8% above present levels.

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

• Hourly look at the S&P 500 Index
• US Industrial Production
• The standout in November’s report on Industrial Production and the start of the next major rotation in the seasonal model
• The decline in the US Dollar and when the next turning point is likely to be realized
• Empire Manufacturing Survey
• Canada Manufacturing Sales and what is driving activity
• The surge in forestry stocks since added to our seasonal model

Subscribe now and we’ll send you this outlook.

On the economic front, a report on industrial production in the US was released before Tuesday’s opening bell.  The headline print of November’s report indicates that activity increased by 0.4% last month, which was slightly stronger than the consensus analyst estimate that called for a gain of 0.3%.  The manufacturing component reported an increase of 0.8%, which was double the forecasted increase of 0.4%.  Stripping out the seasonal adjustments, industrial production in the US actually declined by 0.3% in November, which is stronger than the 0.7% decline that is average for the month.  The year-to-date change is now down by 5.6%, which is still firmly below the 1.0% increase that is average by this point in the year.  The year-to-date change remains the weakest since 2008, just as the economy was falling into a recession.  We sent out further insight to subscribers intraday, highlighting what the current trends are telling us.  Subscribe now.

Note to subscribers: Upon sending out our intraday report on US Industrial Production, we received a large number of bounce-backs from Gmail addresses around the time of the reported service disruption at Google.  If you did not receive this report, it is available for download, once logged in, at https://charts.equityclock.com/featured/us-industrial-production-november-2020

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.91.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...