Equity Clock

Stock Market Outlook for December 21, 2020

The start of the Santa Claus Rally period brings a large number of stocks entering their period of seasonal strength.

 

 

 

*** 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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First Trust BICK Index Fund (NASD:BICK) Seasonal Chart

Nordstrom, Inc. (NYSE:JWN) Seasonal Chart

iShares MSCI Emerging Markets Indx (NYSE:EEM) Seasonal Chart

Silver Bear Resources Inc. (TSE:SBR.TO) Seasonal Chart

ProShares Ultra MSCI Emerging Markets (NYSE:EET) Seasonal Chart

ProShares Ultra MSCI Brazil Capped (NYSE:UBR) Seasonal Chart

Energy Transfer LP (NYSE:ET) Seasonal Chart

Invesco China Technology ETF (NYSE:CQQQ) Seasonal Chart

WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE:DGS) Seasonal Chart

ProShares Ultra Oil And Gas (NYSE:DIG) Seasonal Chart

iShares MSCI Austria Capped ETF (NYSE:EWO) Seasonal Chart

iShares International Select Dividend ETF (NYSE:IDV) Seasonal Chart

Invesco S&P 500 Equal Weight Consumer Discretionary ETF (NYSE:RCD) Seasonal Chart

Vanguard FTSE Emerging Markets ETF (NYSE:VWO) Seasonal Chart

iShares MSCI Turkey ETF (NASD:TUR) Seasonal Chart

Union Pacific Corp. (NYSE:UNP) Seasonal Chart

Sunoco, Inc. (NYSE:SUN) Seasonal Chart

Kinder Morgan Inc. (NYSE:KMI) Seasonal Chart

Jabil, Inc. (NYSE:JBL) Seasonal Chart

Barclays Plc (NYSE:BCS) Seasonal Chart

iShares MSCI Indonesia ETF (NYSE:EIDO) Seasonal Chart

iShares MSCI South Korea Capped ETF (NYSE:EWY) Seasonal Chart

Guggenheim Credit Allocation Fund (NYSE:GGM) Seasonal Chart

VanEck Vectors Indonesia Index ETF (NYSE:IDX) Seasonal Chart

SPDR S&P 1000 ETF (AMEX:SPMD) Seasonal Chart

VanEck Vectors Vietnam ETF (NYSE:VNM) Seasonal Chart

Transcontinental Inc. (TSE:TCL/A.TO) Seasonal Chart

Sony Corp. (NYSE:SNE) Seasonal Chart

iShares MSCI Pacific ex Japan ETF (NYSE:EPP) Seasonal Chart

SPDR S&P International Small Cap ETF (NYSE:GWX) Seasonal Chart

 

 

The Markets

Stocks closed lower on Friday as portfolio managers rebalanced their books amidst a massive benchmark reconstitution with Tesla joining the S&P 500 Index.  The large-cap benchmark slipped by just over a third of one percent, still managing to hold onto the psychologically important 3700 level by the closing bell.  Short-term support remains apparent at the rising 20-day moving average, now hovering at 3661.  The upside target remains to 3800, which is the calculated upside move based on the breakout from the 300-point span between 3200 and 3500.

For the week, the large-cap benchmark was higher by 1.25%, maintaining an upward tilt that originated from November’s breakout of the 300-point consolidation range.  Momentum indicators are showing slight signs of stalling with the MACD histogram remaining stagnant over the past few weeks.  The benchmark remains on a weekly MACD buy signal that was triggered at the start of November.

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

• Canadian Retail Sales
• The Santa Claus Rally for the S&P 500 Index, Nasdaq Composite, and TSX Composite and the stocks/ETFs that start their period of seasonal strength during this seasonally strong time of year
• The US Dollar

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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.75.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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