Equity Clock

Stock Market Outlook for December 22, 2020

Forecast for the equity market in the year ahead and the variable to get in the way of it.

 

 

*** 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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Optical Cable Corp. (NASD:OCC) Seasonal Chart

Central Fund of Canada Limited (AMEX:CEF) Seasonal Chart

Suncor Energy, Inc. (TSE:SU.TO) Seasonal Chart

Ballard Power Systems, Inc. (TSE:BLDP.TO) Seasonal Chart

BHP Billiton Ltd. (NYSE:BHP) Seasonal Chart

Tupperware Brands Corp. (NYSE:TUP) Seasonal Chart

Pentair, Inc. (NYSE:PNR) Seasonal Chart

Fortuna Silver Mines Inc (TSE:FVI.TO) Seasonal Chart

Mag Silver Corp. (TSE:MAG.TO) Seasonal Chart

Take-Two Interactive Software, Inc. (NASD:TTWO) Seasonal Chart

Graphic Packaging Holding Co. (NYSE:GPK) Seasonal Chart

McEwen Mining Inc. (NYSE:MUX) Seasonal Chart

ProShares Ultra Silver (NYSE:AGQ) Seasonal Chart

VanEck Vectors Gaming ETF (NYSE:BJK) Seasonal Chart

Calamos Strategic Total Return Fund (NASD:CSQ) Seasonal Chart

Schwab Fundamental International Small Company Index ETF (AMEX:FNDC) Seasonal Chart

iShares Russell 1000 ETF (NYSE:IWB) Seasonal Chart

Direxion Daily Gold Miners Index Bull 3x Shares (NYSE:NUGT) Seasonal Chart

iShares MSCI USA Size Factor ETF (AMEX:SIZE) Seasonal Chart

Vanguard FTSE All-World ex-US Small-Cap ETF (NYSE:VSS) Seasonal Chart

iShares MSCI Kokusai ETF (NYSE:TOK) Seasonal Chart

 

 

The Markets

Stocks closed mixed as concerns regarding the spread of the coronavirus had investors pondering the renewed toll it would have on the broader global economy.  The S&P 500 Index dipped by just less than four-tenths of one percent, holding close to the 3700 level by the closing bell.  At the lows of the session, a test of short-term support at the 20-day moving average was realized and traders stepped in to take advantage of the weakness to add positions.  The fact that the market benchmark closed only mildly lower on the day, shaking off significant weakness, shows the strength that is typical of the market at this time of year.  Intermediate-term risks remain to the 50-day moving average, now hovering around 3550.  We continue to hold an upside target of 3800 by the start of the new year, but we fully realize that escalating coronavirus strains could derail the market from achieving this forecast by the start of the new year.  The Santa Claus Rally period that we are presently within warrants maintaining risk (stocks) within investment portfolios, for the time being.

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

• European stocks
• The seasonality of respiratory illnesses
• Forecast for the market through the year ahead

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Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

• Currencies
• Cryptocurrencies
• Commodities
• Major Benchmarks
• Sub-sectors / Industries

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Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.76.  The dark index, our gauge of institutional sentiment, closed Monday’s session at 44.9%, remaining around the 45% hurdle that indicates dark pool buying activity.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

TSE Composite

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