Equity Clock

Stock Market Outlook for January 7, 2021

Typical end-of-year shenanigans caused the largest weekly decline in gasoline production since the pandemic began.

 

 

 

*** 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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PROG Holdings, Inc. (NYSE:PRG) Seasonal Chart

Computer Modelling Group Ltd. (TSE:CMG.TO) Seasonal Chart

Atco Ltd. (TSE:ACO/X.TO) Seasonal Chart

Metro, Inc. (TSE:MRU.TO) Seasonal Chart

McCormick & Co., Inc. (NYSE:MKC) Seasonal Chart

Alliant Energy Corp. (NYSE:LNT) Seasonal Chart

Aaron (NYSE:AAN) Seasonal Chart

Valmont Industries, Inc. (NYSE:VMI) Seasonal Chart

Discovery, Inc. (NASD:DISCK) Seasonal Chart

Skyline Corp. (NYSE:SKY) Seasonal Chart

Ecopetrol SA (NYSE:EC) Seasonal Chart

NXP Semiconductor N.V. (NASD:NXPI) Seasonal Chart

Workday, Inc. (NASD:WDAY) Seasonal Chart

SPDR S&P MIDCAP 400 ETF (NYSE:MDY) Seasonal Chart

Invesco FTSE RAFI Emerging Markets ETF (NYSE:PXH) Seasonal Chart

ProShares Ultra Semiconductors (NYSE:USD) Seasonal Chart

ProShares UltraPro QQQ (NASD:TQQQ) Seasonal Chart

 

 

The Markets

Stocks gained on Wednesday as investors embraced the democratic win in the Georgia runoff elections held on Tuesday.  The S&P 500 Index gained just shy of six-tenths of one percent, making progress clawing back the loss that was recorded at the start of the week.  The gain was less than half of the return realized at the high of the session, which saw the benchmark get to within mere points of our 3800 target that we have proposed for the benchmark by the start of the year.  The events in Washington caused investors to pull back on the early day euphoria, which saw cyclical sectors rally strongly amidst the Georgia election result.  The market continues to hold levels above its rising 20-day moving average with intermediate downside risks remaining towards the rising 50-day moving average around 3600.

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

• Seasonal tendencies for the equity market beyond the first week of the year and a look at the general status of the other two prongs to our approach
• Health of the credit market and how it may impact stocks
• Vehicle sales for December and how to play the trend
• US Petroleum status and our stance on the energy sector
• US Factory Orders

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.78.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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