Equity Clock

Stock Market Outlook for January 12, 2021

Breadth in this market remains strong.

 

 

 

*** 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.

Pembina Pipeline Corp. (TSE:PPL.TO) Seasonal Chart

Marsh and Mclennan Co. (NYSE:MMC) Seasonal Chart

Range Resources Corp. (NYSE:RRC) Seasonal Chart

CCL Industries Inc. – Class B (TSE:CCL/B.TO) Seasonal Chart

EOG Resources, Inc. (NYSE:EOG) Seasonal Chart

Imperial Oil Ltd. (TSE:IMO.TO) Seasonal Chart

Crescent Point Energy Corp. (TSE:CPG.TO) Seasonal Chart

Materion Corp. (NYSE:MTRN) Seasonal Chart

Digital Realty Trust, Inc. (NYSE:DLR) Seasonal Chart

Realty Income Corp. (NYSE:O) Seasonal Chart

Cimarex Energy Co. (NYSE:XEC) Seasonal Chart

Freehold Royalties Ltd. (TSE:FRU.TO) Seasonal Chart

TMX Group Inc. (TSE:X.TO) Seasonal Chart

Bank of Hawaii Corp. (NYSE:BOH) Seasonal Chart

Idex Corp. (NYSE:IEX) Seasonal Chart

Ashford Hospitality Trust Inc. (NYSE:AHT) Seasonal Chart

BMO Global Infrastructure Index ETF (TSE:ZGI.TO) Seasonal Chart

BMO Low Volatility Canadian Equity ETF (TSE:ZLB.TO) Seasonal Chart

iShares Edge MSCI Minimum Volatility Global ETF (AMEX:ACWV) Seasonal Chart

iShares S&P GSCI Commodity-Indexed Trust (NYSE:GSG) Seasonal Chart

Vanguard Small-Cap Value ETF (NYSE:VBR) Seasonal Chart

 

 

The Markets

Stocks weakened to start the week as investors digest the gains from the Santa Claus rally period that peaked at the end of last week.  The S&P 500 Index dropped by two-thirds of one percent, dragged lower by large-cap technology as the market shows concern for greater regulation as restrictions on Donald Trump’s social media presence and business dealings grow.  The Technology SPDR ETF (XLK) shed just over eight-tenths of one percent.  Relative performance of the largest sector of the market has notably stalled over the past four months as market participants gravitate towards areas of perceived value.  For the ETF, the rising 20-day moving average continues to underline the lows from the past couple of months, keeping the short-term rising trend intact, however, investors are no longer demanding this former market darling, as indicated by the performance that has been on par with the market since September.  Seasonally, beyond the first week of the new year, the relative performance of the sector typically fades, eventually finding a low in the middle of April.

The S&P 500 index closed just a hair below our forecasted target for the start of the year of 3800, charting a rather indecisive candlestick.  The large-cap benchmark remains supported by the rising 20-day moving average in the short-term, while intermediate downside risks remain to the rising 50-day moving average, now at 3629.  As highlighted in a previous report, now that our target of 3800 has been hit, we see no reason to adjust that hurdle in the near-term.  Momentum indicators are still showing characteristics of a bullish trend and stocks could continue to move higher, but the risk/reward is skewed enough to suggest that adding new exposure to domestic equities at this juncture in inappropriate.  Seasonally, the period between now and the end of February tends to see softer equity performance and an uptick in volatility.  We certainly saw some hints of that on Monday.

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

Subscribe now.

 

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

• Institutional Investor Sentiment
• Market Breadth

Subscribe now and we’ll send this outlook to you.

Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.79

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...