Equity Clock

Stock Market Outlook for February 8, 2021

The 10-year treasury yield has broken above a bottoming pattern, which calculates an upside target towards 1.5%.

 

 

 

*** 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.

Broadcom Inc. (NASD:AVGO) Seasonal Chart

DuPont de Nemours, Inc. (NYSE:DD) Seasonal Chart

McDonalds Corp. (NYSE:MCD) Seasonal Chart

Perrigo Co. (NYSE:PRGO) Seasonal Chart

Clean Harbors, Inc. (NYSE:CLH) Seasonal Chart

Clean Energy Fuels Corp. (NASD:CLNE) Seasonal Chart

Surmodics, Inc. (NASD:SRDX) Seasonal Chart

ARK Innovation ETF (AMEX:ARKK) Seasonal Chart

Invesco S&P SmallCap Consumer Staples ETF (NASD:PSCC) Seasonal Chart

General Mills Inc. (NYSE:GIS) Seasonal Chart

Eagle Pharmaceuticals, Inc. (NASD:EGRX) Seasonal Chart

iShares MSCI All Country Asia ex Japan ETF (NASD:AAXJ) Seasonal Chart

iShares MSCI France ETF (NYSE:EWQ) Seasonal Chart

iShares MSCI Eurozone ETF (NYSE:EZU) Seasonal Chart

 

 

The Markets

Stocks ticked higher on Friday as investors reacted to a non-farm payroll report for January that was essentially inline with expectations.  The Bureau of Labor Statistics indicates that 49,000 payrolls were added last month, which was inline with the consensus analyst estimate that called for a rise of 50,000.  The unemployment rate ticked lower to 6.3% from 6.7% previous, continuing to be representative of levels that are typical coming out of an economic recession.  Average hourly earnings, meanwhile, increased by 0.2%, which was marginally weaker stronger than the 0.3% increase that was forecast.  Stripping out the seasonal adjustments, payrolls actually declined by 2.773 million, or 1.9%, in January, which is marginally stronger than the 2.1% decline that is the norm for the first month of the year.  The result follows a 6.0% decline in employment last year, representing the weakest calendar-year performance since 1945, amidst the end of the Second World War.  We sent out further insight to subscribers intraday, including what the trends are that are confirming our investment bias.  Subscribe now to download this report.

The S&P 500 Index closed Friday’s session with a gain of 0.39%, ending at a fresh record high.  While at risk of sounding like a broken record, support remains intact at the rising 50-day moving average and previous short-term support at the 20-day moving average has been retaken in the past week.  Momentum indicators continue to show characteristics of a bullish trend. 

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

• The limits of the large-cap index on a weekly look
• Treasury Yields
• The sharp decline in employment in Canada
• The common theme between Canadian and US employment reports
• Canadian International Merchandise Trade

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

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

Sponsored By...