Equity Clock

Stock Market Outlook for March 4, 2021

Technology stocks continue to emphasize why this is the weakest time of the year for the sector.

 

 

 

*** 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.

Savaria Corp. (TSE:SIS.TO) Seasonal Chart

Fanhua Inc. (NASD:FANH) Seasonal Chart

Air Transport Services Group Inc. (NASD:ATSG) Seasonal Chart

ATRION Corp. (NASD:ATRI) Seasonal Chart

Zendesk, Inc. (NYSE:ZEN) Seasonal Chart

BMO Long Federal Bond Index ETF (TSE:ZFL.TO) Seasonal Chart

SPDR Barclays Long Term Treasury ETF (AMEX:SPTL) Seasonal Chart

Vanguard Intermediate-Term Corporate Bond ETF (NASD:VCIT) Seasonal Chart

Vanguard Long-Term Government Bond ETF (NASD:VGLT) Seasonal Chart

 

 

The Markets

Stocks closed mixed as another jump in treasury yields had investors back selling growth sectors within portfolios.  The S&P 500 Index closed down by 1.31%, taking another swing at its rising 50-day moving average as selling pressures start to overtake buying demand.  Momentum indicators continue to point lower following the sell signals that were triggered in the past week.  As has been stated previously, levels down to previous horizontal resistance at 3550 remain fair game and the probability of this hurdle being tested has just increased with the selloff that has been realized over the past couple of sessions.  Momentum indicators have been negatively diverging from price for some time, indicative of the waning buying demand that is now acting as a burden to stocks.

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

• The potential for the broad equity market to diverge from seasonal norms through the month of March and the tendencies during a post election year under a new president
• Seasonal weakness in the Technology sector and when to take advantage of the weakness to buy
• US petroleum inventories and what they mean for the price of oil
• Energy sector ETFs
• US vehicle sales and auto industry stocks

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

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.83.

 

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...