Equity Clock

Stock Market Outlook for March 5, 2021

Place these technology/momentum ETFs on your shopping list cause you’ll want to be a buyer when this washout is over.

 

 

 

*** 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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John Wiley & Sons, Inc. Cl A (NYSE:JW/A) Seasonal Chart

Mercury General Corp. (NYSE:MCY) Seasonal Chart

Avista Corp. (NYSE:AVA) Seasonal Chart

Horace Mann Educators Corp. (NYSE:HMN) Seasonal Chart

Vail Resorts, Inc. (NYSE:MTN) Seasonal Chart

Magna Intl, Inc. (TSE:MG.TO) Seasonal Chart

United States 12 Month Natural Gas Fund (NYSE:UNL) Seasonal Chart

Torchlight Energy Resources, Inc. (NASD:TRCH) Seasonal Chart

QTS Realty Trust, Inc. (NYSE:QTS) Seasonal Chart

Box, Inc. (NYSE:BOX) Seasonal Chart

Upland Software Inc. (NASD:UPLD) Seasonal Chart

 

 

The Markets

The bulls finally ceded control of the market to the bears on Thursday as the S&P 500 Index broke through intermediate support at its 50-day moving average.  The large-cap benchmark shed 1.34%, testing the lowest level since the end of January around 3700.  The action is consistent with what the technical indicators had been alluding to for some time, which is waning momentum and fading buying demand.  The dip in the broad market benchmark is all fair game back to previous horizontal resistance, now support, at 3550.  While downside risks are still present and reasonable, this is not the time to panic.  A pullback to the aforementioned level of support would provide a much needed washout of euphoric investor sentiment and reset/reinvigorate buying demand for the strength in equities that is notorious through the month of April.  We had been seeking weakness beyond the first week of the year and through the end of February, but, recently, we expanded our hesitation pertaining to ramping up risk until quarter-end rebalancing was fulfilled.  We always must be prepared to move with the punches, so that is what we are doing.  This is still a buy-the-dip market and there is no reason to become bearish of risk, at present.  The pullback is all part of the natural evolution of the trend of higher-highs and higher-lows.  Macro fundamental trends remain conducive for a bullish bias in stocks and seasonal tendencies remain positive into May.  We will finally have our chance to pick up some names on the discount and add risk through the days/weeks ahead.

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

• The technology/momentum ETFs that have corrected and should be placed on your shopping list
• A look at last week’s jobless claims and what they have to say about what to expect of the monthly non-farm payroll report
• Natural gas inventories and what the trends have to say about whether you should be a buyer or a seller of the commodity
• US Factory Orders

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Sentiment on Thursday, as gauged by the put-call ratio, ended slightly bullish at 0.90.  Should this ratio jump well over 1.00 in the days/weeks ahead, the all-clear to load up on risk should be signalled.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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