Equity Clock

Stock Market Outlook for April 8, 2021

The price of oil is showing signs of a short-term topping pattern, but is it worthwhile to bet on a downside move in the commodity?

 

 

 

*** 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.

McKesson Corp. (NYSE:MCK) Seasonal Chart

ABIOMED, Inc. (NASD:ABMD) Seasonal Chart

Intrepid Potash, Inc. (NYSE:IPI) Seasonal Chart

Stratasys, Inc. (NASD:SSYS) Seasonal Chart

Elmira Savings Bank, FSB (NASD:ESBK) Seasonal Chart

National Bank Holdings Corp. (NYSE:NBHC) Seasonal Chart

 

 

The Markets

Stocks closed mildly higher on Wednesday as investors ponder their next step now that the S&P 500 Index has surpassed the important psychological hurdle at 4,000.  The large-cap benchmark added just over one-tenth of one percent, starting to flag as it reaches towards the upper limit of its rising range around 4,150.  The Relative Strength Index (RSI) is back knocking on the door of overbought territory, which could lead to near-term exhaustion as we close in on the middle of April.  Volumes are once again declining as the next marginal buyer becomes difficult to entice at these market heights.  Still, with a favourable fundamental backdrop and technicals that show a trend of higher-highs and higher-lows, it would be inappropriate to suggest anything other than a bullish bias.  Support remains defined at the rising 50-day moving average.

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

• US petroleum inventories and what they have to say about the trajectory of the price of oil
• The energy sector
• March Vehicle Sales, how to play it, and what they say about the health of the consumer
• Canadian International Trade

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.80.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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