Equity Clock

Stock Market Outlook for April 21, 2021

Bond prices finding support at last week’s open gap as the risk aversion in the market continues.

 

 

 

*** 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.

Argonaut Gold Ltd. (TSE:AR.TO) Seasonal Chart

Service Corp. (NYSE:SCI) Seasonal Chart

BioLife Solutions Inc. (NASD:BLFS) Seasonal Chart

ADF Group, Inc. (TSE:DRX.TO) Seasonal Chart

Alico, Inc. (NASD:ALCO) Seasonal Chart

IRSA Propiedades Comerciales SA (NASD:IRCP) Seasonal Chart

Northern Technologies Intl Corp. (NASD:NTIC) Seasonal Chart

Transmation, Inc. (NASD:TRNS) Seasonal Chart

Evoke Pharma, Inc. (NASD:EVOK) Seasonal Chart

Babson Capital Corporate Investors (NYSE:MCI) Seasonal Chart

 

 

The Markets

Stocks dropped on Tuesday as investors continue to express their concerns pertaining to the rise in COVID cases globally.  The S&P 500 Index shed seven-tenths of one percent, representing the largest one day decline since March 23rd.  The rejection from levels around rising trend channel resistance remains apparent as a drift back towards levels of support around rising 20 and 50-day moving averages seems to be underway.  The Relative Strength Index triggered a sell signal on Monday with its cross out of overbought territory at 70, while MACD continues to converge on its signal line, threatening a sell signal of its own.  So far, this gyration lower all appears within the context of an intermediate-term trend of higher-highs and higher-lows, therefore, the argument for a longer-term path of gains remains intact, however, as our subscribers have been warned last week, reason for near-term caution remains based on the perceived threat to the fundamental prong to our approach.

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

• Tracking the spread of the virus and what the current trajectory has to say about the stance that remains appropriate in investment portfolios
• Continued evidence of risk aversion
• Bond prices bouncing from support at last week’s gap and the seasonal tendencies for the asset class
• Shipping activity in the US and what that means for the stocks of transportation companies
• Business inventories

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Sentiment on Tuesday, 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

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