Equity Clock

Stock Market Outlook for May 4, 2021

Our chart books suggest that the seasonal trade in the technology sector is under threat as buying demand in the market segment fades.

 

 

 

*** 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.

Royal Gold, Inc. (NASD:RGLD) Seasonal Chart

Triple-S Management Corp. (NYSE:GTS) Seasonal Chart

First Majestic Silver Corp. (NYSE:AG) Seasonal Chart

Clarke, Inc. (TSE:CKI.TO) Seasonal Chart

PRA Health Sciences, Inc. (NASD:PRAH) Seasonal Chart

BlackRock MuniHoldings Quality Fund II, Inc. (NYSE:MUE) Seasonal Chart

 

 

The Markets

Stocks closed fairly mixed in the first trading session of May as investors rotated towards the areas they feel are best positioned to outperform through the weaker time of year for stocks in the months ahead.  The S&P 500 Index gained just over a quarter of one percent, continuing to grind within a tight range around 4200.  The benchmark remains just below the upper limit to a rising intermediate trading range, which hovers approximately between 4025 and 4250.  Momentum indicators have shown similar sluggish activity, grinding below the overbought levels hit a couple of weeks ago.  MACD remains on a sell signal and the histogram of the indicator relative to its signal line is expanding negatively.  May is the first month of the weaker six months of the year for stocks, therefore expect some choppiness as we progress through this period, but this will likely just create opportunities to load up on favoured positions when they pullback to levels of support.

Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

• Currencies
• Cryptocurrencies
• Commodities
• Major Benchmarks
• Sub-sectors / Industries

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

• Notable changes in this week’s chart books
• REITs and how to play them
• Waning strength in the technology sector
• German DAX
• US Construction Spending and how to take advantage of the fundamental trends in this industry
• Home Building stocks

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Sentiment on Monday, 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

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