Equity Clock

Stock Market Outlook for May 27, 2021

Buy Energy, Sell Financials.

 

 

 

*** 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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Merck & Co., Inc. (NYSE:MRK) Seasonal Chart

Richelieu Hardware Ltd. (TSE:RCH.TO) Seasonal Chart

American Water Works Co. Inc. (NYSE:AWK) Seasonal Chart

Resmed, Inc. (NYSE:RMD) Seasonal Chart

Dundee Precious Metals, Inc. (TSE:DPM.TO) Seasonal Chart

iShares Russell Top 200 ETF (NYSE:IWL) Seasonal Chart

Aberdeen Standard Physical Swiss Gold Shares ETF (NYSE:SGOL) Seasonal Chart

 

 

The Markets

Stocks closed mildly higher on Wednesday, fuelled by industries that will benefit from the reopening of the economy as the average daily case count of new COVID cases across the US falls below 25,000.  The S&P 500 Index added just less than two-tenths of one percent, led by strength in consumer discretionary, energy, and communication services.  The benchmark continues to hold above its 20-day moving average, a level that the benchmark moved above at the start of this week.  Momentum indicators have shown indications of turning a corner with MACD converging on its signal line in what could be a imminent buy signal.  Technical indicators continue to show characteristics of a bullish trend.  The limits of the intermediate path remain defined by support around 4100 and resistance around 4300.

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

• Reopening plays showing the start of a new upleg; How to play it
• US Petroleum Inventories and the trend that is developing that posses upside risks to our Oil price target
• A technical view of the price of Oil and the stocks of the producers; Our allocation in the sector
• Loan activity and the deterioration in our fundamental view of the financial sector

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.76.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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