Equity Clock

Stock Market Outlook for August 13, 2021

As the period of strength for the transportation sector approaches, we look to the fundamental backdrop to determine if a position is warranted.

 

 

 

*** 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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ViaSat, Inc. (NASD:VSAT) Seasonal Chart

First Commonwlth Fncl Pa (NYSE:FCF) Seasonal Chart

Schweitzer Mauduit Intl (NYSE:SWM) Seasonal Chart

Amerco (NASD:UHAL) Seasonal Chart

TriCo Bancshares (NASD:TCBK) Seasonal Chart

First Community Bancshares Inc. (NASD:FCBC) Seasonal Chart

Deutsche X-trackers MSCI Emerging Markets Hedged Equity ETF (NYSE:DBEM) Seasonal Chart

Oppenheimer Large Cap Revenue ETF (NYSE:RWL) Seasonal Chart

Tanger Fctry Outlet Cntrs (NYSE:SKT) Seasonal Chart

Texas Capital Bancshares, Inc. (NASD:TCBI) Seasonal Chart

Beazer Homes USA, Inc. (NYSE:BZH) Seasonal Chart

STMicroelectronics NV (NYSE:STM) Seasonal Chart

Aurora Cannabis Inc. (NYSE:ACB) Seasonal Chart

 

 

The Markets

Stocks continued to grind higher on Thursday as the gyration between growth and value stocks resumes.  The S&P 500 Index added three-tenths of one percent, supported by strength in health care and technology following the tilt towards pro-cyclical segments of the market in recent days.  The benchmark continues to hover around the mid-point to its approximately 200-point trading range between 4350 and 4550.  Momentum indicators are starting to inch back higher following recent negative momentum divergences, but the action remains slight as portfolio managers let their buy programs do all the work.  With no catalysts to push stocks significantly higher nor to derail the path of higher-highs and higher-lows, the grind continues.  In the meantime, we continue to pick our spots in the areas that check the three prongs to our approach, many of the ideas have been presented in recent reports.

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

• The Biotechnology sector and the precision of the recent trend compared to the seasonal norm
• Jobless claims and the health of the labor market
• Natural gas: Looking at the fundamental backdrop ahead of the period of seasonal strength for the commodity
• Shipping activity and the period of seasonal strength for the transportation sector

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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.88.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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