Equity Clock

Stock Market Outlook for August 19, 2021

The market is showing signs of instability, something that the price action in Copper and Oil are telegraphing nicely.

 

 

 

*** 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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International Game Tech (NYSE:IGT) Seasonal Chart

DiamondRock Hospitality Co. (NYSE:DRH) Seasonal Chart

Transportadora De Gas Sur (NYSE:TGS) Seasonal Chart

BGC Partners, Inc. (NASD:BGCP) Seasonal Chart

Western New England Bancorp, Inc. (NASD:WNEB) Seasonal Chart

Capital Sr Living Corp. (NYSE:CSU) Seasonal Chart

OrganiGram Holdings Inc. (NASD:OGI) Seasonal Chart

Ivanhoe Mines Ltd. (TSE:IVN.TO) Seasonal Chart

Invesco Canadian Preferred Share Index ETF (TSE:PPS.TO) Seasonal Chart

 

 

The Markets

Stocks drifted lower on Wednesday as the Fed minutes showed that the FOMC may be willing to tapper its monetary accommodation before the end of the year.  The S&P 500 Index slipped by over one percent, breaking below its rising 20-day moving average that was tested at the lows of Tuesday’s session.  Below this level of short-term support, intermediate support continues to be pegged at the rising 50-day moving average, now at 4345.  The benchmark has recently been gyrating around the mid-point to an approximately 200-point rising range that spans between 4350 and 4550.  Again, the lack of progress in the upper half of the rising span in recent months speaks to the waning buying demand for stocks at this juncture, but, without a catalyst to sell, a grind higher was able to play out.  MACD crossed below its signal line during the Wednesday session, triggering another sell signal with respect to this metric.  Seasonally, at this point in the calendar and the lack of upside momentum in the broader market, our desire to take on risk at this point remains low.

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

• The breakdown in the price of copper
• US petroleum inventories and the fundamental backdrop to the energy sector
• US mobility trends
• The breakdown in the price of oil
• US Housing Starts and the fundamental backdrop to the home construction industry
• The Home Construction ETF (ITB)
• Canadian Consumer Price Index (CPI) and what is influencing the aggregate trend
• The Canadian Dollar

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Sentiment on Wednesday, as gauged by the put-call ratio, ended slightly bullish at 0.91.

 

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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