Equity Clock

Stock Market Outlook for August 31, 2021

The Dark Index just fell to the lowest level since February 23rd as institutional investors show a lack of excitement towards the market at these heights.

 

 

 

*** 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.

Expeditors Intl of Washington, Inc. (NASD:EXPD) Seasonal Chart

Kaman Corp. (NYSE:KAMN) Seasonal Chart

Insperity, Inc. (NYSE:NSP) Seasonal Chart

iShares China Index ETF (TSE:XCH.TO) Seasonal Chart

BMO US Dividend Hedged to CAD ETF (TSE:ZUD.TO) Seasonal Chart

Schwab Fundamental U.S. Broad Market Index ETF (AMEX:FNDB) Seasonal Chart

Vanguard Value ETF (NYSE:VTV) Seasonal Chart

 

 

The Markets

Stocks gained to start the trading week as portfolio managers window dress their books ahead of the end of the month.  The S&P 500 Index gained just over four-tenths of one percent, led by strength in the technology sector as portfolio managers continue to allocate money into this quarter’s winners.  The benchmark continues to grind around the mid-point to the approximately 200-point range that spans between 4400 and 4600.  Volumes remain light, raising concerns pertaining to the conviction of investors at these all-time peaks.  Seasonally, in the month of September as portfolio managers return to their desks and seek to allocate for the last quarter of the year, the big institutions are notorious for pushing back against some of the small guys that managed to take control of the tape during the slower summer period.  This is conducive to the seasonal rise in volatility in the last month of the quarter.  So while we can certainly pick our spots in this market, many of them identified as Accumulate candidates in our weekly chart books, we cannot, as of yet, signal that we are all clear to take on broad exposure to risk assets, particularly with this notoriously volatile month directly in front of us.  We break it all down in our monthly report that will be released to subscribers on Tuesday.

Soon to be released…

We are busy placing the final touches on our monthly report for September, providing all of the insight and guidance that is required for the month(s) ahead.  Subscribers can look for this report in their inbox mid-day on Tuesday.

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

• Treasury bond ETFs bouncing from levels of intermediate support
• Notable upgrades and downgrades in this week’s chart books: Find out what has joined our list of market segments to Accumulate
• What the ratio between Semiconductor and Software stocks is suggesting about how to allocate in the Technology sector
• Leisure/hospitality stocks
• The plunge in the Dark Index on Friday

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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

Subscribe now.

Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.77.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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