Equity Clock

Stock Market Outlook for September 15, 2021

Bond prices gain following a weaker than expected read of inflation.  Find out what seasonal tendencies have to say about when this rising trend in the bond market will come to an end in today’s report.

 

 

 

*** 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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Southwest Gas Corp. (NYSE:SWX) Seasonal Chart

China Biologic Products (NASD:CBPO) Seasonal Chart

CT Real Estate Investment Trust (TSE:CRT/UN.TO) Seasonal Chart

First Trust Value Line Dividend Index Fund (NYSE:FVD) Seasonal Chart

Invesco S&P SmallCap Utilities ETF (NASD:PSCU) Seasonal Chart

 

 

The Markets

Stocks slipped in the Tuesday session as the resiliency of the bulls is once again tested.  The S&P 500 Index fell by just less than six-tenths of one percent, reaching towards intermediate support at the rising 50-day moving average.  The lower limit of the rising 200-point trend channel around 4450 is being pressured.  The benchmark is currently at a make or break point where the bulls either have to defend the 50-day moving average to keep the intermediate-term rising trend intact or let it go, which would likely lead to the first major pullback of the year.  The negative divergence with respect to MACD has indicated that momentum in the market has been waning for months, which can often be precursor to a shift in the trajectory of the market.  MACD is presently at the lowest level since June, still remaining above its middle line, however, that defines characteristics of a bullish trend.

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

• US Consumer Price Index (CPI): What is driving inflationary pressures in the economy and the areas of demand that present opportunities for our portfolio
• One of the first tangible signs that the latest wave of COVID is altering activity
• Bond prices: Is a position in the bond market warranted and when does the period of seasonal strength for the asset class end?
• Canadian Manufacturing Sales and the underlying theme that presents our opportunity for investment this fall

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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.90.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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