Equity Clock

Stock Market Outlook for October 26, 2021

Ahead of Amazon’s earnings report on Thursday, we are downgrading our view of the Broadline Retail industry given the sluggish performance realized in recent weeks.  Find out what other actions are prudent for your portfolio 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:

Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.

Boston Scientific Corp. (NYSE:BSX) Seasonal Chart

Astec Industries, Inc. (NASD:ASTE) Seasonal Chart

Axogen, Inc. (NASD:AXGN) Seasonal Chart

JD.com, Inc. (NASD:JD) Seasonal Chart

Amcor plc (NYSE:AMCR) Seasonal Chart

iShares U.S. Healthcare Providers ETF (NYSE:IHF) Seasonal Chart

iShares Russell 1000 ETF (NYSE:IWB) Seasonal Chart

Invesco S&P 500 Equal Weight Industrials ETF (NYSE:RGI) Seasonal Chart

 

 

The Markets

Stocks pushed higher on Monday as investors prepare for a slew of earnings in the week ahead.  The S&P 500 Index added around half of one percent, pushing further into record territory as consumer discretionary, energy, and materials stocks reach new heights.  At the high of the day, the large-cap benchmark came within points of hitting our projected upside target of 4575 that was implied following the breakout of the short-term head-and-shoulders pattern a couple of weeks ago.  The target closely aligns with previously broken trend channel support that had carried the benchmark through much of the year.  While the previous all-time high for the market at 4545 is now in a position of support, the more logical levels to look to in order to defend the rising tape should a pullback materialize are the 20 and 50-day moving averages, now at 4418 and 4447, respectively.  These variable hurdles continue to point higher, implying positive trends on short and intermediate timescales, conducive to the intermediate framework that our seasonal strategy encompasses.

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

• Strength in the consumer discretionary sector and the breakout of shares of Tesla (TSLA) – What the appropriate course of action is in the near-term
• The US Dollar
• Notable upgrades and downgrades in this week’s chart books: Find out what industries join our list of areas to Accumulate this week
• The seasonal trade in Health Care Providers

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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

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Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.72.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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