Equity Clock

Stock Market Outlook for December 20, 2021

Warning signs and signs of hope as we head into the notorious Santa Claus Rally period.

 

 

 

*** 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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Nordstrom, Inc. (NYSE:JWN) Seasonal Chart

iShares MSCI Emerging Markets ETF (NYSE:EEM) Seasonal Chart

Russel Metals, Inc. (TSE:RUS.TO) Seasonal Chart

Golden Star Resources Ltd. (TSE:GSC.TO) Seasonal Chart

Morguard Corp. (TSE:MRC.TO) Seasonal Chart

Kronos Worldwide Inc. (NYSE:KRO) Seasonal Chart

WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE:DGS) Seasonal Chart

WisdomTree Global ex-U.S. Quality Dividend Growth Fund (NYSE:DNL) Seasonal Chart

iShares MSCI Pacific ex Japan ETF (NYSE:EPP) Seasonal Chart

iShares MSCI Global Gold Miners ETF (NASD:RING) Seasonal Chart

Vanguard FTSE Emerging Markets ETF (NYSE:VWO) Seasonal Chart

 

 

The Markets

Stocks closed mixed on Friday as COVID concerns continue to weigh on market performance as we head into the notorious Santa Claus Rally period.  The S&P 500 Index closed lower by just over one percent, closing back below an important short-term variable hurdle at the 20-day moving average.  Once again, gap support between 4615 and 4635 is being tested, along with the rising 50-day moving average, keeping the rising intermediate-term trend intact.  A violation of either of these areas of support would start to imply intermediate risks beyond the short-term strains that are presently being realized.  Resistance remains well defined just above 4700.  Momentum indicators are showing hints of rolling over again, on the verge of confirming negative divergences versus price, an indication of waning buying demand.  The bulls have dug in their heels around levels of intermediate support, but they are holding on by a thread.

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

• Weekly look at the large-cap benchmark
• Two of the signals of investor sentiment continuing to highlight risk aversion
• Beaten down segments of the market finding support
• US Petroleum Status and the state of demand
• Driving mobility trends in the US amidst the spread of COVID
• The energy sector ETF (XLE)

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Sentiment on Friday, 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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