Equity Clock

Stock Market Outlook for January 12, 2022

The case for Gold and the fundamental headwinds against it in 2022.

 

 

 

*** 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.

CVS Health Corp. (NYSE:CVS) Seasonal Chart

Pembina Pipeline Corp. (TSE:PPL.TO) Seasonal Chart

Marsh and Mclennan Co. (NYSE:MMC) Seasonal Chart

CCL Industries Inc. – Class B (TSE:CCL/B.TO) Seasonal Chart

Materion Corp. (NYSE:MTRN) Seasonal Chart

Digital Realty Trust, Inc. (NYSE:DLR) Seasonal Chart

TMX Group Inc. (TSE:X.TO) Seasonal Chart

Inter Parfums, Inc. (NASD:IPAR) Seasonal Chart

Ashford Hospitality Trust Inc. (NYSE:AHT) Seasonal Chart

Radiant Logistics Inc. (AMEX:RLGT) Seasonal Chart

iShares S&P/TSX Capped Consumer Staples Index ETF (TSE:XST.TO) Seasonal Chart

BMO Global Infrastructure Index ETF (TSE:ZGI.TO) Seasonal Chart

BMO Low Volatility Canadian Equity ETF (TSE:ZLB.TO) Seasonal Chart

iShares U.S. Energy ETF (NYSE:IYE) Seasonal Chart

 

 

The Markets

Stocks snapped back from recent losses as traders looked for opportunities that had become oversold in recent days.  The S&P 500 Index gained just over nine-tenths of one percent, closing around its 20-day moving average.  Rising trendline support can be pegged at 4650, while previous resistance at 4720 is the hurdle overhead.  Gradually, the market is becoming pinned between these two converging levels and a break will be realized.  While momentum indicators are still negatively diverging from price and we have expressed caution for the month of January, we have no real conviction to suggest that the break of this converging range will be higher or lower.  We do, however, want to keep some powder dry to take advantage of trading opportunities that may present themselves through the first half of the year, as we did with Software (IGV) yesterday.  These are merely trades and do not necessarily fit with our seasonal approach, but they can generate alpha around the periphery of our portfolio while we wait to become aggressive in the equity market again.

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

• The lack of new 52-week highs in the market
• The jump in the price of Gold
• The fundamental headwinds against Gold through 2022 and how you should gain exposure (stocks or commodity)
• Mid-Term Election year tendency for the price of the precious metal

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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.76. 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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