Equity Clock

Stock Market Outlook for January 14, 2022

Coincident indicators are pointing to strains in the economy as Omicron forces Americans into isolation.

 

 

 

*** 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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Coca Cola Co. (NYSE:KO) Seasonal Chart

O’Reilly Automotive, Inc. (NASD:ORLY) Seasonal Chart

Pioneer Natural Resources Co. (NYSE:PXD) Seasonal Chart

SCP Pool Corp. (NASD:POOL) Seasonal Chart

Allete Inc. (NYSE:ALE) Seasonal Chart

PetMed Express, Inc. (NASD:PETS) Seasonal Chart

Rex American Resources Corp. (NYSE:REX) Seasonal Chart

Keurig Dr Pepper Inc. (NASD:KDP) Seasonal Chart

iShares U.S. Consumer Services ETF (NYSE:IYC) Seasonal Chart

Consumer Staples Select Sector SPDR Fund (NYSE:XLP) Seasonal Chart

Williams Sonoma, Inc. (NYSE:WSM) Seasonal Chart

Amphenol Corp. (NYSE:APH) Seasonal Chart

Unilever PLC (NYSE:UL) Seasonal Chart

Carter Holdings Inc. (NYSE:CRI) Seasonal Chart

iShares Canadian Growth Index ETF (TSE:XCG.TO) Seasonal Chart

 

 

 

The Markets

Stocks sold off on Thursday as the weakness in the technology sector continued following a three-day reprieve.  The S&P 500 Index closed with a loss of 1.42%, turning lower from horizontal resistance around 4720 and breaking back below the 50-day moving average.  Momentum indicators continue to negatively diverge from price as broad buying demand at these heights remains absent.  The levels of interest on the downside are rising trendline support, now sitting just above 4650, and the rising 100-day moving average, which has supported each pullback in the market over the past few months.  Weakness below these hurdles would raise intermediate to long-term concerns for the market beyond the current short-term strains.  Seasonally, January tends to be a lacklustre month for equity performance beyond the conclusion of the Santa Claus rally period and the market is showing just that.  Our next opportunity to become more engaged in the broad equity market could appear closer to the end of this month, but we still have a couple of weeks to wade through as we digest the start of earnings season.

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

• Both the US Dollar Index and the All Country World ex US Index ETF are testing levels of significance
• Weekly Jobless Claims and the health of the labor market early in the new year
• Producer Price Index and waning inflation expectations

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Sentiment on Thursday, as gauged by the put-call ratio, ended close to neutral at 0.95.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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