Stock Market Outlook for March 10, 2022
Despite another test of resistance on major benchmarks on Wednesday, the action on the session was highly encouraging, enough for us to put some of our cash hoard back to work.
*** 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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Natera, Inc. (NASD:NTRA) Seasonal Chart
Invesco DWA Energy Momentum ETF (NASD:PXI) Seasonal Chart
BRP Inc. (NASD:DOOO) Seasonal Chart
Gladstone Land Corp. (NASD:LAND) Seasonal Chart
Greif Bros. Corp. (NYSE:GEF) Seasonal Chart
Coca Cola Femsa, SAB (NYSE:KOF) Seasonal Chart
The Markets
Stocks rallied on Wednesday as a reprieve in the rise of energy commodity prices triggered a rotation away from some of this quarter’s high flyers and into this quarter’s laggards. The S&P 500 Index jumped by 2.57%, representing the strongest one-day return since June of 2020. The large-cap benchmark was once again seen knocking on the door of previously broken support, now resistance, at 4280, a level that it was unable to hold by the closing bell. Support has started to be derived around 4150. Momentum indicators are becoming pinned within the apex of a triangle pattern with the positive momentum divergences that have been charted since the lows of January holding on by a thread. The next moves in the market will likely be critical in defining whether the declining trend of momentum is still intact or whether the positive momentum divergences that have been observed are indicative of waning selling pressures and the precursor to a near-term shift of trend.
Today, in our Market Outlook to subscribers, we discuss the following:
- Massive mean reversion move in the market on Wednesday
- Evidence of a shift back towards risk-taking in the market
- NYSE New Highs and New Lows
- Weekly Petroleum Inventory Status
- Job Openings and Labor Turnover Survey
- Investor sentiment
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Sentiment on Wednesday, as gauged by the put-call ratio, ended overly bearish at 1.14.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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