Stock Market Outlook for May 11, 2022
Inventories of goods are rising at the fastest pace on record and it is poised to cap inflationary pressures through the summer.
*** 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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BCE, Inc. (TSE:BCE.TO) Seasonal Chart
CME Group Inc. (NASD:CME) Seasonal Chart
Amicus Therapeutics, Inc. (NASD:FOLD) Seasonal Chart
BMO Junior Gold Index ETF (TSE:ZJG.TO) Seasonal Chart
Novavax, Inc. (NASD:NVAX) Seasonal Chart
The Markets
Stocks closed generally mixed on Tuesday as traders showed difficulty shaking off Monday’s sharp losses. The S&P 500 Index recovered a mere quarter of one percent, charting a rather indecisive doji candlestick below the prior session’s high. Momentum indicators continue to show characteristics of a bearish trend below their middle lines and MACD has fallen to the lowest level since the height of the pandemic downturn in 2020. The benchmark continues to hold firmly below the neckline to a massive head-and-shoulders topping pattern, the downside projection of which points to 3780. As we quickly approach that target, we are eager to become re-involved in equities in a big way, but, for now, we watch and wait with our large cash/bond allocation.
Today, in our Market Outlook to subscribers, we discuss the following:
- Signs that the market is becoming stretched to the downside
- Wholesale Inventories
- Inflation expectations rolling over and what that means for the beaten down technology sector and the red-hot commodity trade
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Sentiment on Tuesday, as gauged by the put-call ratio, ended neutral at 1.00.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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