Equity Clock

Stock Market Outlook for August 22, 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:

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BMO International Dividend Hedged to CAD ETF (TSE:ZDH.TO) Seasonal Chart

Park Hotels & Resorts Inc. (NYSE:PK) Seasonal Chart

Deutsche X-trackers MSCI Germany Hedged Equity ETF (AMEX:DBGR) Seasonal Chart

Six Flags Entertainment Corp. (NYSE:SIX) Seasonal Chart

Citizens Financial Group Inc. (NYSE:CFG) Seasonal Chart

LiveRamp Holdings, Inc. (NYSE:RAMP) Seasonal Chart

Phillips 66 (NYSE:PSX) Seasonal Chart

Cenovus Energy Inc. (TSE:CVE.TO) Seasonal Chart

Cabot Corp. (NYSE:CBT) Seasonal Chart

Allegiant Travel Co. (NASD:ALGT) Seasonal Chart

WisdomTree Japan Hedged Equity Fund (NYSE:DXJ) Seasonal Chart

WisdomTree SmallCap Earnings Fund (NYSE:EES) Seasonal Chart

The Markets

Stocks pulled back on Friday as traders continue to digest the gains from the recent rally.  The S&P 500 Index slipped by 1.29%, pulling back from the declining 200-day moving average that was tested earlier in the week.  Momentum indicators continue to rollover with MACD seemingly poised to chart an equivalent sell signal that the Relative Strength Index (RSI) triggered a few days ago.  But, as mentioned in our last report, while sell signals are triggering, momentum indicators are no longer showing the characteristics of a bearish trend that dominated the first half of the year, an indication that the market has turned a corner.  Support can continue to be pegged at the 20 and 50-day moving averages at 4156 and 3966, respectively.  A check-back and bounce from the now rising 50-day moving average, thereby charting a higher intermediate low, is still viewed as the ideal in order to ramp up risk (stock) exposure in portfolios for our forecasted back half of the year rebound.  We will take things one move at a time, however.

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

• Weekly look at the large-cap benchmark and the change we are enacting in the Super Simple Seasonal Portfolio
• Gauges of risk sentiment failing at resistance
• The declining trend of sentiment and positioning
• Canada Retail Sales

Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for August 22

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Sentiment on Friday, as gauged by the put-call ratio, ended slightly bearish at 1.03

Seasonal charts of companies reporting earnings today:

S&P 500 Index

TSE Composite

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