Stock Market Outlook for October 24, 2022
The ratio between the High yield and Investment Grade Bond ETFs has broken above multi-year resistance as credit conditions improve compared to the strains realized at the end of the second quarter.
*** 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.
Vanguard Materials ETF (NYSE:VAW) Seasonal Chart
Burlington Stores, Inc. (NYSE:BURL) Seasonal Chart
Voya Financial, Inc. (NYSE:VOYA) Seasonal Chart
Moelis & Co. (NYSE:MC) Seasonal Chart
Cyber-Ark Software Ltd. (NASD:CYBR) Seasonal Chart
Templeton Emerging Markets Fund, Inc. (NYSE:EMF) Seasonal Chart
iShares Russell 2000 Growth ETF (NYSE:IWO) Seasonal Chart
SPDR S&P 600 Small Cap Growth ETF (NYSE:SLYG) Seasonal Chart
SPDR S&P Aerospace & Defense ETF (NYSE:XAR) Seasonal Chart
SPDR S&P Semiconductor ETF (NYSE:XSD) Seasonal Chart
Eaton Corp. (NYSE:ETN) Seasonal Chart
Fiserv, Inc. (NASD:FISV) Seasonal Chart
Johnson Controls Intl plc (NYSE:JCI) Seasonal Chart
Knight-Swift Transportation Holdings Inc. (NYSE:KNX) Seasonal Chart
Bristol Myers Squibb Co. (NYSE:BMY) Seasonal Chart
SPDR S&P North American Natural Resources ETF (AMEX:NANR) Seasonal Chart
JD.com, Inc. (NASD:JD) Seasonal Chart
Akamai Technologies, Inc. (NASD:AKAM) Seasonal Chart
Textron, Inc. (NYSE:TXT) Seasonal Chart
The Markets
Stocks rallied on Friday as the market started to speculate that rates may start to pause now that treasury yields have reached close proximity of the Fed Funds target by the end of the year. The S&P 500 Index jumped by 2.37%, bouncing from its 20-day moving average that was broken earlier in the week. The benchmark is now on track to test its declining 50-day moving average that hovers just below 3900. A short-term head-and-shoulders pattern can start to be identified with the neckline to the bullish setup coming in around 3750. A break of this limit would project a 150-point move higher, which would get the benchmark back to that intermediate hurdle at the 50-day moving average. What the benchmark does with this intermediate level of resistance will be highly scrutinized as logic suggests that using the declining hurdle as a level to sell into remains the appropriate course of action until the path of the intermediate trend shifts back positive. Momentum indicators continue to show a positive divergences versus price, which indicated waning selling pressures ahead of the strong Friday session.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- Reversal of yields on Friday
- Ongoing rollover of the US Dollar Index
- Improvement in the credit market and the breakout of high-yield relative to investment grade debt
- The jump in investment manager exposure to stocks
- 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 October 24
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
Sentiment on Friday, 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
| Sponsored By... |
|
