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Stock Market Outlook for October 31, 2022


While everyone starts to discount the long-term potential of the Technology sector, the technicals are still pointing to an ongoing positive trend.

 

Real Time Economic Calendar provided by Investing.com.

 

 

*** 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.

Invesco Dynamic Building & Construction ETF (NYSE:PKB) Seasonal Chart

Invesco Dynamic Building & Construction ETF (NYSE:PKB) Seasonal Chart

Installed Building Products Inc. (NYSE:IBP) Seasonal Chart

Installed Building Products Inc. (NYSE:IBP) Seasonal Chart

iShares U.S. Industrials ETF (NYSE:IYJ) Seasonal Chart

iShares U.S. Industrials ETF (NYSE:IYJ) Seasonal Chart

Unitedhealth Group, Inc. (NYSE:UNH) Seasonal Chart

Unitedhealth Group, Inc. (NYSE:UNH) Seasonal Chart

Analog Devices, Inc. (NASD:ADI) Seasonal Chart

Analog Devices, Inc. (NASD:ADI) Seasonal Chart

First Trust Industrials/Producer Durables AlphaDEX Fund (NYSE:FXR) Seasonal Chart

First Trust Industrials/Producer Durables AlphaDEX Fund (NYSE:FXR) Seasonal Chart

Vanguard S&P Mid-Cap 400 Value ETF (NYSE:IVOV) Seasonal Chart

Vanguard S&P Mid-Cap 400 Value ETF (NYSE:IVOV) Seasonal Chart

Xerox Holdings Corp. (NASD:XRX) Seasonal Chart

Xerox Holdings Corp. (NASD:XRX) Seasonal Chart

CIGNA Corp. (NYSE:CI) Seasonal Chart

CIGNA Corp. (NYSE:CI) Seasonal Chart

Invesco Dynamic Pharmaceuticals ETF (NYSE:PJP) Seasonal Chart

Invesco Dynamic Pharmaceuticals ETF (NYSE:PJP) Seasonal Chart

 

 

 

The Markets

Stocks surged on Friday as a jump in shares of Apple (AAPL) following earnings helped to alleviate the overwhelming negative sentiment that has proliferated in recent days and weeks.  The S&P 500 Index closed higher by just less than 2.5%, advancing firmly beyond intermediate resistance at the 50-day moving average and now intersecting with the declining 100-day moving average at 3903.  The 20-day moving average remains in a position of short-term support at 3718.  Momentum indicators are still pointing higher following the positive divergences that were charted through the middle of October, alerting us to the evidence of selling exhaustion in the market that allowed us to take on greater risk in the portfolio prior to this tremendous move higher in stocks that has now been realized.  The strongest time of the year for stocks is underway, but we are not expecting a perfect trajectory higher over the next six months ahead given the degradation in the economy that continues to progress.  We are benefitting presently from our increased risk exposure, but we remain willing and able to retrench when and if coincident indicators confirm the onset of a recession, an event that has an increased likelihood of occurring around the start of the new year.

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

  • Weekly look at the large-cap benchmark
  • Mid-term election year tendencies for stocks
  • The long-term trend of the technology sector
  • Yield curve inversion and when you should be concerned about equity investments
  • Canada Gross Domestic Product (GDP)

Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for October 31

Not signed up yet?  Subscribe now to receive full access to all of the research and analysis that we publish.

Just released…

Our Monthly Outlook for November is out, providing you with everything to set you up for the month(s) ahead.

Highlights in this report include:

  • Equity market tendencies in the month of November
  • Fourth quarter performance for stocks following pronounced September declines
  • First back-to-back monthly declines in Home Prices since January of 2019
  • The Election Year Cycle for stocks
  • Institutional managers underexposed to stocks into year-end, but will they take a bite?
  • Concerns for retail ahead of the holiday season
  • Shipping is slipping again
  • Industrial production metrics holding up, but for how long
  • Fed showing no success reining in inflationary pressures
  • The correlation between wages and the effective Federal funds rate
  • Out with rate sensitives and in with rate beneficiaries
  • Job openings falling and layoffs jumping
  • Wholesaler inventories still ballooning except for one segment of the economy
  • Bonds
  • US Dollar
  • The rise of Bitcoin
  • Breadth indicators rebounding from levels of significance
  • Seasonal decline in volatility into the end of the year
  • Time to shift focus to smaller cap stocks
  • Positioning for the months ahead
  • Sector Reviews and Ratings
  • Stocks that have Frequently Gained in the Month of November
  • Notable Stocks and ETFs Entering their Period of Strength in November

Subscribers can look for this report in their inbox or via the report archive at https://charts.equityclock.com/

Not subscribed yet?  Signup now for only $25 per month and receive access to all of the research that we publish, including our daily/monthly reports, seasonal profiles, and our widely popular chart books, providing clear Accumulate or Avoid ratings of each segment of the market.

Sentiment on Friday, as gauged by the put-call ratio, ended slightly bullish at 0.92.

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Seasonal charts of companies reporting earnings today:

Stryker Corporation Seasonal Chart Aflac Incorporated Seasonal Chart Williams Companies, Inc. (The) Seasonal Chart NXP Semiconductors N.V. Seasonal Chart Arista Networks, Inc. Seasonal Chart Global Payments Inc. Seasonal Chart ON Semiconductor Corporation Seasonal Chart SBA Communications Corporation Seasonal Chart Public Service Enterprise Group Incorporated Seasonal Chart American Water Works Seasonal Chart Hologic, Inc. Seasonal Chart Cincinnati Financial Corporation Seasonal Chart Howmet Aerospace Inc. Seasonal Chart Loews Corporation Seasonal Chart Avis Budget Group, Inc. Seasonal Chart CNA Financial Corporation Seasonal Chart Regal Rexnord Corporation Seasonal Chart Acadia Healthcare Company, Inc. Seasonal Chart Lattice Semiconductor Corporation Seasonal Chart Chemed Corp. Seasonal Chart Sonoco Products Company Seasonal Chart XPO Logistics, Inc. Seasonal Chart Marriott Vacations Worldwide Corporation Seasonal Chart Trex Company, Inc. Seasonal Chart Saia, Inc. Seasonal Chart Ryman Hospitality Properties, Inc. Seasonal Chart Vornado Realty Trust Seasonal Chart Leggett & Platt, Incorporated Seasonal Chart ONE Gas, Inc. Seasonal Chart Insperity, Inc. Seasonal Chart CVR Energy Inc. Seasonal Chart Flowserve Corporation Seasonal Chart The Goodyear Tire & Rubber Company Seasonal Chart Rambus, Inc. Seasonal Chart Alliance Resource Partners, L.P. Seasonal Chart Boise Cascade, L.L.C. Seasonal Chart CNO Financial Group, Inc. Seasonal Chart Herbalife Nutrition Ltd. Seasonal Chart PriceSmart, Inc. Seasonal Chart Harmonic Inc. Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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