Stock Market Outlook for February 28, 2023
*** 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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SunLink Health Systems, Inc. (AMEX:SSY) Seasonal Chart
Golden Matrix Group Inc (NASD:GMGI) Seasonal Chart
PepsiCo, Inc. (NASD:PEP) Seasonal Chart
ProShares Ultra Bloomberg Natural Gas (NYSE:BOIL) Seasonal Chart
TC Energy Corp. (NYSE:TRP) Seasonal Chart
Lifetime Brands, Inc. (NASD:LCUT) Seasonal Chart
Sanofi SA (NASD:SNY) Seasonal Chart
Rogers Communications, Inc. (TSE:RCI/B.TO) Seasonal Chart
The Markets
Stocks achieved minor gains in the second to last session of February as a reprieve in the rising trajectory of yields and the dollar alleviated selling pressures in the equity market. The S&P 500 Index closed higher by just over three-tenths of one percent, bouncing from the 200-day moving average that was tested on Friday. Levels above the rising 50-day moving average have been retaken. A confluence of support presented by major moving averages can be seen within the range between 3900 and 4000 and so far this is zone continues to hold. It would take a break of this span to suggest a more dire path for the market than merely a range-bound span, generally between 3800 and 4200. Momentum indicators remain on a sell signal following the bearish MACD crossover that was charted a couple of weeks ago. Altogether, there is nothing particularly enticing of the technicals to be aggressive on either side of the spectrum, bullish or bearish, but we suspect that at some point in the days/weeks ahead, the desire will be present to look to take on greater risk (stocks) in portfolios given the positive tendency that is average between the middle of March through to the middle of April, resulting in one of the strongest timeframes of the year for the market before the offseason for stocks begins in May. Further weakness attributed to this rollover in prices that began early in February could lead to ideal buying opportunities for the spring ramp in prices ahead.
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Today, in our Market Outlook to subscribers, we discuss the following:
- Ratings changes in this week’s chart books: Find out which groups we have downgraded to Avoid and what commodity has warranted a view to Accumulate
- Confounding technical action in the health care sector
- US Durable Goods Orders
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Sentiment on Monday, as gauged by the put-call ratio, ended bearish at 1.04.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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