July is the second strongest month of the year for stocks with the S&P 500 Index averaging a gain of 2.2% and 75% of periods have closed higher.

Stock Market Outlook for July 5, 2023

July is the second strongest month of the year for stocks with the S&P 500 Index averaging a gain of 2.2% and 75% of periods have closed higher.

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:

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TJX Cos., Inc. (NYSE:TJX) Seasonal Chart

Signet Jewelers Ltd. (NYSE:SIG) Seasonal Chart

VanEck Vectors Retail ETF (NASD:RTH) Seasonal Chart

Walmart Inc. (NYSE:WMT) Seasonal Chart

Kesselrun Resources Ltd. (TSXV:KES.V) Seasonal Chart

Global X Internet of Things Thematic ETF (NASD:SNSR) Seasonal Chart

Note: Due to the Canada Day and Independence Day holiday closures of markets in Canada and the US, our next report will be released on Wednesday, July 5th. Have a great long weekend everyone!

The Markets

Stocks closed strongly higher on Friday as the normal summer rally stretches its legs given the chase for performance/window-dressing into quarter-end and the investment of new funds in the market at the start of the new quarter in July. The S&P 500 Index rallied by 1.23%, charting a fresh 52-week high and continuing to bounce from the 20-day moving average that now sits at 4351. Momentum indicators have curled back higher and RSI is once again knocking on the doorstep of overbought territory at 70. Characteristics of a bullish trend have become well ingrained, supportive of the normal rise in prices that we see of this mid-year period. In our monthly report for July released to subscribers, we make the contention that the large-cap benchmark has the momentum to reach 4,600 as part of this upside thrust, a target based on the calculated move of the breakout from the 400-point span between 3800 and 4200. Following that point and heading into the most volatile time of the year spanning the remainder of the third quarter, the need for renewed caution will exist.

Just released…

Our monthly report for July is out, providing you with everything that you need to know for the month(s) ahead.

Highlights in this report include:

Equity market tendencies in the month of July

Positioning/sentiment no longer a tailwind for stocks

Trading the period of seasonal volatility ahead

Gold

The Summer Rally

What scenario specific seasonal studies have to say

Banks continue to have nothing optimistic to say of the market nor the economy

Canadian Banks

Treasury Yield spreads turning lower again after showing signs of starting to normalize in March

Central bank liquidity supporting equity prices

Analysts forecasting growth through the back half of the year

Strong consumer offsetting weak business activity

The burden against the consumer heading through the back half of the year

Businesses/Producers potentially entering a deflationary phase

Bond market hanging in and still looking good for when positive tendencies resume mid-July

Opportunities outside of the US

Looking for rotation into Emerging Markets

Health care remains the correct prescription for summer portfolios

Gauges of risk reacting to levels of horizontal resistance

Our list of all segments of the market to either Accumulate or Avoid, along with relevant ETFs

Positioning for the months ahead

Sector Reviews and Ratings

Stocks that have Frequently Gained in the Month of July

Notable Stocks and ETFs Entering their Period of Strength in July

Look for this 106-page report in your inbox or via the archive at https://charts.equityclock.com/

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With the new month upon us and as we celebrate the release of our monthly report for July, today we release our screen of all of the stocks that have gained in every July over their trading history. While we at Equity Clock focus on a three-pronged approach (seasonal, technical, and fundamental analysis) to gain exposure to areas of the market that typically perform well over intermediate (2 to 6 months) timeframes, we know that stocks that have a 100% frequency of success for a particular month is generally of interest to those pursuing a seasonal investment strategy. Below are the results:

And how about those securities that have never gained in this seventh month of the year, here they are:

*Note: None of the results highlighted above have the 20 years of data that we like to see in order to accurately gauge the annual recurring, seasonal influences impacting an investment, therefore the reliability of the results should be questioned. We present the above list as an example of how our downloadable spreadsheet available to yearly subscribers can be filtered.

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

Monthly look at the large-cap benchmark

A review of the July tendencies impacting stocks

Margin debt and credit balances in investor accounts

Canada GDP and what the data has to say about where to invest, fundamentally, in the market

Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for July 5

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