Stock Market Outlook for July 26, 2023
Money managers are showing signs of leaning back into their equity short positions again.
*** 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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Tetra Tech Inc. (NASD:TTEK) Seasonal Chart
Haverty Furniture Cos., Inc. (NYSE:HVT) Seasonal Chart
Ducommun, Inc. (NYSE:DCO) Seasonal Chart
Willdan Group Inc. (NASD:WLDN) Seasonal Chart
Royal Bank Of Canada (NYSE:RY) Seasonal Chart
Ubiquiti Inc. (NYSE:UI) Seasonal Chart
SPDR S&P 1500 Value Tilt ETF (AMEX:VLU) Seasonal Chart
The Markets
Stocks continued to remain afloat on Tuesday as investors anticipated the busy week for earnings and the Fed interest rate announcement on Wednesday. The S&P 500 Index closed with a gain of just less than three-tenths of one percent after charting a fresh 52-week high intraday. For each of the past five sessions, we have observed the benchmark backing off of the highs of the day into the close, hinting of some profit taking around these heights as the momentum in the market fades. MACD has effectively flat-lined over the past month, diverging from the strength of price, an indication of fading buying demand. Support remains firm at major moving averages below and a check-back towards these hurdles at the 20 and 50-day is the base case as the market enters the more volatile phase on the seasonal timeline in August and September.
Today, in our Market Outlook to subscribers, we discuss the following:
- Commitment of Traders (COT) report suggests that money managers are starting to lean negatively again
- Google searches for the term “Recession”
- Case-Shiller Home Price Index
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.87.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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