Equity Clock

Stock Market Outlook for February 4, 2021

The change in oil inventories through the first month of the year negatively diverged from seasonal norms.

 

 

 

*** 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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Landec Corp. (NASD:LNDC) Seasonal Chart

Canon, Inc. (NYSE:CAJ) Seasonal Chart

InterActiveCorp (NASD:IAC) Seasonal Chart

Northern Shield Resources Inc. (TSXV:NRN.V) Seasonal Chart

New Look Vision Group, Inc. (TSE:BCI.TO) Seasonal Chart

 

 

The Markets

Stocks closed mildly higher on Wednesday as a rally in energy stocks helped to support broader risk sentiment.  The S&P 500 Index added a tenth of one percent, testing levels within the downside gap that was opened one week ago around 3840.  Short-term support at the rising 20-day moving average has been retaken and intermediate support at the 50-day moving average remains solid.  Momentum indicators continue to show characteristics of a bullish trend.  Barring some significant negative catalyst, levels down to previous horizontal resistance, now support, at 3550 remain fair game through the end of February.

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

• Review of the market tendencies for February
• A look at oil and the energy sector

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On schedule for the Wednesday session, the Energy Information Administration (EIA) released its look at petroleum inventories in the US.  The EIA reported that oil inventories dropped by 1.0 million barrels last week, which is a divergence compared to the small injection of 446,000 barrels that was expected by analysts.  Gasoline stockpiles, meanwhile, increased by 4.5 million barrels.  The result saw the days of supply of oil drop by two-tenths of a day to 32.4, while gasoline days of supply ticked higher by a third of a day to 32.3.  The average days of supply for each through this point in January is 22.6 and 27.6, respectively.  We sent out further insight to subscribers intraday.  Subscribe now.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.85.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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