Equity Clock

Stock Market Outlook for March 10, 2021

Looking for mean reversion opportunities into the end of the quarter.

 

 

 

*** 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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Birchcliff Energy Limited (TSE:BIR.TO) Seasonal Chart

Greif Bros. Corp. (NYSE:GEF) Seasonal Chart

Spok Holdings, Inc. (NASD:SPOK) Seasonal Chart

Dawson Geophysical Co. (NASD:DWSN) Seasonal Chart

Shenandoah Telecommunications Co. (NASD:SHEN) Seasonal Chart

Lifeway Foods, Inc. (NASD:LWAY) Seasonal Chart

Gladstone Land Corp. (NASD:LAND) Seasonal Chart

ViacomCBS Inc (NASD:VIAC) Seasonal Chart

First Trust Energy AlphaDEX Fund (NYSE:FXN) Seasonal Chart

Invesco Dynamic Energy Exploration & Production ETF (NYSE:PXE) Seasonal Chart

SPDR S&P Oil & Gas Equipment & Services ETF (NYSE:XES) Seasonal Chart

 

 

The Markets

A snap-back in technology stocks led to a rally on Wall Street on Tuesday.  The S&P 500 Index gained 1.42%, piercing a hole in the declining 20-day moving average that acted as a cap in the previous session.  The rebound also punched a hole in previous trend-channel support, which remains in a position of resistance around 3900.  Momentum indicators are attempting to curl higher following following the sell signals that were triggered in the last couple of weeks of February.  This market is certainly keeping investors on their toes (us included).  Despite the rally, we cannot discount that a short-term topping pattern for the large-cap benchmark may be in the works with downside risks towards previous resistance, now support, at 3550.  The last month of the quarter is a notorious mean reverting month as portfolio managers rebalance their books, therefore we are not surprised to see a significant gyration back to the beaten down technology sector as we head into the middle of the month.  The quarter-end influence may continue to be prominent in market activity through the next couple of weeks.

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

• The rebound in the Technology sector
• Quarter-end mean reversion and what that could entail for asset allocations through the next couple of weeks
• The Copper/Gold ratio

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Sentiment on Tuesday, as gauged by the put-call ratio, ended close to neutral at 0.92.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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