Equity Clock

Stock Market Outlook for August 18, 2021

Retail ETF turning lower from resistance at $98 following a weak retail sales report for July. Find out the level that we will be seeking to target for a buying opportunity ahead of the Fall.

 

 

 

*** 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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Nike Inc. (NYSE:NKE) Seasonal Chart

Hain Celestial Group, Inc. (NASD:HAIN) Seasonal Chart

HudBay Minerals Inc. (TSE:HBM.TO) Seasonal Chart

Minerals Technologies Inc. (NYSE:MTX) Seasonal Chart

California Amplifier, Inc. (NASD:CAMP) Seasonal Chart

Designer Brands Inc. (NYSE:DBI) Seasonal Chart

BrightSphere Investment Group Inc. (NYSE:BSIG) Seasonal Chart

iShares S&P Global Consumer Discretionary Index ETF (CAD-Hedged) (TSE:XCD.TO) Seasonal Chart

BMO MSCI All Country World High Quality Index ETF (TSE:ZGQ.TO) Seasonal Chart

 

 

The Markets

Stocks dipped on Tuesday following a weaker than expected read of retail sales in the US.  The S&P 500 Index shed seven-tenths of one percent, reaching back to test short-term support at the rising 20-day moving average at the low of the session.  Intermediate support remains intact at the rising 50-day moving average at 4341.  The benchmark continues to hover around the mid-point to the approximately 200-point rising range that can now be seen between 4350 and 4550.  The lack of progress in the upper limit of the span in recent months highlights the waning enthusiasm that exists for stocks at these heights.  Momentum indicators, which are still showing characteristics of a bullish trend, are flat-lining, also a testament to the lack of excitement for stocks at this juncture. 

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

• US Retail Sales and what is driving activity
• SPDR S&P Retail ETF (XRT)
• The defensive tilt during Tuesday’s session and what is benefiting our model portfolio
• US Industrial Production and what the results are saying about the fundamental themes that warrant exposure longer-term

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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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