Stock Market Outlook for February 11, 2022
A market that is more willing to respect levels of resistance and ignore levels of support warrants caution.
*** 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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iShares MSCI EAFE Value ETF (NYSE:EFV) Seasonal Chart
Meta Materials Inc. (NASD:MMAT) Seasonal Chart
ALPS Medical Breakthroughs ETF (AMEX:SBIO) Seasonal Chart
NASDAQ Premium Income And Growth Fund Inc. (NASD:QQQX) Seasonal Chart
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (NYSE:PXF) Seasonal Chart
Southwestern Energy Co. (NYSE:SWN) Seasonal Chart
DREAM Unlimited Corp. (TSE:DRM.TO) Seasonal Chart
Sasol Ltd. (NYSE:SSL) Seasonal Chart
FMC Corp. (NYSE:FMC) Seasonal Chart
Maximus, Inc. (NYSE:MMS) Seasonal Chart
Inogen, Inc. (NASD:INGN) Seasonal Chart
WisdomTree International LargeCap Dividend Fund (NYSE:DOL) Seasonal Chart
ValueShares International Quantitative Value ETF (AMEX:IVAL) Seasonal Chart
Vanguard Total World Stock ETF (NYSE:VT) Seasonal Chart
iShares International Developed Property ETF (NYSE:WPS) Seasonal Chart
The Markets
Stocks reversed sharply on Thursday as investors digested a much hotter than expected read of inflation in the US. The S&P 500 Index sold off by 1.81%, giving back all of the prior session’s gain. Support at Wednesday’s upside open gap at 4530 was violated as we see renewed signs of resistance at 4600. As we have stated previously, a market that is more willing to respect levels of resistance and ignore levels of support warrants caution as sellers outweigh buyers. This has been something that we have been seeking in order to justify becoming more conservative in our recently ramped up equity exposure. The benchmark closed at its declining 20-day moving average, providing one last line in the sand to shoot off of, but Thursday’s price action certainly was not encouraging. Momentum indicators are starting to show signs of rolling over following the recent oversold bounce and they continue to show characteristics of a bearish trend.
Today, in our Market Outlook to subscribers, we discuss the following:
- The level on the S&P 500 Index that would start an intermediate trend of lower-lows and lower-highs if broken and how we are reacting in the Super Simple Seasonal Portfolio
- The jump in the cost of borrowing and the ongoing flattening of the yield curve
- US Dollar respecting resistance overhead
- Weekly Jobless Claims and the health of the labor market
- Natural gas inventories and the investment implications
- Consumer Price Index (CPI) and what is driving activity
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Sentiment on Thursday, as gauged by the put-call ratio, actually ended bullish at 0.88, despite the selloff in the market.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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