Stock Market Outlook for April 29, 2022
The trend of underperformance in the technology sector continues to provide something to avoid, but the fact that momentum indicators are remaining above the oversold extremes seen in January provides a glimmer of hope that selling pressures are becoming exhausted.
*** 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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PIMCO New York Municipal Income Fund (NYSE:PNF) Seasonal Chart
Direxion Daily 7-10 Year Treasury Bull 3x Shares (NYSE:TYD) Seasonal Chart
Vanguard S&P 500 Growth ETF (NYSE:VOOG) Seasonal Chart
Vanguard Long-Term Government Bond ETF (NASD:VGLT) Seasonal Chart
Alimentation Couche-Tard, Inc. (TSE:ATD/B.TO) Seasonal Chart
iShares Core High Quality Canadian Bond Index ETF (TSE:XQB.TO) Seasonal Chart
iShares Global Real Estate Index ETF (TSE:CGR.TO) Seasonal Chart
Waste Connections, Inc. (TSE:WCN.TO) Seasonal Chart
Alphabet Inc. – Class C (NASD:GOOG) Seasonal Chart
The Markets
Stocks bounced back on Thursday as investors pared back negative bets as the month of April comes to a close. The S&P 500 Index gained just less than 2.5%, inching back above previous horizontal support at 4280 that forms the neckline to the ominous head-and-shoulders topping pattern. Support around the March lows at 4157 is firming as the average end of month/start of month uptick in prices allows for the reprieve of selling pressures for the time being. Resistance around major moving averages at the 50 and 200-day remain the formidable threats overhead and, as along as the benchmark remains below, a negative trend over an intermediate timeframe is implied. Momentum indicators still showing characteristics of a bearish trend and, while comforting, Thursday’s pronounced snap-back fails to change the threats that plague stocks heading into the start of the risk-off time of year in May.
Soon to be released…
Our monthly report for May is complete and will be released to subscribers on Friday. Look for this report in your inbox.
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Today, in our Market Outlook to subscribers, we discuss the following:
- The parabolic rise in the US Dollar Index to multi-year highs
- The technology sector and when we see our opportunity to ramp up exposure to the beaten down market segment
- Weekly jobless claims and the health of the labor market
- Natural gas inventories and the seasonal trade in the commodity
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Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.15.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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