Stock Market Outlook for July 14, 2022
The lack of concern in the bond market following the latest Consumer Price Index report suggests that we may be at a turning point in the prevailing negative trend of bond prices.
*** 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 Select Dividend ETF (NASD:DVY) Seasonal Chart
AdvisorShares Peritus High Yield ETF (NYSE:HYLD) Seasonal Chart
iShares U.S. Financials ETF (NYSE:IYF) Seasonal Chart
SPDR Barclays Mortgage Backed Bond ETF (NYSE:SPMB) Seasonal Chart
IQ Real Return ETF (NYSE:CPI) Seasonal Chart
BMO Emerging Markets Bond Hedged to CAD Index ETF (TSE:ZEF.TO) Seasonal Chart
Canadian Pacific Railway (TSE:CP.TO) Seasonal Chart
Royal Caribbean Cruises (NYSE:RCL) Seasonal Chart
First Asset Investment Grade Bond ETF (TSE:FIG.TO) Seasonal Chart
BMO Mid Corporate Bond Index ETF (TSE:ZCM.TO) Seasonal Chart
The Markets
Stocks slipped on Wednesday as traders digested a much hotter than expected read of consumer prices in the US. The S&P 500 Index fell by less than half of one percent, ending at the pivotal 3800 level that we have highlighted exhaustively over the past few months. The upper limit to a declining wedge pattern continues to act as the cap to the recent wave higher in this ongoing trend of lower-lows and lower-highs. The start of July lows around 3750 remains our stop level to recently ramped up equity exposure in order to participate in this summer rally period that we are still giving some leeway towards. Momentum indicators are rolling over again below their middle lines, keeping the characteristics of a negative trend intact. The buy point to the narrowing declining range continues to be pegged at trendline resistance that is just below 3900. Between here and there, we are stuck in this rather neutral state for this summer rally period that has been rather lacklustre, thus far.
Today, in our Market Outlook to subscribers, we discuss the following:
- US Consumer Price Index (CPI)
- Bond prices
- Shipping volumes and expenditures
- The Dow Jones Transportation Average
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Sentiment on Wednesday, as gauged by the put-call ratio, ended slightly bearish at 1.04.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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