Stock Market Outlook for December 5, 2022
*** 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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Vanguard FTSE Developed Europe All Cap Index ETF (TSE:VE.TO) Seasonal Chart
Finning Intl, Inc. (TSE:FTT.TO) Seasonal Chart
Denison Mines Corp. (TSE:DML.TO) Seasonal Chart
Martinrea Intl Inc. (TSE:MRE.TO) Seasonal Chart
BMO MSCI EAFE Index ETF (TSE:ZEA.TO) Seasonal Chart
Invesco Water Resources ETF (NASD:PHO) Seasonal Chart
BMO International Dividend ETF (TSE:ZDI.TO) Seasonal Chart
Western Forest Products Inc. (TSE:WEF.TO) Seasonal Chart
Weyerhaeuser Co. (NYSE:WY) Seasonal Chart
Pan American Silver Corp. (TSE:PAAS.TO) Seasonal Chart
Edwards Lifesciences Corp. (NYSE:EW) Seasonal Chart
Altria Group Inc. (NYSE:MO) Seasonal Chart
The Markets
Stocks closed mixed on Friday as investors parsed the latest read of employment in both the US and Canadian economies. The S&P 500 Index closed lower by a mere tenth of one percent, pinning itself to declining trendline resistance that has been intact all year. That declining hurdle comes in around 4070, providing a significant decision point for investors are they debate the long-term path of the benchmark. The benchmark remains above the declining 200-day moving average at week-end, a level that traditionally caps bear market rallies. The bulls and the bears certainly have much to debate this weekend. Support remains apparent around a confluence of major moving averages (20, 100, and 150-day) just above horizontal support at 3900 and short-term bullish setups continue to be seen, pointing to an upside target of 4200. Momentum indicators are still pointing higher, but we can pick out some signs of exhaustion as the MACD histogram gravitates back to its middle line. Seasonal tendencies for stocks are soft between now and the middle of the month as tax-loss selling/portfolio rebalancing pushes and pulls on stocks until the Santa Claus rally period commences in the back half of the month.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- The lack of risk-taking in the market
- US Employment Situation
- Canada Labour Force Survey
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for December 5
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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.84.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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