Stock Market Outlook for December 9, 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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BMO Laddered Preferred Share Index ETF (TSE:ZPR.TO) Seasonal Chart
BMO MSCI Emerging Markets Index ETF (TSE:ZEM.TO) Seasonal Chart
Calamos Global Total Return Fund (NASD:CGO) Seasonal Chart
Morgan Stanley Emerging Markets Domestic Debt Fund (NYSE:EDD) Seasonal Chart
iShares Currency Hedged MSCI Emerging Markets ETF (AMEX:HEEM) Seasonal Chart
Aberdeen Standard Physical Platinum Shares ETF (NYSE:PPLT) Seasonal Chart
iShares MSCI EAFE Small-Cap ETF (NASD:SCZ) Seasonal Chart
Adobe Systems, Inc. (NASD:ADBE) Seasonal Chart
iShares S&P/TSX Capped REIT Index ETF (TSE:XRE.TO) Seasonal Chart
Acadian Timber Corp. (TSE:ADN.TO) Seasonal Chart
iShares S&P/TSX Small Cap Index ETF (TSE:XCS.TO) Seasonal Chart
iShares Currency Hedged MSCI EAFE ETF (AMEX:HEFA) Seasonal Chart
The Markets
Stocks drifted higher on Thursday as major benchmarks rebounded from oversold lows charted in recent days. The S&P 500 Index closed with a gain of three-quarters of one percent, managing to keep the confluence of support just above 3900 intact. The benchmark has been burdened so far in December by declining trendline resistance, now hovering around 4050, a declining hurdle that just about every market participant is watching and ready to hold as culprit for the next leg lower in stocks. Seasonal tendencies, however, a poised to put up a good fight to support this market, once we move beyond the normal tax-loss selling period during the first half of December. MACD remains on a sell signal that was triggered on Tuesday and the Relative Strength Index has found itself below rising trendline support. The technicals of the market are suggesting that stocks are top heavy at the present time, but, with seasonality nearing the point at which it flips positive for the notorious Santa Claus rally period, the bears may be hesitant about pressing their shorts until the new year or until a negative catalyst materializes. Next catalyst to watch is November’s Producer Price Index, providing an updated look at the state of inflationary pressures in the economy.
Today, in our Market Outlook to subscribers, we discuss the following:
- Watching some of the most beaten down segments of the market from this year for signs of mean reversion into year-end
- Weekly Jobless Claims and the health of the labor market
- The more severe than average spread of influenza heading into the heart of respiratory illness season
- Investing in the health care sector and two industries showing enticing setups heading into their periods of seasonal strength
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for December 9
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Sentiment on Thursday, as gauged by the put-call ratio, ended slightly bullish at 0.87.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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