Equity Clock

Stock Market Outlook for January 12, 2023

Major benchmarks are showing a mirror image of last year’s topping patterns as price reaches back up to their bear-market breakdown points.

  *** 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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VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (NYSE:EMLC) Seasonal Chart

Coca-Cola Europacific Partners Plc (NASD:CCEP) Seasonal Chart

Penumbra, Inc. (NYSE:PEN) Seasonal Chart

Vanguard Real Estate ETF (NYSE:VNQ) Seasonal Chart

Invesco S&P 500 Low Volatility ETF (NYSE:SPLV) Seasonal Chart

Western Asset Municipal High Income Fund Inc. (NYSE:MHF) Seasonal Chart

BMO Low Volatility Canadian Equity ETF (TSE:ZLB.TO) Seasonal Chart

BMO Global Infrastructure Index ETF (TSE:ZGI.TO) Seasonal Chart

Kohls Corp. (NYSE:KSS) Seasonal Chart

Pembina Pipeline Corp. (NYSE:PBA) Seasonal Chart

Applied Industrial Technologies Inc. (NYSE:AIT) Seasonal Chart

Realty Income Corp. (NYSE:O) Seasonal Chart

Digital Realty Trust, Inc. (NYSE:DLR) Seasonal Chart

CCL Industries Inc. – Class B (TSE:CCL/B.TO) Seasonal Chart

WD-40 Co. (NASD:WDFC) Seasonal Chart

Pinnacle West Cap Corp. (NYSE:PNW) Seasonal Chart

   

The Markets

Stocks rallied on Wednesday as the ongoing slide in the cost of borrowing has investors racing back into the formerly maligned growth sectors (eg. technology, consumer discretionary).  The S&P 500 Index closed with a gain of 1.28%, moving firmly above the recent pivot point at 3900 and reaching back towards declining trendline resistance and the 200-day moving average around 4000.  Momentum indicators remain on a buy signal following Friday’s bullish crossover of MACD with its signal line and support remains solid at November’s upside gap between 3770 and 3860.  The next major catalyst is directly ahead with the  monthly Consumer Price Index (CPI) report for December, slated to be released on Thursday, providing valuable clues as to the impact that the Fed is having reining in the unwanted rise in the cost of living.  While the market has strengthened over the past three months based on the prospect of inflationary pressures alleviating, a big seasonal factor has provided a calming influence on the trajectory of prices, that being the normal decline in fuel prices following their normal summer peak.  These pressures typically re-assert themselves through the first half of the year in what is the strongest period for price growth on the calendar.  The months ahead will provide a real test of whether inflationary pressures are under control or not, because, given the data that we have been looking at through the end of last year, we have not seen it yet with core necessities (food and shelter) still showing a hot pace.  We will have the complete breakdown of the results of December’s CPI in our intraday report to subscribers on Thursday.

Today, in our Market Outlook to subscribers, we discuss the following:

• Growth stocks continue to elevate from levels of support
• Triple-Qs trading into a peak of a descending triangle pattern
• Mirror images of the topping patterns of major benchmarks
• US petroleum status, the state of demand, and the price of oil/energy stocks

Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for January 12 Not signed up yet?  Subscribe now to receive full access to all of the research and analysis that we publish.

Sentiment on Wednesday, as gauged by the put-call ratio, ended close to neutral at 0.97.     Seasonal charts of companies reporting earnings today:  

S&P 500 Index

 

TSE Composite

 

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