Stock Market Outlook for January 26, 2023
*** 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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Visa Inc. (NYSE:V) Seasonal Chart
Parke Bancorp Inc. (NASD:PKBK) Seasonal Chart
Gladstone Land Corp. (NASD:LAND) Seasonal Chart
Box, Inc. (NYSE:BOX) Seasonal Chart
e.l.f. Beauty, Inc. (NYSE:ELF) Seasonal Chart
The Markets
Stocks closed little changed on Wednesday in what was a reversal session starting from a sharp dip at the opening bell amidst concerns pertaining to the guidance from tech titan Microsoft (MSFT). The large-cap index closed essentially unchanged, lower by a mere two basis points (0.02%). The benchmark remains marginally above previous declining trendline resistance and the 200-day moving average, both of which had worked to cap any upside attempt over the past year. At the lows of the session, the benchmark reached back to the 20 and 50-day moving averages at 3914 and 3939, respectively, which are keeping the short to intermediate-term rising paths alive, for now. The 50-day moving average is quickly converging on the 200-day moving average in what could become a bullish crossover event, but, as alluded to in our last report, buying these supposedly bullish technical events have traditionally led to poor entry points. The technicals continue to provide a rather neutral view with momentum indicators narrowing around their middle lines. The market appears to be searching for a catalyst following the mean reversion to start the year.
Today, in our Market Outlook to subscribers, we discuss the following:
- Hourly look at the large-cap benchmark
- The average performance of bonds, stocks, and gold following the last Fed rate hike
- The debate over whether we are in an inflationary or disinflationary environment and what it traditionally takes to get the annual rise in consumer prices back to the 2% band that the Fed desires
- The state of supply and demand in the energy market and the stocks that are exposed
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Sentiment on Wednesday, as gauged by the put-call ratio, ended neutral at 0.99.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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