Stock Market Outlook for June 2, 2023
The parabolic trend in the technology sector is prone to mean-reverting before the end of the quarter.
*** 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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Duke Energy Corp. (NYSE:DUK) Seasonal Chart
Consolidated Edison, Inc. (NYSE:ED) Seasonal Chart
Iron Mountain, Inc. (NYSE:IRM) Seasonal Chart
Quidel Corp. (NASD:QDEL) Seasonal Chart
Winmark Corp. (NASD:WINA) Seasonal Chart
Vanguard Long-Term Bond ETF (NYSE:BLV) Seasonal Chart
eBay, Inc. (NASD:EBAY) Seasonal Chart
IAMGOLD Corp. (NYSE:IAG) Seasonal Chart
ARK Web x.0 ETF (AMEX:ARKW) Seasonal Chart
Invesco S&P 500 Top 50 ETF (NYSE:XLG) Seasonal Chart
The Markets
Stocks gained in the first session of June as monthly fund inflows injected a bid to equity markets. The S&P 500 Index gained just less than one percent, pushing, once again, marginally above resistance at 4200 and reaching towards the May 30th peak at 4231. Support remains persistent at the congestion of major moving averages, now between 4000 and 4100. Weak upside momentum remains apparent as the benchmark continues along with this grinding path that remains highly tenuous, driven solely by the growth/technology side of the market. Seasonally, beyond the first couple of days of June, tendencies turn gradually negative through the bulk of this last month of the quarter and the end of the first half of the year, giving us little to be enticed by from a broad market perspective until we get into the traditional summer rally period at the end of June.
Today, in our Market Outlook to subscribers, we discuss the following:
- The skewed look at the equity market provided by the Capitalization Weighted S&P 500 Index
- Technology showing a parabolic trend
- Weekly Jobless Claims and the health of the labor market
- A look ahead at what to expect of May’s Non-Farm Payroll report
- US Construction Spending
- US Weekly Petroleum Status
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for June 2
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Released yesterday…
Our monthly report for June is out, providing you with all of the insight that you will require to navigate through the month(s) ahead.
Highlights in this report include:
- Equity market tendencies in the month of June
- Both the bond and equity markets are dominated by bears, but likely only one will be proven correct
- Yield spreads providing fuel for the bearish narrative
- Treasury bonds
- Growth dominating
- Pre-election year path for stocks and the potential to see a change of Presidential leadership should the economy enter recession before election day
- Ongoing weakness in manufacturer sentiment at the time of year when producers in this segment should be the most optimistic
- Employers showing a bias towards part-time employees as deteriorating economic conditions cloud their outlook
- Downfall of manufacturing activity continues to screen negatively for Copper
- Rare April decline in Existing Home Sales
- The shift in momentum of loan activity
- US Dollar
- The first of the weakest two-week spans of the year in the equity market
- Breadth remains poor
- Our list of all segments of the market to either Accumulate or Avoid, along with relevant ETFs
- Positioning for the months ahead
- Sector Reviews and Ratings
- Stocks that have Frequently Gained in the Month of June
- Notable Stocks and ETFs Entering their Period of Strength in June
Look for this 96-page report in your inbox or via the archive at https://charts.equityclock.com/
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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.88.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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