Equity Clock

Stock Market Outlook for July 24, 2020

Stocks fall as indications continue to emerge that the economic rebound has stalled.

 

 

 

*** 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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Chubb Ltd. (NYSE:CB) Seasonal Chart

CMS Energy Corp. (NYSE:CMS) Seasonal Chart

Chevron Corp. (NYSE:CVX) Seasonal Chart

Cal-Maine Foods, Inc. (NASD:CALM) Seasonal Chart

BMO S&P-TSX Equal Weight Banks Index ETF (TSE:ZEB.TO) Seasonal Chart

Leidos Holdings, Inc. (NYSE:LDOS) Seasonal Chart

Marine Products Corp. (NYSE:MPX) Seasonal Chart

Marlin Business Services Corp. (NASD:MRLN) Seasonal Chart

CDW Corp. (NASD:CDW) Seasonal Chart

Purpose High Interest Savings ETF (TSE:PSA.TO) Seasonal Chart

Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) (TSE:VGH.TO) Seasonal Chart

Invesco KBW Property & Casualty Insurance ETF (NASD:KBWP) Seasonal Chart

Aqua America, Inc. (NYSE:WTR) Seasonal Chart

Diageo PLC (NYSE:DEO) Seasonal Chart

Nu Skin Enterprises, Inc. (NYSE:NUS) Seasonal Chart

 

 

The Markets

Stocks closed firmly lower on Thursday as investors digested the release of earnings and continued to monitor the ongoing spread of the coronavirus in the US.  The S&P 500 Index shed 1.23%, undercutting the lows from the prior day’s session.  Rising 20 and 50-day moving averages remain in positions of support at 3168 and 3096, respectively.  Momentum indicators are starting to roll over, including MACD, which is once again converging on its signal line in what could be an imminent sell signal.  It was just a couple of weeks ago, during the average summer rally period, that MACD triggered a buy signal; confirmation of a sell signal this soon after the previous trigger would have bearish implications, beyond the obvious, for the broader market.  Momentum indicators have been negatively diverging from price ever since the early June peak and confirmation of the rollover would indicate that buying momentum has waned.  It was back in the middle of February that momentum indicators last negatively diverged from price, warranting a defensive posture ahead of the plunge in markets through the end of February and into March.  Seasonally, rising volatility around this time of year warrants a more cautious posture in investment portfolios.  In the model that we provide to subscribers at the end of our monthly report, not only did we set our readers up for the over 7% rally from the end of June through the middle of July, but we have also adjusted allocations to reflect this more volatile timeframe for the market.  Subscribe now to follow along.

Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.78.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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