Equity Clock

Stock Market Outlook for August 19, 2020

S&P 500 Index charts a fresh all-time closing high as US Dollar continues its parabolic trend lower.

 

 

 

*** 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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NetScout Systems, Inc. (NASD:NTCT) Seasonal Chart

BGC Partners, Inc. (NASD:BGCP) Seasonal Chart

Halozyme Therapeutics Inc. (NASD:HALO) Seasonal Chart

Telecom Argentina (NYSE:TEO) Seasonal Chart

Invesco Canadian Preferred Share Index ETF (TSE:PPS.TO) Seasonal Chart

Vanguard Russell 2000 Value ETF (NASD:VTWV) Seasonal Chart

 

 

 

The Markets

Stocks gained on Tuesday with the S&P 500 posting a record closing high.  The large-cap benchmark gained just less than a quarter of one percent, charting a record closing and intraday high.  Consumer and communication services stocks led the strength on the day, while energy, financial, and industrial stocks closed in the red.

On the hourly chart, momentum on the S&P 500 Index has been waning for about a week and a half, but this hasn’t stopped the bullish trend.  MACD and RSI have rolled over from the overbought levels that were charted around the start of August, but they continue to show characteristics of a bullish trending market.  The benchmark has been supported, in the short-term, at its rising 50-hour moving average, which continues to point higher.

On the economic front, a report on housing starts was released before Tuesday’s opening bell.  The headline print of July’s report indicated that activity increased by 22.6% last month to a seasonally adjusted annualized rate of 1.22 million.  Analysts were expecting an increase of a mere 1.6% to a rate of 1.24 million.  Stripping out the adjustments, starts actually increased by 21.6% in July, which is a positive divergence compared to the 1.9% decline that is average for this time of year.  The year-to-date change is now higher by 28.7% through the first seven months of the year, which is now just 10.1% below the seasonal average trend.  We sent out further insight to subscribers intraday.  Subscribe now to access our report.

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.71.

 

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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