Equity Clock

Stock Market Outlook for August 24, 2020

Technology continues to push the S&P 500 Index past the all-time high threshold as robust consumer activity provides a catalyst unlike anything ever seen before.

 

 

 

*** 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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Telefonica SA (NYSE:TEF) Seasonal Chart

Nike Inc. (NYSE:NKE) Seasonal Chart

Gran Tierra Energy Inc. (TSE:GTE.TO) Seasonal Chart

Kemper Corp. (NYSE:KMPR) Seasonal Chart

Acacia Technologies Group (NASD:ACTG) Seasonal Chart

Sierra Metals Inc.. (TSE:SMT.TO) Seasonal Chart

West Bancorporation, Inc. (NASD:WTBA) Seasonal Chart

Salisbury Bancorp, Inc. (NASD:SAL) Seasonal Chart

US Global Jets ETF (AMEX:JETS) Seasonal Chart

Intel Corp. (NASD:INTC) Seasonal Chart

Norfolk Southern Corp. (NYSE:NSC) Seasonal Chart

Hibbett Sports Inc. (NASD:HIBB) Seasonal Chart

Kimball Intl, Inc. (NASD:KBAL) Seasonal Chart

WisdomTree Japan Hedged Equity Fund (NYSE:DXJ) Seasonal Chart

WisdomTree Japan Hedged SmallCap Equity Fund (NASD:DXJS) Seasonal Chart

 

 

The Markets

Stocks gained to close the final session of the week as investors continued to express their desire to hold stocks in the technology sector.  The S&P 500 Index gained just over a third of one percent, charting a fresh all-time closing high.  Rising short and intermediate-term support at the 20 and 50-day moving averages can now be seen 2.0% and 5.2% below present levels.  The gains were, once again, driven by technology, with the ETF that tracks the space (XLK) up by 1.27%.  The Technology SPDR ETF (XLK) is once again into overbought territory with the Relative Strength Index (RSI) back above 70, a level it has been flirting with consistently over the past few months.

On the economic front, a report on existing home sales in the US was released during Friday’s session.  The headline print of July’s report indicates that activity increased by 24.7% last month to a seasonally adjusted annualized rate of 5.86 million.  The result exceeded the consensus analyst estimate that called for a rate of 5.40 million.  The year-over-year change is back into positive territory at +8.7%.  Stripping out the seasonal adjustments, existing home sales actually increased by 17.8% in July, which is much stronger than the 6.3% decline that is average for this time of year.  This is the strongest July increase on record.  The year-to-date change is now higher by 37.6% through the end of July, which is much stronger than the 25.1% rise that is average by this point in the year.  Instantly we shift from one of the worst year-to-date performances on record to one of the best.  We sent out further insight to subscribers intraday.  Signup now to access our report.

Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.69.

 

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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