Equity Clock

Stock Market Outlook for August 31, 2020

Margin debt in investor accounts has pretty much normalized from the first quarter plunge, however, credit balances, indicative of short positions, remain elevated.

 

 

 

*** 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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CVB Financial Corp. (NASD:CVBF) Seasonal Chart

Ryanair Holdings PLC (NASD:RYAAY) Seasonal Chart

Banco Frances Del Rio SA (NYSE:BBAR) Seasonal Chart

iShares Morningstar Large-Cap ETF (NYSE:JKD) Seasonal Chart

Expeditors Intl of Washington, Inc. (NASD:EXPD) Seasonal Chart

Starbucks Corp. (NASD:SBUX) Seasonal Chart

Schwab Fundamental U.S. Broad Market Index ETF (AMEX:FNDB) Seasonal Chart

iShares Transportation Average ETF (NYSE:IYT) Seasonal Chart

 

 

The Markets

Stocks grinded higher on Friday as investors continue to let down their guard.  The S&P 500 Index added two-thirds of one percent, closing above the psychologically important 3500 level.  Gradually, our target of 3550 is becoming very close to being achieved and, with tendencies for the start of September being mildly positive, our objective could be fulfilled in the days ahead.  The benchmark is becoming increasingly overbought with the relative strength index (RSI) at 79.26.  This is the highest level since January of 2018 as the large-cap benchmark charted a parabolic trend into the start of the new year, eventually leading to a collapse shortly thereafter.  Energy and materials topped the leaderboard on Friday, however, the performance in the technology sector remained prominent as investment managers pad their books ahead of the end of the month.

Soon to be released…

We are just putting the finishing touches on our extensive monthly report for September, covering everything from what has brought the market to the present point and what the next driver is expected to be through the end of the year.  Look for this report in your inbox in the days (hours) ahead.

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Sentiment on Friday, 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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