Equity Clock

Stock Market Outlook for September 10, 2020

Job openings surged in July, placing the year-to-date change in the realm of seasonal norms for this time of year.

 

 

 

*** 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:

Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.

TCF Financial Corp. (NYSE:TCF) Seasonal Chart

1st Source Corp. (NASD:SRCE) Seasonal Chart

Armada Hoffler Properties, Inc. (NYSE:AHH) Seasonal Chart

Anterix Inc. (NASD:ATEX) Seasonal Chart

 

 

The Markets

Stocks snapped back from Tuesday’s selloff as investors looked for opportunities amidst the chaos.  The S&P 500 Index jumped by2.01%, reaching back to test previously broken support, now resistance, at the 20-day moving average.  Downside risks toward the rising 50-day moving average at 3312 remains.  The direction of this intermediate term average continues to reiterate a path of higher-highs and higher lows.  Resistance at the 20-day or a break of support at the 50-day could change this viewpoint.

On the economic front, a report on job openings and labor turnover (JOLT) was released during Wednesday’s session.  The headline print of July’s JOLT Survey indicated that openings increased by 10.3% in the month to 6.618 million.  Analysts were expecting a decline of 0.8% to 5.950 million.  The past few months have been the first time in years that unemployment has surpassed the number of openings.  As of July’s employment situation report, there were 16.34 million individuals that were declared unemployed, according to the Bureau of Labor Statistics, providing a ratio of unemployed to openings of approximately 2.5 to 1.  Stripping out the seasonal adjustments, openings actually increased by 18.9% to 6.949 million in July.  The result is much stronger than the 9.5% increase that is average for this time of year and the strongest July increase since 2015.  The year-to-date change is higher by 16.3% through the first seven months of the year, which is now 12.2% below the seasonal average trend.  We sent out further insight to subscribers intraday.  Signup now to access our report.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.86.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...