Equity Clock

Stock Market Outlook for September 25, 2020

Price of natural gas pushing higher as the year-to-date change in inventories converges with seasonal norms.

 

 

 

*** 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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SNC-Lavalin Group, Inc. (TSE:SNC.TO) Seasonal Chart

Ingredion Inc. (NYSE:INGR) Seasonal Chart

Werner Enterprises, Inc. (NASD:WERN) Seasonal Chart

Peoples Bank (NASD:PBCT) Seasonal Chart

Gibraltar Steel Corp. (NASD:ROCK) Seasonal Chart

Lamar Advertising Co. (NASD:LAMR) Seasonal Chart

Commercial Metals Co. (NYSE:CMC) Seasonal Chart

AAR Corp. (NYSE:AIR) Seasonal Chart

Autoliv, Inc. (NYSE:ALV) Seasonal Chart

XPO Logistics, Inc. (NYSE:XPO) Seasonal Chart

UBS AG (NYSE:UBS) Seasonal Chart

China Fund, Inc. (NYSE:CHN) Seasonal Chart

Materials Select Sector SPDR Fund (NYSE:XLB) Seasonal Chart

 

 

The Markets

Stocks were choppy on Thursday with the S&P 500 Index trading on either side of the flatline throughout the day.  The S&P 500 Index closed with a gain of three-tenths of one percent, struggling to recoup the loss recorded in the prior day’s session.  The benchmark continues to hover in this range around 3250, which is the level from which it broke down from back in February.  Reaction to this zone continues to be closely monitored.  The 50-day moving average remains in a position of resistance overhead, while 100 and 200-day moving averages are being eyed as potential levels of support below at 3201 and 3106, respectively.  The 100-day moving average was tested as support at the lows of Thursday’s session, but the bounce from this hurdle to confirm support was less than convincing.  Momentum indicators continue to point lower and have yet to show signs of rebounding.

On schedule for the Thursday session, the Energy Information Administration released its tally of natural gas inventories for the week just past.  The administration reported that natural gas in storage increased by 66 billion cubic feet (bcf) last week, less than the 89 bcf injection reported in the week prior.  Between an average low at the end of July and an average peak around the start of December, the price of natural gas tends to rise as the market prices in the shifting supply and demand dynamics as we enter winter heating season.  The price of the commodity recently pulled back from its abrupt rise between the end of July and the end of August and a renewed opportunity to get long the commodity has been presented.  Price has achieved a higher intermediate-term low and a trend of higher-highs and higher-lows appears to be underway. 

Sentiment on Thursday, as gauged by the put-call ratio, ended neutral at 1.00.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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