Equity Clock

Stock Market Outlook for October 15, 2020

Stocks continue to react to resistance presented by the summer highs.

 

 

 

*** 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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Mattel, Inc. (NASD:MAT) Seasonal Chart

Illumina, Inc. (NASD:ILMN) Seasonal Chart

Sherwin Williams Co. (NYSE:SHW) Seasonal Chart

VeriSign, Inc. (NASD:VRSN) Seasonal Chart

Acuity Brands, Inc. (NYSE:AYI) Seasonal Chart

Metlife, Inc. (NYSE:MET) Seasonal Chart

BMO Equal Weight U.S. Banks Hedged to CAD Index ETF (TSE:ZUB.TO) Seasonal Chart

Insteel Industries, Inc. (NASD:IIIN) Seasonal Chart

TD Ameritrade Holding Corp. (NASD:AMTD) Seasonal Chart

Cambridge Bancorp (NASD:CATC) Seasonal Chart

Sun Life Financial Services of Canada, Inc. (TSE:SLF.TO) Seasonal Chart

Vanguard U.S. Total Market Index ETF (TSE:VUN.TO) Seasonal Chart

iShares Core S&P U.S. Total Market Index ETF (TSE:XUU.TO) Seasonal Chart

iShares U.S. Financials ETF (NYSE:IYF) Seasonal Chart

Schwab U.S. Large-Cap Value ETF (NYSE:SCHV) Seasonal Chart

Vanguard Russell 1000 Value ETF (NASD:VONV) Seasonal Chart

ProShares UltraShort Yen (NYSE:YCS) Seasonal Chart

 

 

The Markets

Stocks weakened on Wednesday as headlines continued to point to the unlikeliness of a stimulus deal ahead of the election.  The S&P 500 Index shed two thirds of one percent, trading back to the upside open gap that was charted on Monday.  The benchmark continues to hold on to a gain for the week.  Struggle at resistance of the previous all-time high continues to be implied.  The back-to-back daily declines around the previous peak raises the prospect of a double-top, although it remains pre-mature to conclude.  Major moving averages at the 20 and 50-day are below, presenting points of support upon pullback.  The greater risk is a breakdown below these thresholds, which would likely result in a test of previous support around 3200.  A breakdown below the lows charted in September would likely capture the attention of long-term investors.  With the push and pull of earnings season now upon us and ongoing election uncertainties, there is no real reason for stocks, on a broad scale, to go anywhere for the time-being.  Once earnings are digested and the votes have been cast, investors are likely to be more keen on making bets pertaining the market direction, whether it be higher or lower.  Seasonally, weakness during election years tends to persist into the end of October before bottoming ahead of the election.

Sentiment on Wednesday, 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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