Equity Clock

Stock Market Outlook for November 13, 2020

Coronavirus concerns weighed on Thursday’s market action, but encouraging developments for risk remain below the surface.

 

 

*** 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.

CIENA Corp. (NYSE:CIEN) Seasonal Chart

AGCO Corp. (NYSE:AGCO) Seasonal Chart

Helmerich & Payne Inc. (NYSE:HP) Seasonal Chart

Chartwell Retirement Residences (TSE:CSH/UN.TO) Seasonal Chart

McDermott Intl, Inc. (NYSE:MDR) Seasonal Chart

MYR Group, Inc. (NASD:MYRG) Seasonal Chart

Bunge Ltd. (NYSE:BG) Seasonal Chart

Photronics, Inc. (NASD:PLAB) Seasonal Chart

High Liner Foods Inc. (TSE:HLF.TO) Seasonal Chart

iShares S&P-TSX Completion Index ETF (TSE:XMD.TO) Seasonal Chart

SPDR S&P Emerging Markets Dividend ETF (NYSE:EDIV) Seasonal Chart

First Trust Developed Markets ex-US AlphaDEX Fund (NASD:FDT) Seasonal Chart

First Trust Materials AlphaDEX Fund (NYSE:FXZ) Seasonal Chart

ETFS Physical Palladium Shares (NYSE:PALL) Seasonal Chart

First Trust NASDAQ-100 Ex-Technology Sector Index Fund (NASD:QQXT) Seasonal Chart

SPDR Russell 1000 ETF (AMEX:SPLG) Seasonal Chart

iShares Global Timber & Forestry ETF (NASD:WOOD) Seasonal Chart

Hecla Mining Co. (NYSE:HL) Seasonal Chart

Northland Power Inc. (TSE:NPI.TO) Seasonal Chart

Becton Dickinson and Co. (NYSE:BDX) Seasonal Chart

First Trust-Aberdeen Global Opportunity Income Fund (NYSE:FAM) Seasonal Chart

First Trust Dorsey Wright Focus 5 ETF (NASD:FV) Seasonal Chart

 

 

The Markets

Stocks dipped on Thursday as the rising number of coronavirus cases in the US and around the globe had investors leaning back towards some of the stay-at-home trades that had been sold off at the start of the week.  The S&P 500 Index shed one percent, continuing to place pressure on previous trading range resistance, now support, above 3500.  Momentum indicators are showing the characteristics of the flat trend that the benchmark finds itself within.  MACD and RSI are gyrating around their middle-lines, seemingly unable to get to the overbought or oversold zone that are typical of bullish and bearish trends.

A day delayed due to Veterans Day in the US, the Energy Information Administration (EIA) released its tally of petroleum stockpiles on Thursday.  The EIA reported that oil inventories increased by 8.3 million barrels last week, which was a divergence compared to the 913,000 barrel drawdown that was expected by analysts.  Gasoline stockpiles, meanwhile, declined by 2.3 million barrels.  The result saw the days of supply of oil tick higher by four-tenths of a day to 36.6, while gasoline days of supply ticked lower by four-tenths to 26.6.  The average days of supply for each at this point in October is 23.0 and 23.3, respectively.  We sent out further insight to subscribers intraday.  Subscribe now to read more of our fundamental view of oil and how to trade it.

On the economic front, a report on consumer prices in the US was released before Thursday’s opening bell.  The headline print indicated that the consumer price index (CPI) was unchanged (0.0%) in October, missing the consensus analyst estimate that called for an increase of 0.2%.  The year-over-year increase now sits at 1.2%, down from the 1.4% increase recorded previous.  Stripping out the seasonal adjustments, the change in consumer prices in the month was consistent with the headline print, showing no change in the period.  The result is inline with the average change for this time of year.  The year-to-date change now sits at 1.3%, still around half of the 2.6% increase that is average through the first ten months of the year.  Subscribers can login to the database to view all of the seasonal charts for this report at https://charts.equityclock.com/u-s-consumer-price-index-cpi-producer-price-index-ppi

Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.93.  The gauge closed overly bearish at 1.02 in the prior day’s session.  Institutional sentiment, as gauged by the Dark Index, a measure of dark pool buying activity, surged amidst Thursday’s selloff to 44.9%.  This is the highest level since the start of August.  The level is just shy of the 45% hurdle that has historically provided the dividing line to indicate buying demand.  This is an encouraging result and suggests that buying demand amongst institutions is growing, supportive of the intermediate rising trend of stocks.

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

TSE Composite

Sponsored By...