Equity Clock

Stock Market Outlook for November 20, 2020

With the unseasonably warm weather in the past week, natural gas inventory injection season has been kept alive beyond its average peak.

 

 

 

*** 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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Advanced Micro Devices, Inc. (NASD:AMD) Seasonal Chart

United Rentals, Inc. (NYSE:URI) Seasonal Chart

Methanex Corp. (TSE:MX.TO) Seasonal Chart

Taseko Mines Ltd. (TSE:TKO.TO) Seasonal Chart

First Quantum Minerals Ltd. (TSE:FM.TO) Seasonal Chart

National Oilwell Varco, Inc. (NYSE:NOV) Seasonal Chart

Steel Dynamics, Inc. (NASD:STLD) Seasonal Chart

Fluor Corp. (NYSE:FLR) Seasonal Chart

Moody’s Corp. (NYSE:MCO) Seasonal Chart

Ross Stores, Inc. (NASD:ROST) Seasonal Chart

Copper Mountain Mining Corp. (TSE:CMMC.TO) Seasonal Chart

Continental Gold Ltd. (TSE:CNL.TO) Seasonal Chart

Teck Resources Ltd. (TSE:TECK/B.TO) Seasonal Chart

Titan Machinery Inc. (NASD:TITN) Seasonal Chart

CBRE Group, Inc. (NYSE:CBRE) Seasonal Chart

Eldorado Resorts, Inc. (NASD:ERI) Seasonal Chart

First Trust Technology AlphaDEX Fund (NYSE:FXL) Seasonal Chart

iShares Global Clean Energy ETF (NASD:ICLN) Seasonal Chart

Invesco Solar ETF (NYSE:TAN) Seasonal Chart

SPDR S&P Metals and Mining ETF (NYSE:XME) Seasonal Chart

iShares Dow Jones US Real Estate (NYSE:IYR) Seasonal Chart

Public Storage, Inc. (NYSE:PSA) Seasonal Chart

Boyd Gaming Corp. (NYSE:BYD) Seasonal Chart

iShares U.S. Home Construction ETF (NYSE:ITB) Seasonal Chart

Invesco S&P 500 Equal Weight Financials ETF (NYSE:RYF) Seasonal Chart

Invesco S&P 500 High Dividend Low Volatility ETF (AMEX:SPHD) Seasonal Chart

 

 

The Markets

Stocks returned to green on Thursday as investors reacted to headlines that Democrat and Republican leaders had agreed to resume negotiations on a new fiscal stimulus bill.  The S&P 500 Index closed higher by four-tenths of one percent, clawing back some of the prior day’s loss.  Support at previous trading range resistance around 3550 remains intact.  The breakout of the approximately 300-point trading range between 3200 and 3500 projects upside potential towards 3800, the realization of which could depend on the outcome of stimulus talks.  Momentum indicators on the daily chart are showing signs of rolling over as MACD once again converges on its signal line.  Seasonally, this period between the few days following the US election and the days ahead of the US Thanksgiving holiday tend to be a bit of a softer period for stocks, following which gains are the norm through to the start of December.  So far, the seasonal pattern during election years when the incumbent party loses the office of the president has been very reliable, so we will be watching with a keen eye to see if seasonal norms continue to hold true through the final weeks of the year.

On schedule for the Thursday session, the Energy Information Administration (EIA) released its tally of natural gas in storage for the past week.  The EIA indicated that inventories of natural gas increased by 31 bcf as the US Northeast was blanketed with unseasonably warm weather for this time of fall.  The prior week saw an increase of 8 bcf.  The back-to-back weekly additions have kept inventory injection season alive beyond its average peak, which is typically realized by the 9th of November.  

On the economic front, a report on existing home sales in the US was released during Thursday’s session.  The headline print of October’s report indicates that activity increased by 4.3% last month to a seasonally adjusted annualized rate of 6.85 million.  Analysts were expecting a decline of 1.5% to 6.47 million.  The year-over-year change sits higher by 26.6%.  Stripping out the seasonal adjustments, existing home sales actually increased by 1.8% in October versus the month prior, which is a positive divergence compared to the 0.8% decline that is average for this time of year.  The year-to-date change is now higher by 32.0%, which is the second best performance through the first ten months of the year that we have on record.  The average increase through the end of October is 7.7%.   We sent out further insight to subscribers intraday.  Subscribe now.

Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.76.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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