Equity Clock

Stock Market Outlook for November 27, 2020

Durable goods orders showing a stellar pace year-to-date as the pandemic creates unprecedented demand for technology and motor vehicles.

 

 

 

*** 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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Ur-Energy, Inc. (TSE:URE.TO) Seasonal Chart

Exco Technologies Ltd. (TSE:XTC.TO) Seasonal Chart

Novo Nordisk A S (NYSE:NVO) Seasonal Chart

Aecon Group Inc. (TSE:ARE.TO) Seasonal Chart

Rio Tinto PLC (NYSE:RIO) Seasonal Chart

Sherritt Intl Corp. (TSE:S.TO) Seasonal Chart

Trican Well Service Ltd. (TSE:TCW.TO) Seasonal Chart

Macerich Co. (NYSE:MAC) Seasonal Chart

Celanese Corp. (NYSE:CE) Seasonal Chart

iShares MSCI Switzerland Capped ETF (NYSE:EWL) Seasonal Chart

iShares S&P/TSX Capped Energy Index ETF (TSE:XEG.to) Seasonal Chart

B2Gold Corp. (TSE:BTO.TO) Seasonal Chart

Concho Resources Inc. (NYSE:CXO) Seasonal Chart

Central Garden & Pet Co. (NASD:CENTA) Seasonal Chart

Continental Resources Inc. (NYSE:CLR) Seasonal Chart

iShares S&P-TSX Global Base Metals Index ETF (TSE:XBM.TO) Seasonal Chart

VelocityShares 3x Inverse Natural Gas ETN (AMEX:DGAZ) Seasonal Chart

iShares MSCI United Kingdom Small-Cap ETF (AMEX:EWUS) Seasonal Chart

SPDR S&P Emerging Markets Small Cap ETF (NYSE:EWX) Seasonal Chart

VanEck Vectors Steel ETF (NYSE:SLX) Seasonal Chart

 

 

The Markets

** Note: There will be no report for Thursday given the Thanksgiving holiday market closure in the US.**

Stocks closed mildly lower on Wednesday as investors digested the gains from the past couple of sessions.  The S&P 500 Index closed down by less than two-tenths of one percent, remaining within arm’s reach of the all-time closing high charted in the previous session at 3635.  The hot sectors from previous sessions, such as energy, industrials, financials, and materials, were culprit to the slight pullback on the day, while former market darling, technology, caught a bid.  The prevailing trends continue to point to a favourable path for the former cyclical bets as investors look to the light at the end of the tunnel to this coronavirus pandemic.  Previous trend channel resistance at 3550 is in a position of support, providing a propping point to the upside target of the breakout of the 300-point span to 3800.  Seasonally, positive tendencies for stocks persist into the start o December, after which another period of softness begins as portfolio managers execute their final tax-loss selling trades.  We break out all of the tendencies for the month of December that you need to be aware of in our soon to be released monthly outlook.  Subscribe now to be included on our distribution list to receive this timely insight providing guidance on how to position for the month(s) ahead.

On schedule for the Wednesday session, the Energy Information Administration (EIA) released its tally of petroleum inventories for the week just past.  The EIA indicated that oil inventories declined by 754,000 last week, while gasoline stockpiles expanded by 2.2 million barrels.  The result caused the days of supply of oil to fall by six-tenths of a day to 35.5, while gasoline days of supply expanded by six-tenths of a day to 27.5.  The average days of supply for each by the third week in November is 23.0 and 23.3, respectively.  We reveal levels to look out for and how to allocate in the energy sector in our subscriber exclusive market outlook, delivered nightly via email.  Subscribe now.

On the economic front, a report on Durable Goods Orders in the US was released before Wednesday’s opening bell.  The headline print of October’s Durable Goods Orders report indicated that new orders in the US increased by 1.3% last month, which was much stronger than the consensus analyst estimate that called for an increase of 0.9%.  Core capital goods orders, meanwhile, were similarly upbeat, showing an increase of 0.7%, which was a tenth of a percent stronger than the 0.6% analyst forecast.  Stripping out the seasonal adjustments, the value of manufacturers’ new orders for durable goods industries actually declined by 1.8% in October, which is stronger than the 3.8% decline that is average for this time of year.  Year-to-date, durable goods orders are essentially unchanged on the year, which is stronger than the 1.7% decline that is average through the first ten months.   We sent out further insight to subscribers intraday.  Subscribe now.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.72.  As for our gauge of institutional sentiment, the dark index, which measures dark pool activity, ticked higher from 38.1% on Tuesday to 41.3% on Wednesday.  Typically, levels 45% or higher indicate buying demand.

 

 

 

Seasonal charts of companies reporting earnings today:

• No significant earnings reports scheduled

 

S&P 500 Index

 

 

TSE Composite

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