Equity Clock

Stock Market Outlook for December 17, 2020

Bitcoin has broken out. Seasonally, the price of the cryptocurrency peaks by the 18th of December, on average.

 

 

 

*** 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.

Silver Spruce Resources, Inc. (TSXV:SSE.V) Seasonal Chart

Marriott Intl Inc New (NASD:MAR) Seasonal Chart

Tenet Healthcare Corp. (NYSE:THC) Seasonal Chart

Papa Johns Intl, Inc. (NASD:PZZA) Seasonal Chart

Lundin Mining Corp. (TSE:LUN.TO) Seasonal Chart

Henry Schein, Inc. (NASD:HSIC) Seasonal Chart

Vishay Intertech, Inc. (NYSE:VSH) Seasonal Chart

Arbor Realty Trust Inc. (NYSE:ABR) Seasonal Chart

Advanced Semiconductor (NYSE:ASX) Seasonal Chart

Jacobs Engineering Group Inc. (NYSE:J) Seasonal Chart

Aberdeen Emerging Markets Equity Income Fund, Inc. (AMEX:AEF) Seasonal Chart

Invesco MSCI Global Timber ETF (NYSE:CUT) Seasonal Chart

iPath Bloomberg Commodity Index Total Return ETN (NYSE:DJP) Seasonal Chart

iShares MSCI Emerging Markets Asia ETF (NASD:EEMA) Seasonal Chart

Invesco Russell 1000 Equal Weight ETF (AMEX:EQAL) Seasonal Chart

iShares MSCI USA Equal Weighted ETF (NYSE:EUSA) Seasonal Chart

iShares MSCI Sweden ETF (NYSE:EWD) Seasonal Chart

ValueShares International Quantitative Value ETF (AMEX:IVAL) Seasonal Chart

KraneShares CSI China Internet ETF (AMEX:KWEB) Seasonal Chart

ProShares Global Listed Private Equity ETF (NYSE:PEX) Seasonal Chart

ProShares UltraShort 20+ Year Treasury (NYSE:TBT) Seasonal Chart

 

 

The Markets

Stocks closed mixed on Wednesday as the year-end portfolio rebalancing/tax-loss selling period continues.  The S&P 500 Index gained just less than two-tenths of one percent, supported by technology stocks as portfolio managers found the requirement to re-weight back towards growth.  The meagre return was just enough to push the large-cap benchmark back to the highs of the year just above 3700.  Short-term support remains apparent at the 20-day moving average, now at 3647.  Rising 20, 50, and 200-day moving averages suggest that the momentum of the market remains higher, lining up a path towards our upside target of 3800 by the start of next year.  The breakout of the 300-point range between 3200 and 3500 has led us to prognosticate this upside forecast.

Today, in our Market Outlook to subscribers, we discuss the following:

• Hourly look at the S&P 500 Index
• The state of oil and gas inventories and our stance in the energy sector
• The price of Oil
• US Retail Sales
• The Consumer Discretionary Sector
• Consumer Prices in Canada and what is driving the headline result
• Bitcoin

Subscribe now and we’ll send you this outlook.

On the economic front, a report on retail sales in the US was released before Wednesday’s opening bell.  The headline print indicated that retail trade dropped by 1.1% last month, which was significantly weaker than the 0.3% decline that was expected by analysts.  Less gas and autos, the decline was equally disappointing, falling by 0.8% versus the consensus analyst estimate that called for a rise of 0.2%.  Stripping out the adjustments, retail sales actually fell by 0.2% in November, which is a rare negative divergence compared to the 2.3% rise that is average for the second to last month of the year.  This is the first November decline in activity since 2008, amidst the Great Financial Crisis.  Year-to-date, the trend of retail sales in the US is now 5.9% above the seasonal average trend, which is the second best pace on record, lagging only last year’s performance that saw a 6.4% above average pace through this point in the year.  We sent out further insight to subscribers intraday, highlighting how to interpret the data and the impact on the equity market ahead.  Subscribe now.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.77.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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