Equity Clock

Stock Market Outlook for December 31, 2020

Fresh multi-year lows in the US Dollar continuing to support many of those seasonal trades that flourish at this time of year.

 

 

 

*** 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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Invesco S&P MidCap 400 Pure Value ETF (NYSE:RFV) Seasonal Chart

Northrop Grumman Corp. (NYSE:NOC) Seasonal Chart

Semtech Corp. (NASD:SMTC) Seasonal Chart

Ruths Chris Steak House Inc. (NASD:RUTH) Seasonal Chart

Genetic Technologies Ltd. (NASD:GENE) Seasonal Chart

BMO China Equity Index ETF (TSE:ZCH.TO) Seasonal Chart

Invesco DB Silver Fund (NYSE:DBS) Seasonal Chart

Invesco KBW High Dividend Yield Financial ETF (NASD:KBWD) Seasonal Chart

VanEck Vectors Semiconductor ETF (NYSE:SMH) Seasonal Chart

Premier Financial Corp. (NASD:PFC) Seasonal Chart

Absolute Software Corp. (TSE:ABST.TO) Seasonal Chart

Constellation Software Inc. (TSE:CSU.TO) Seasonal Chart

Helen of Troy Ltd. (NASD:HELE) Seasonal Chart

Watsco, Inc. (NYSE:WSO) Seasonal Chart

Zynga Inc. (NASD:ZNGA) Seasonal Chart

FireEye Inc. (NASD:FEYE) Seasonal Chart

Vanguard Russell 1000 ETF (NASD:VONE) Seasonal Chart

 

 

The Markets

Stocks closed mildly higher in the second to last trading day of the year as the positivity that surrounds the Christmas holiday helps to keep stocks afloat.  The S&P 500 Index gained just over a tenth of one percent, remaining above the gap that was opened during Monday’s session just above 3700.  Short-term support remains solid around the rising 20-day moving average, while intermediate downside risks are to the rising 50-day moving average at 3579.  The breakout from the 300-point range between 3200 and 3500 projects an upside target of 3800, which remains less than 2% overhead.  While the last session of the year typically has a slightly negative bias as portfolio managers conduct their final trades for the year, the start of the new year is frequently positive, giving more opportunities for our upside target  to be achieved in the short-term.

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

• Hourly look at the S&P 500 Index
• The US Dollar and dollar beneficiaries
• The Citigroup Economic Surprise Index
• The price of oil and energy market fundamentals
• US Trade Deficit and the activity that is driving the headline result

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.81.

 

 

 

 

Seasonal charts of companies reporting earnings today:

• No significant earrings schedule for today

 

S&P 500 Index

 

 

TSE Composite

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