Equity Clock

Stock Market Outlook for January 6, 2021

Relative performance of the Emerging Market ETF breaking out of a significant bottoming pattern as investors rotate away from domestic equities.

 

 

 

*** 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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Skechers Usa, Inc. (NYSE:SKX) Seasonal Chart

Wendy’s Co. (NASD:WEN) Seasonal Chart

Ironwood Pharmaceuticals Inc. (NASD:IRWD) Seasonal Chart

Capri Holdings Ltd. (NYSE:CPRI) Seasonal Chart

Catalent, Inc. (NYSE:CTLT) Seasonal Chart

Vanguard Small-Cap Growth ETF (NYSE:VBK) Seasonal Chart

Invesco S&P 500 ex-Rate Sensitive Low Volatility ETF (AMEX:XRLV) Seasonal Chart

Osisko Metals Inc. (TSXV:OM.V) Seasonal Chart

 

 

The Markets

Stocks snapped-back following Monday’s selloff as news that Saudi Arabia will unexpectedly cut its production of oil pushed investors into cyclical assets, primarily energy.  The S&P 500 Index gained just over seven-tenths of one percent, retaking levels above the rising 20-day moving average.  The benchmark closed around the mid-point to the previous day’s range, suggesting that, while the bear case for the market has been taken off the table for now, investors are remaining indecisive ahead of some important events in the days ahead.  Catalysts to drive stocks through the rest of the week include the results of the Georgia senate race runoff, the certification of election results by congress on Wednesday, and the always important monthly payroll report on Friday.

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

• The pivotal point on the hourly chart of the S&P 500 Index that may be a make-or-break point for the intermediate path of the benchmark
• The outperformance in risk-on areas of the market
• Emerging Markets
• Commodities
• Oil Exploration and Production Industry

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Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

• Currencies
• Cryptocurrencies
• Commodities
• Major Benchmarks
• Sub-sectors / Industries

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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.73.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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