Equity Clock

Stock Market Outlook for January 13, 2021

Despite increased pandemic restrictions, the change in job openings in November was actually stronger than 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.

Brown-Forman Corp. – Class B (NYSE:BF/B) Seasonal Chart

Cabot Oil & Gas Corp. (NYSE:COG) Seasonal Chart

Equifax, Inc. (NYSE:EFX) Seasonal Chart

Canadian Natural Resources Ltd. (TSE:CNQ.TO) Seasonal Chart

Kirby Corp. (NYSE:KEX) Seasonal Chart

Monolithic Power Systems, Inc. (NASD:MPWR) Seasonal Chart

Sanderson Farms, Inc. (NASD:SAFM) Seasonal Chart

Independence Holding Co. (NYSE:IHC) Seasonal Chart

FlexShares Quality Dividend Defensive Index Fund (AMEX:QDEF) Seasonal Chart

 

 

The Markets

Stocks closed mildly higher on Tuesday, retaking our forecasted target of 3800 as markets enter a glide path ahead of the start of earnings season on Friday.  The S&P 500 Index added a mere four basis points (0.04%), maintaining levels above rising short-term support at the 20-day moving average.  Momentum indicators are showing indications of rolling over just below overbought territory, at least according to the Relative Strength Index, although all momentum indicators are showing characteristics of a bullish trend.

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

• Hourly look at the large cap index and levels to trade
• Value versus Growth and the opportunity
• Support for the Volatility Index (VIX)
• How we are mitigating volatility in portfolios over the near-term
• Job Openings and Labor Turnover

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On the economic front, we received insight as to the number of job opportunities that existed through the month of November.  The headline print of the Job Openings and Labor Turnover Survey (JOLTs) indicated that job openings declined by 1.6% to 6.527 million in November.  Just for context, as of November’s employment situation report, there were 10.7 million individuals that were declared unemployed, according to the Bureau of Labor Statistics, providing a ratio of unemployed to openings that is still close to 1.6 to 1.  Stripping out the seasonal adjustments, job openings actually declined by 10.7% in November, which is stronger than the 14.6% decline that is average for this time of year.  The year-to-date change through the first eleven months of the year is higher by 5.5%, which is still less than half of the 11.2% increase that is average through this point in the year.  We sent out further insight to subscribers intraday.  Subscribe now and we’ll send you our report.

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.69.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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