Equity Clock

Stock Market Outlook for January 14, 2021

So far, a fairly normal start to the year for the change in petroleum inventories, but we continue to wait for the trends to evolve.

 

 

 

*** 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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Black Diamond Group Ltd. (TSE:BDI.TO) Seasonal Chart

Occidental Petroleum Corp. (NYSE:OXY) Seasonal Chart

O’Reilly Automotive, Inc. (NASD:ORLY) Seasonal Chart

Pioneer Natural Resources Co. (NYSE:PXD) Seasonal Chart

Saputo Group, Inc. (TSE:SAP.TO) Seasonal Chart

Great-West Lifeco, Inc. (TSE:GWO.TO) Seasonal Chart

Genesco, Inc. (NYSE:GCO) Seasonal Chart

Inter Parfums, Inc. (NASD:IPAR) Seasonal Chart

Rex American Resources Corp. (NYSE:REX) Seasonal Chart

British American Tobacco PLC (NYSE:BTI) Seasonal Chart

Canadian General Investments, Ltd. (TSE:CGI.TO) Seasonal Chart

Enbridge, Inc. (NYSE:ENB) Seasonal Chart

Keurig Dr Pepper Inc. (NYSE:KDP) Seasonal Chart

Wheaton Precious Metals Corp. (TSE:WPM.TO) Seasonal Chart

Shopify, Inc. (NYSE:SHOP) Seasonal Chart

Invesco S&P 500 Equal Weight Consumer Staples ETF (NYSE:RHS) Seasonal Chart

Invesco S&P 500 Quality ETF (AMEX:SPHQ) Seasonal Chart

 

 

The Markets

Stocks were generally mixed on Wednesday as investors monitored the developments surrounding the Trump impeachment vote.  The S&P 500 Index closed higher by just less than a quarter of one percent, remaining stuck to levels around our forecasted target of 3800.  Investors are showing that this is a significant level for the benchmark given the stagnant performance that has materialized since achieving this milestone.  Short-term support remains apparent at the rising 20-day moving average at 3738, while intermediate-term risks remain to the rising 50-day moving average at 3650.

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

• A look at the fundamental state of the energy sector
• Analysis of the price of oil and the hurdle overhead that may cap the recent advance
• The Energy Sector ETF
• Yield Spreads
• Bank stocks
• Treasury Bonds
• Consumer Price Index for December

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On the economic front, a report on consumer prices for December was released before Wednesday’s opening bell.  The headline print indicated that the Consumer Price Index (CPI) increased by 0.4% in December, which was inline with the consensus analyst estimate.  The year-over-year increase now sits at 1.4%, up from the 1.2% reported previous.  Excluding food and energy, the change in prices for the month was more subdued with a rise of 0.1% in December, placing the year-over-year year increase at 1.6%.  Stripping out the seasonal adjustments, consumer prices actually increased by 0.1% in this last month of 2020, positively diverging fro the seasonal norm that calls for a decline of 0.2%.  For the year overall, consumer prices were higher by 1.4%, which is well below the 2.2% increase that is average for the year.  This is the weakest calendar year increase since 2015 amidst a manufacturing recession.  We sent out further insight to subscribers.  Subscribe now.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.85.

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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