Equity Clock

Stock Market Outlook for January 20, 2021

Despite the risk-on session on Tuesday, recent action in the market points to signs of risk aversion.

 

 

 

*** 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.

ProShares Ultra Bloomberg Crude Oil (NYSE:UCO) Seasonal Chart

Aston Bay Holdings Ltd. (TSXV:BAY.V) Seasonal Chart

Cincinnati Financial Corp. (NASD:CINF) Seasonal Chart

EQT Corp. (NYSE:EQT) Seasonal Chart

ARC Resources Ltd. (TSE:ARX.TO) Seasonal Chart

Compass Minerals Intl, Inc. (NYSE:CMP) Seasonal Chart

Wells Fargo & Co. (NYSE:WFC) Seasonal Chart

Kilroy Realty Corp. (NYSE:KRC) Seasonal Chart

Harsco Corp. (NYSE:HSC) Seasonal Chart

Zumiez Inc. (NASD:ZUMZ) Seasonal Chart

Radiant Logistics Inc. (AMEX:RLGT) Seasonal Chart

Canadian Natural Resources (NYSE:CNQ) Seasonal Chart

United States Brent Oil Fund (NYSE:BNO) Seasonal Chart

Invesco DB Oil Fund (NYSE:DBO) Seasonal Chart

SPDR S&P Bank ETF (NYSE:KBE) Seasonal Chart

 

 

The Markets

Stocks jumped on Tuesday as investors rotated back to risk following comments from Janet Yellen urging lawmakers for another large economic stimulus bill.  The S&P 500 Index gained just over eight-tenths of one percent, retouching our forecasted target of 3800 at the high of the session.  Support remains readily apparent at the rising 20-day moving average, a variable hurdle that was tested at the lows of Friday’s session.  Intermediate downside risks remain to the rising 50-day moving day average around 3675.  Momentum indicators continue to negatively diverge from price, an indication of waning buying demand.  Energy, technology, and communication services topped the leaderboard, while consumer staples, utilities, and REITs, the core defensive bets, closed in the red in what was clearly a risk-on session.

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

Subscribe now.

 

Today, in our market outlook to subscribers, we discuss the following:

• The next sector rotation on our radar
• Treasury Bonds
• Canadian Manufacturing Sales
• Seasonal trade that has consolidated for months and now appears poised to breakout

Subscribe now and we’ll send this outlook to you.

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

Sponsored By...