Equity Clock

Stock Market Outlook for January 22, 2021

TSX Composite struggling around resistance at the 52-week high, despite positive seasonal tendencies that typically add strength to the benchmark through the first two months of the 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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Air Products and Chemicals, Inc. (NYSE:APD) Seasonal Chart

Cummins Inc. (NYSE:CMI) Seasonal Chart

PG&E Corp. (NYSE:PCG) Seasonal Chart

Lululemon Athletica Inc. (NASD:LULU) Seasonal Chart

Edgewell Personal Care Co. (NYSE:EPC) Seasonal Chart

Archrock, Inc (NYSE:AROC) Seasonal Chart

Mueller Industries Inc. (NYSE:MLI) Seasonal Chart

Natural Health Trends Corp. (NASD:NHTC) Seasonal Chart

Tutor Perini Corp. (NYSE:TPC) Seasonal Chart

Peoples Bancorp, Inc. (NASD:PEBO) Seasonal Chart

iShares MSCI BRIC ETF (NYSE:BKF) Seasonal Chart

Invesco DB Energy Fund (NYSE:DBE) Seasonal Chart

WisdomTree Emerging Markets Local Debt Fund (NYSE:ELD) Seasonal Chart

iShares MSCI Philippines ETF (NYSE:EPHE) Seasonal Chart

First Trust Dow Jones Internet Index Fund (NYSE:FDN) Seasonal Chart

KraneShares Zacks New China ETF (AMEX:KFYP) Seasonal Chart

Flowserve Corp. (NYSE:FLS) Seasonal Chart

Bancolombia SA (NYSE:CIB) Seasonal Chart

VFCorp (NYSE:VFC) Seasonal Chart

BP Amoco PLC (NYSE:BP) Seasonal Chart

Stella-Jones, Inc. (TSE:SJ.TO) Seasonal Chart

Central Garden & Pet Co. (NASD:CENTA) Seasonal Chart

Tapestry, Inc. (NYSE:TPR) Seasonal Chart

Invesco Russell MidCap Equal Weight ETF (AMEX:XMHQ) Seasonal Chart

 

 

The Markets

Stocks closed mixed on Thursday as investors booked profits in some of the recent high-flying pro-cyclical bets and continued to rotate back to technology.  The S&P 500 Index closed effectively unchanged, continuing to hold on to record high territory following Wednesday’s surge in the technology sector.  Support remains apparent at the rising 20-day moving average, while intermediate downside risks remain to the rising 50-day moving average at 3688.  A negative momentum divergence with respect to MACD remains intact, indicative of waning buying demand.

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

• The limits of the S&P 500 Index over the short-term
• Weekly Jobless Claims and what it means for the economic recovery
• US Housing Starts and how to play the fundamental trends
• Manufacturer sentiment and what it means for the stocks exposed to this segment of the economy

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On the economic front, a report on housing starts in the US was released before Thursday’s opening bell.  The headline print of December’s Housing Starts report indicated that activity increased by 5.8% last month to a seasonally adjusted annualized rate of 1.669 million.  Analysts were expecting that starts would decline by 1.3% to 1.558 million.  Stripping out the adjustments, starts actually declined by 5.7% in December, which is much stronger than the 11.5% decline that is average for this time of year.  For the year, overall, housing starts rose by 4.6%, which is firmly stronger than the unchanged result that has been the norm over the past two decades.  We sent out further insight to subscribers intraday.  Subscribe now.

Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.74.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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