Equity Clock

Stock Market Outlook for February 2, 2021

Silver ETF, a core holding within our model portfolio, has broken above resistance at $26.75 to an all-time high.

 

 

 

*** 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.

Baytex Energy Corp. (TSE:BTE.TO) Seasonal Chart

GlaxoSmithKline plc (NYSE:GSK) Seasonal Chart

Iridium Communications Inc. (NASD:IRDM) Seasonal Chart

 

 

The Markets

Happy Groundhog Day!  Stocks snapped-back following last week’s selloff as the typical start-of-the-month positivity had its way with market performance.  The S&P 500 Index added 1.61%, bouncing firmly from support around its rising 50-day moving average.  Previous broken short-term support, now short-term resistance, at the rising 20-day moving average was tested around the highs of the session.  Momentum indicators continue to show characteristics of a bullish trend with MACD and RSI still holding predominantly above their middle lines.  Should intermediate support at the 50-day fail to support the recent pullback, we can look towards downside risks to previous horizontal resistance around 3550.

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

• A look at how to play the short-term trend of lower-lows and lower-highs for the large-cap benchmark and what a 5% to 10% decline would look like
• Gold and what level it is safe to hold long
• Gold miners
• US Construction spending and how to play the fundamental trend

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

On the economic front, a report on construction spending in the US was released during the Monday session.  The headline print of December’s report indicates that activity increased by 1.0%, which was marginally stronger than the consensus estimate that called for a 0.8% rise.  The year-over-year change now sits at +5.7%.  Stripping out the seasonal adjustments, construction spending in the US actually declined by 9.7% in December, which is inline with the 9.6% decline that is average for this time of year.  For the year overall, construction spending in the US was higher by 6.0%, which is almost double the 3.3% calendar-year increase that has been the norm over the past two decades.  We sent out further insight to subscribers intraday, including the opportunities to take advantage of.  Subscribe now.

Just Released…

Our 99-page monthly report for February has been distributed to subscribers providing insight on how to position for the month(s) ahead.

Highlights in the report include:

• Equity market tendencies in the month of February
• Investor Sentiment
• Bubbles and signs of excess in the market
• How economic data is comparing to forecasts
• Jump in yield spreads and how to benefit
• Treasury Bonds and when to play
• The decline in high yield spreads
• Market Volatility
• Gold and Silver
• US and Canadian dollars and where they are headed
• Emerging markets
• Commodities
• Tracking the spread of the coronavirus
• The seasonal rise in jobless claims and what it says about the labor market
• The technical status of the S&P 500 Index
• Equity market breadth and what it has to say about the sustainability of the market strength
• The change of industry ratings
• Positioning for the months ahead
• Sector reviews and ratings
• Stocks that have frequently gained in the month of February
• Notable stocks and ETFs entering their period of strength in February

Subscribe now and we’ll send this report directly to your inbox or download immediately within our report archive.

Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.77.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...