Equity Clock

Stock Market Outlook for February 3, 2021

Despite the bubble having popped in some of these speculative names, the objective technical view remains that of higher-highs and higher-lows.

 

 

 

*** 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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Factset Research Sys, Inc. (NYSE:FDS) Seasonal Chart

Rent-A-Center, Inc. (NASD:RCII) Seasonal Chart

ICU Medical, Inc. (NASD:ICUI) Seasonal Chart

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

Entegris, Inc. (NASD:ENTG) Seasonal Chart

Points Intl Ltd. (TSE:PTS.TO) Seasonal Chart

2U, Inc. (NASD:TWOU) Seasonal Chart

 

 

The Markets

Stocks continued to rebound on Tuesday following last week’s selloff as the speculation in a few select areas of the market alleviated.  The S&P 500 Index jumped by 1.39%, led by core cyclical bets in the financial, industrial, and consumer discretionary sectors.  The large-cap benchmark continued its snap-back after testing intermediate support at its rising 50-day moving average at the end of last week, a level that, thus far, has enticed investors to buy the dip.  Previously broken short-term support at the rising 20-day has been retaken and now the downside gap that was opened last Wednesday around 3840 is being tested.  Momentum indicators on this daily look continue to show characteristics of a bullish trend with MACD and RSI holding predominantly above their middle lines.

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

• Further discussion pertaining to the snap-back in stocks and how we are playing it
• One of the favoured areas of the market that is showing an incredibly enticing setup during its period of seasonal strength
• Discussion on the burst of the bubble in some of the highly speculative names that had ballooned in value into the end of January

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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

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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.78.

 

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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