Equity Clock

Stock Market Outlook for February 23, 2021

Technology stocks down, but not out.

 

 

*** 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.

Crew Energy Inc. (TSE:CR.TO) Seasonal Chart

Old Republic Intl Corp. (NYSE:ORI) Seasonal Chart

Plantronics, Inc. (NYSE:PLT) Seasonal Chart

The Children’s Place, Inc. (NASD:PLCE) Seasonal Chart

American Homes 4 Rent (NYSE:AMH) Seasonal Chart

Nomad Foods Limited (NYSE:NOMD) Seasonal Chart

Invesco 1-5 Year Laddered Investment Grade Corporate Bond Index ETF (TSE:PSB.TO) Seasonal Chart

SPDR Barclays Issuer Scored Corporate Bond ETF (NYSE:SPBO) Seasonal Chart

 

 

The Markets

Stocks traded mixed on Monday as the battle over economic re-opening plays came head-to-head with plays exposed to the sharp rise in interest rates.  The S&P 500 Index shed over three-quarters of one percent, trading back to levels around the rising 20-day moving average.  Intermediate support remains solid at the rising 50-day moving average and the 20-day moving average is providing a level for traders to shoot off of.  After showing signs of rolling over through the past few sessions, MACD has triggered a bearish crossover with its signal line, typically an indication to sell.  The momentum indicator has been negatively diverging from price for months, indicative of waning buying demand at these market heights.  The benchmark has remained resilient over the intermediate-term, however, despite the enthusiasm of the investor base fading.  Being more selective in sector allocations has become prudent as the divide between the performance of the winners and losers starts to grow.

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 notable changes in this week’s chart books
• The state of the technology sector seasonally, technically, and fundamentally and how to position over the next couple of months
• All of the stocks that have gained 100% of the time in the month of March

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

With the new month days away and as we busily prepare our monthly outlook for March, we thought we would release our screen of all of the stocks that have gained in every March over their trading history, similar to what we provided last month.  While we at Equity Clock focus on a three-pronged approach (seasonal, technical, and fundamental analysis) to gain exposure to areas of the market that typically perform well over intermediate (2 to 6 months) timeframes, we know that stocks that have a 100% frequency of success for a particular month is generally of interest to those pursuing a seasonal investment strategy.  Below are the results for March:

*Note: None of the results highlighted above have the 20 years of data that we like to see in order to accurately gauge the the annual recurring, seasonal influences impacting an investment, therefore the reliability of the results should be questioned.  We present the above list as an example of how our downloadable spreadsheet can be filtered.

In January, we announced that we had added the monthly average returns and monthly frequency of gains for each investment in our downloadable spreadsheet that is available to yearly subscribers (if you are a monthly subscriber and have been with us for over a year, feel free to reach out to us to request a copy).  The inclusion of this data allows for more detailed data mining all from the convenience from a filterable spreadsheet.  The possibilities are endless.  Filter the results down to all the stocks in the market with at least 20 years of data that have gained in at least 80% of Marchs, find all of the stocks that show an optimal holding period that begins in March with strong average returns in April and May, or drill down to all of the stocks that correlate strongly with the period of seasonal strength for the sector in which it is categorized.  We will include the results of some filters that our audience may find of interest in our regular reports.  Annual subscribers can login and download this spreadsheet in the “Download” section of the chart database at https://charts.equityclock.com/.  **Note: The password to decrypt the spreadsheet has been updated and is provided on the download page.

Not subscribed yet?  Visit the following link and signup to the yearly subscription option and you can download the spreadsheet too: https://charts.equityclock.com/subscribe

Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.66.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

TSE Composite

Sponsored By...