Equity Clock

Stock Market Outlook for February 24, 2021

The Volatility Index (VIX) continues to hold above the gap around 20 that was opened one year ago TODAY, but the pattern suggests a downside resolution may be due.

 

 

 

*** 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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Ecolab, Inc. (NYSE:ECL) Seasonal Chart

Bio-Rad Laboratories, Inc. (NYSE:BIO) Seasonal Chart

FTI Consulting, Inc. (NYSE:FCN) Seasonal Chart

Broadwind Energy, Inc. (NASD:BWEN) Seasonal Chart

McCoy Bros., Inc. (TSE:MCB.TO) Seasonal Chart

Linde plc (NYSE:LIN) Seasonal Chart

BlackRock Science and Technology Trust (NYSE:BST) Seasonal Chart

Deutsche X-trackers MSCI Eurozone Hedged Equity ETF (AMEX:DBEZ) Seasonal Chart

 

 

The Markets

Stocks closed mixed again on Tuesday as the battle between value and growth plays out in the market.  The S&P 500 Index closed higher by just over a tenth of one percent, reversing the losses recorded earlier in the session.  At the lows of the day, the benchmark checked back with levels around the rising 50-day moving average, once again emphasizing the level of intermediate support that the variable hurdle continues to provide.  The benchmark closed marginally above the rising 20-day moving average.  Despite the crack of the lower limit of its rising trend channel intraday, the benchmark managed to maintain the limits of the range on a closing basis.  Momentum indicators continue to show negative divergences compared to price, indicating waning buying demand at these record highs.  However, that hasn’t stopped the equity market from drawing in the next marginal buyer or investors looking to buy the dip.  The buy the dip mentality remains alive and well, something that was clearly apparent in the Tuesday session.

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

• The battle of Value over Growth and which one to favor
• The one-year anniversary of the gap higher on the VIX and what the fear-gauge is saying about the state of the market now
• US Home Prices and the influence that the value of the largest asset of most Americans has on risk-assets
• Shipping activity and what it has to say about the health of the economy

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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.76.

 

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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