Equity Clock

Stock Market Outlook for February 26, 2021

While the S&P 500 Index tests intermediate support at the rising 50-day moving average, levels back down to previous horizontal resistance at 3550 remain fair game.

 

 

 

*** 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.

American Fncl Group, Inc. (NYSE:AFG) Seasonal Chart

Willis Towers Watson Public Ltd. Co. (NASD:WLTW) Seasonal Chart

Core Mark Holding Co., Inc. (NASD:CORE) Seasonal Chart

Clearway Energy, Inc. (NYSE:CWEN) Seasonal Chart

Vanguard Communication Services ETF (NYSE:VOX) Seasonal Chart

Pepsico, Inc. (NASD:PEP) Seasonal Chart

Republic Services, Inc. (NYSE:RSG) Seasonal Chart

DISH Network Corp. (NASD:DISH) Seasonal Chart

 

 

The Markets

Stocks dipped on Thursday as investors became concerned by the rapid rise in the cost of borrowing.  The S&P 500 Index shed 2.45%, trading back down to its rising 50-day moving average.  Rising trend-channel support has been violated.  The real test of the resiliency of the bulls may be directly ahead as they stand their ground at this intermediate hurdle.  Levels back down to previous horizontal resistance at 3550 are still fair game in order to wash out euphoric sentiment and reinvigorate buying demand, which has been waning in recent weeks.  While we had been seeking weakness/consolidation in stocks beyond the first week of the year through the end of February, the fact that the benchmark is back to the level it closed at on January 8th suggests that the call was not far off.  The call was to use weakness through the end of February to load up on favourable bets to hold through the spring.  While the market has indeed gone nowhere through the average period of weakness, we feel that further consolidation/weakness is still a possibility through the month ahead, particularly if the bulls fail to hold support at the 50-day.  Portfolios that are excessively long stocks and underweight bonds may be forced to rebalance ahead of the end of the quarter, making the relationship between bonds and stocks an important one to watch through the month ahead.

To be released…

Our 90-page monthly report for March is ready for distribution.  This timely report highlighting how you should position in the month ahead will be emailed to subscribers on Friday.  Lookout for this report in your inbox.

Not subscribed yet?  Signup now to be included on all of our distributions and to access all of our research/insights on seasonal investing.

 

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

• Weekly Jobless Claims
• Natural gas inventories and how things are shaping up heading into the period of seasonal strength for the commodity
• US Durable Goods Orders and one of the highlights that hints of an opportunity to keep on your radar as we head into the spring

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

Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.80

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...