Equity Clock

Stock Market Outlook for March 8, 2021

All of this strength in the manufacturing economy has been a significant benefit to the price of Copper, which has doubled since the lows charted last March.

 

 

 

*** 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.

Shoe Carnival, Inc. (NASD:SCVL) Seasonal Chart

Escalade, Inc. (NASD:ESCA) Seasonal Chart

TransAct Technologies, Inc. (NASD:TACT) Seasonal Chart

Evolent Health, Inc. (NYSE:EVH) Seasonal Chart

H. B. Fuller Co. (NYSE:FUL) Seasonal Chart

Weis Markets, Inc. (NYSE:WMK) Seasonal Chart

United-Guardian, Inc. (NASD:UG) Seasonal Chart

Matador Resources Co. (NYSE:MTDR) Seasonal Chart

Western Asset Investment Grade Defined Opportunity Trust Inc. (NYSE:IGI) Seasonal Chart

ProShares Short VIX Short-Term Futures ETF (NYSE:SVXY) Seasonal Chart

 

 

The Markets

Stocks jumped on Friday following a much stronger than expected payroll report for February.  The Bureau of Labor Statistics indicates that 379,000 payrolls were added last month, which was more than double the consensus analyst estimate that called for a rise of 175,000.  The unemployment rate ticked down to 6.2% from 6.3% previous, continuing to be representative of levels that are typical coming out of an economic recession.  Average hourly earnings, meanwhile, increased by 0.2%, which was inline with forecasts.  Stripping out the seasonal adjustments, payrolls actually increased by 978,000, or 0.7%, in February, which is stronger than the 0.5% increase that is the norm for the second month of the year.  Combined with an upwardly revised print for January, the year-to-date change has adopted an above average pace through the first two months of the year, down by 1.2%.  The average change through the end of February is a decline of 1.6%.  We sent out further insight to subscribers intraday.  Subscribe now.

The S&P 500 Index jumped by almost 2% on Friday, retaking levels back above the 50-day moving average.  Momentum indicators continue to point lower following recent sell signals and indications of waning buying demand.  Potential resistance at the 20-day moving average is now a hurdle to watch.  That level comes in around 3880, a level that, if the benchmark reacts negatively to, would confirm a short-term shift in the trajectory from positive to negative.  The decline in the 20-day moving average in the last two days of the week is already leaning to this conclusion.  As has been emphasized, levels down to 3550 remain fair game, particularly through the end of March as portfolios are rebalanced ahead of the end of quarter.

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

• Weekly look at the S&P 500 Index and the level of support that is being maintained
• US International Trade
• Canadian International Trade and what is behind the unexpected surplus for January
• Copper, the level to accumulate, and when to fade the move

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Sentiment on Friday, as gauged by the put-call ratio, ended close to neutral at 0.95.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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