Equity Clock

Stock Market Outlook for March 12, 2021

The warmer weather has us thinking about seasonal opportunities for the spring, including Natural Gas and REITs.

 

 

 

*** 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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ARC Resources Ltd. (TSE:ARX.TO) Seasonal Chart

NuVista Energy Ltd. (TSE:NVA.TO) Seasonal Chart

BMO S&P/TSX Equal Weight Oil & Gas Index ETF (TSE:ZEO.TO) Seasonal Chart

Pine Cliff Energy Ltd. (TSE:PNE.TO) Seasonal Chart

Avis Budget Group, Inc. (NASD:CAR) Seasonal Chart

Camden Property Trust (NYSE:CPT) Seasonal Chart

Vishay Intertech, Inc. (NYSE:VSH) Seasonal Chart

Dorman Products, Inc. (NASD:DORM) Seasonal Chart

ABB Ltd. (NYSE:ABB) Seasonal Chart

Crescent Point Energy Corp. (NYSE:CPG) Seasonal Chart

SPDR Solactive Canada ETF (AMEX:ZCAN) Seasonal Chart

United States Lime & Minerals, Inc. (NASD:USLM) Seasonal Chart

Peoples Financial Services Corp. (NASD:PFIS) Seasonal Chart

Installed Building Products Inc. (NYSE:IBP) Seasonal Chart

First Trust Natural Gas ETF (NYSE:FCG) Seasonal Chart

Invesco S&P SmallCap Energy ETF (NASD:PSCE) Seasonal Chart

Invesco DWA Energy Momentum ETF (NASD:PXI) Seasonal Chart

Invesco S&P 500 GARP ETF (AMEX:SPGP) Seasonal Chart

Empire Co. Ltd. (TSE:EMP/A.TO) Seasonal Chart

Murphy Oil Corp. Holding Co. (NYSE:MUR) Seasonal Chart

ProShares DJ Brookfield Global Infrastructure ETF (NYSE:TOLZ) Seasonal Chart

Shaw Communications, Inc. (NYSE:SJR) Seasonal Chart

Align Technology, Inc. (NASD:ALGN) Seasonal Chart

Invesco S&P Emerging Markets Momentum ETF (AMEX:EEMO) Seasonal Chart

WisdomTree Europe Quality Dividend Growth Fund (AMEX:EUDG) Seasonal Chart

SAP SE (NYSE:SAP) Seasonal Chart

Blackrock Utility and Infrastructure Trust (NYSE:BUI) Seasonal Chart

Deutsche X-trackers MSCI Europe Hedged Equity ETF (AMEX:DBEU) Seasonal Chart

WisdomTree Germany Hedged Equity Fund (NASD:DXGE) Seasonal Chart

ProShares MSCI EAFE Dividend Growers ETF (NYSE:EFAD) Seasonal Chart

Eaton Vance Tax Managed Global Diversified Equity Income Fund (NYSE:EXG) Seasonal Chart

First Trust United Kingdom AlphaDEX Fund (NASD:FKU) Seasonal Chart

Invesco KBW Premium Yield Equity REIT ETF (NASD:KBWY) Seasonal Chart

VanEck Vectors Russia Small Cap ETF (NYSE:RSXJ) Seasonal Chart

 

 

The Markets

Stocks continue to attract buying demand now that the $1.9 Trillion economic stimulus bill has been signed into law.  The S&P 500 Index tacked on another 1% in the Thursday session as the large-cap benchmark reached back towards record high-territory.  With a high on the day of 3,960, a new all-time high watermark for the benchmark has been recorded.  The benchmark is now back within its rising trend channel that was cracked just a few days ago and a MACD buy signal has been triggered.  So, what can we make of all of this?  After indications of waning buying demand and struggle around major moving averages, downside follow-through has yet to materialize, as was expressed as a threat in previous reports.  The downside risk on the benchmark can be pegged to previous horizontal resistance at 3550.  But while this washout of euphoric sentiment has yet to come to fruition, the problem for us is the mere issue of not being given the opportunity to ratchet up risk for the strength that is notorious in the equity market during the month of April.  In the Seasonal Advantage Portfolio that we manage in partnership with CastleMoore, we remain fully invested is stocks, an allocation shared by our model portfolio that we provide to subscribers at the end of our monthly report.  But while there is no room to buy, there is always room to rotate, particularly to some of the higher-bets segments of the market, such as energy and financials, which are now well above levels of support.  The desire remains to add/rotate to favoured positions on any weakness, but this remains difficult task to do while stocks continue to float freely.  The market remains in a period prone to mean-reversion through the end of the month, therefore we cannot discount suspected weakness over the next couple of weeks.  Obviously, holding out for our chance to ratchet up risk is proving to be unsuccessful.

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

• Weekly Jobless Claims
• Job Openings in the US and where the opportunities are
• Natural gas inventories and what they have to say about the prospect for the seasonal trade in the commodity ahead
• Real Estate Investment Trusts (REITs) and what the charts are saying

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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.74.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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