Equity Clock

Stock Market Outlook for March 22, 2021

New case counts of COVID-19 are starting to rise around the globe, which is concerning investors that had been betting on the reopening of the economy.

 

 

 

*** 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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SL Green Realty Corp. (NYSE:SLG) Seasonal Chart

Kelt Exploration Ltd. (TSE:KEL.TO) Seasonal Chart

HealthStream, Inc. (NASD:HSTM) Seasonal Chart

Kraft Heinz Co. (NASD:KHC) Seasonal Chart

Texas Pacific Land Tr (NYSE:TPL) Seasonal Chart

iShares S&P Small-Cap 600 Growth ETF (NASD:IJT) Seasonal Chart

Boeing Co. (NYSE:BA) Seasonal Chart

Devon Energy Corp. (NYSE:DVN) Seasonal Chart

US Concrete, Inc. (NASD:USCR) Seasonal Chart

Oil States Intl (NYSE:OIS) Seasonal Chart

Movado Group, Inc. (NYSE:MOV) Seasonal Chart

Autoliv, Inc. (NYSE:ALV) Seasonal Chart

Petrochina Co. (NYSE:PTR) Seasonal Chart

Direxion Daily FTSE Europe Bull 3x Shares (AMEX:EURL) Seasonal Chart

First Trust ISE ChIndia Index Fund (NYSE:FNI) Seasonal Chart

Cohen & Steers Infrastructure Fund (NYSE:UTF) Seasonal Chart

 

 

The Markets

Stocks closed mixed in the final session of the week as end-of-quarter rebalancing amongst the sectors continues to impact broad market activity.  The S&P 500 Index closed little changed, down by 0.06%.  The rising 20-day moving average at 3886 was tested at the lows of the session, highlighting the level as short-term support.  The short-term moving average is converging on the more intermediate-term 50-day moving average in what is looking like a pending bearish crossover.  Downside risks for the large-cap benchmark remain to previous horizontal resistance, now support, at 3550, but intermediate levels of support around the 50-day at 3862 and horizontal support close to 3700 provide levels of significance that the bulls are likely to try to defend.  Momentum indicators have been negatively diverging from price for a number of months, indicating waning buying demand, typically a precursor to a market pullback.  There remains eight more sessions between now and the end of the quarter, leaving little time for our downside targets amidst quarter-end rebalancing to be hit.  But regardless of how the chips fall, our desire to take advantage of end of quarter weakness to ramp up our risk metrics in our portfolio before the new quarter begins.  We provided a list of a number of ETFs on our radar and the levels that would be enticing to buy in our Market Outlook for March 19.

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

• Weekly look at the large-cap benchmark and what the charts have to say
• The rise in COVID cases globally and the impact that it is having on risk assets
• Canada Retail Sales and what drove activity in the first month of the year

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Sentiment on Friday, as gauged by the put-call, ended bullish at 0.82.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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