Equity Clock

Stock Market Outlook for March 23, 2021

Not even the hot housing market was immune from the February cold with activity falling by 0.5% (NSA) in the winter month, a negative divergence compared to the average increase of 5.2%.

 

 

 

*** 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.

Great Canadian Gaming Corp. (TSE:GC.TO) Seasonal Chart

Marathon Oil (NYSE:MRO) Seasonal Chart

Surge Energy Inc. (TSE:SGY.TO) Seasonal Chart

Magna International Inc. (NYSE:MGA) Seasonal Chart

NRG Energy Inc. (NYSE:NRG) Seasonal Chart

Electrovaya Inc. (TSE:EFL.TO) Seasonal Chart

Apollo Investment Corp. (NASD:AINV) Seasonal Chart

WSFS Financial Corp. (NASD:WSFS) Seasonal Chart

Pegasystems, Inc. (NASD:PEGA) Seasonal Chart

AirBoss of America Corp. (TSE:BOS.TO) Seasonal Chart

Travelzoo Inc. (NASD:TZOO) Seasonal Chart

Tri Pointe Homes Inc. (NYSE:TPH) Seasonal Chart

Summit Materials Inc. (NYSE:SUM) Seasonal Chart

FirstService Corp. (NASD:FSV) Seasonal Chart

BlackRock Enhanced Capital and Income Fund, Inc. (NYSE:CII) Seasonal Chart

Direxion Daily Healthcare Bull 3x Shares (NYSE:CURE) Seasonal Chart

Eaton Vance Enhanced Equity Income Fund (NYSE:EOI) Seasonal Chart

Eaton Vance Tax-Advantaged Global Dividend Income Fund (NYSE:ETG) Seasonal Chart

iShares Global Energy ETF (NYSE:IXC) Seasonal Chart

VanEck Vectors Morningstar Wide Moat ETF (AMEX:MOAT) Seasonal Chart

Vanguard Energy ETF (NYSE:VDE) Seasonal Chart

 

 

The Markets

Stocks closed higher in the first trading session of the week as investors found relief in the decline in the cost of borrowing.  The S&P 500 Index gained seven-tenths of one percent, turning higher from its 20-day moving average, which was tested as support during the Friday session.  Momentum indicators continue to show signs of rolling over as the divergence compared to price over the past few months evolves.  This is a market that is in need of reinvigoration, whether it by from an upside catalyst or a selloff to bring stocks back to levels that are more enticing to draw buyers into the market.  We remain in this quarter-end/mean reversion period as portfolio managers rebalance their books ahead of the end of March.  This appears to have been culprit behind Monday’s trade, leading to alleviation in the selling pressures of bonds and technology stocks while drawing funds away from energy and financials, two of the best performers quarter-to-date.  Portfolio rebalancing is projected to continue through the week ahead, allowing bond prices to temporarily catch a bid as portfolio managers bring their books back inline with investment policy statement guidelines.  Whether equity investors continue to find relief as a result of the short-term low in yields or the strength in the bond market comes at the expense of stocks is up for debate given how sensitive the market has become to the rise in the cost of borrowing.  Our expectation has been a downside resolution in stocks ahead of the end of the month that will allow for enticing buying opportunities for the month ahead, but we’ll let the market decide and be willing to adjust our allocations accordingly should our enticing buy targets be reached.

Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

• Currencies
• Cryptocurrencies
• Commodities
• Major Benchmarks
• Sub-sectors / Industries
  

Subscribe now.

 

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

• Notable changes in this week’s chartbooks, highlighting what has been upgraded to Accumulate following recent breakouts
• Europe
• US Existing Home Sales

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

Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.72.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...