Equity Clock

Stock Market Outlook for March 25, 2021

Energy sector ETF testing trendline support as we receive further insight on the health of demand for petroleum products in the US.

 

 

 

*** 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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Occidental Petroleum Corp. (NYSE:OXY) Seasonal Chart

ConAgra Brands, Inc. (NYSE:CAG) Seasonal Chart

ANI Pharmaceuticals, Inc. (NASD:ANIP) Seasonal Chart

AVEO Pharmaceuticals Inc. (NASD:AVEO) Seasonal Chart

Franklin Covey Co. (NYSE:FC) Seasonal Chart

Encompass Health Corp. (NYSE:EHC) Seasonal Chart

Orion Engineered Carbons SA (NYSE:OEC) Seasonal Chart

ProShares Ultra NASDAQ Biotechnology (NASD:BIB) Seasonal Chart

Tree Island Steel Ltd. (TSE:TSL.TO) Seasonal Chart

 

 

The Markets

Stocks closed lower on Wednesday as investors continue to race to rebalance portfolios ahead of the end of the quarter.  The S&P 500 Index slipped by over half of one percent, ending almost precisely at short-term support at the 20-day moving average.  MACD has now triggered a new sell signal with the indicator crossing below its signal line.  The momentum indicator has been negatively diverging from price for months, indicating waning buying demand, typically a precursor to a market pullback.  Downside risks are to previous horizontal resistance, now support at 3550, however, we would not be surprised to see levels above 3700 hold before the month comes to a close.  There is just five sessions left in the month and the quarter, leaving little time for portfolio managers to execute their final trades for the period, which are expected to see flows out of stocks and into bonds.

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

• US petroleum inventories and what they say of how to position in the energy sector
• The price of oil and our target for the commodity this year
• US Durable Goods Orders and what the opportunity is
• Auto stocks: Why they are weakening and when to look for opportunities

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.89.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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