Equity Clock

Stock Market Outlook for March 31, 2021

Interest rate spreads remain on the rise, but if the level of consumer loans at all commercial banks is in decline, is this still positive for financial stocks?

 

 

*** 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.

Encore Capital Group Inc. (NASD:ECPG) Seasonal Chart

Virtus Investment Partners, Inc. (NASD:VRTS) Seasonal Chart

Tenneco Automotive (NYSE:TEN) Seasonal Chart

Anworth Asset Mortgage Corp. (NYSE:ANH) Seasonal Chart

Pretium Resources, Inc. (NYSE:PVG) Seasonal Chart

TeraGo Inc. (TSE:TGO.TO) Seasonal Chart

Kimball Electronics, Inc. (NASD:KE) Seasonal Chart

 

 

The Markets

Stocks slipped slightly on Tuesday as investors take the final opportunity to rebalance portfolios ahead of the end of the quarter.  The S&P 500 Index closed lower by around a third of one percent, reacting to the uptick in rates that once again weighed on stocks in the technology sector.  Financials were one of the few beneficiaries as the sell bonds and buy banks trade continues to evolve.  The large-cap benchmark remains supported at its rising 50-day moving average, underlining the trend of higher-highs and higher lows.  As of Tuesday’s close, the widely followed benchmark has gained 3.87% in the month of March, well ahead of the mere 0.5% return that has been the average through the third month of the year over the past two decades.  It has been the core cyclical bets in the financial, materials, and industrial sectors that have really excelled, a trend that is normal for this time of year.  But our timeline suggests that you shouldn’t distance yourself too far from the lagging technology in the month of April.  We lay out our strategy and our view of how we expect to rotate within our portfolio in our monthly outlook that will be released to subscribers on Wednesday.

Soon to be released…

Our extensive monthly report is slated to be released to subscribers on Wednesday, highlighting everything to be aware of from a seasonal, technical, and fundamental perspective for the month(s) ahead.  Subscribers can look out for this report in their inbox.

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

• Home prices in the US and what the trends say for the health of the market and the consumer
• Consumer confidence
• The decline in consumer and business loan activity

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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.77.

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

TSE Composite

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