Equity Clock

Stock Market Outlook for April 1, 2021

The S&P 500 Index has averaged a gain of 2.5% in April over the past two decades with 80% of periods showing positive results.

 

 

 

*** 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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Apartment Investment and Management Co. (NYSE:AIV) Seasonal Chart

Kroger Co. (NYSE:KR) Seasonal Chart

Mondelez International, Inc. (NASD:MDLZ) Seasonal Chart

Bio-Techne Corporation (NASD:TECH) Seasonal Chart

Invesco Dynamic Software ETF (NYSE:PSJ) Seasonal Chart

IAMGold Corp. (TSE:IMG.TO) Seasonal Chart

Meridian Bioscience Inc. (NASD:VIVO) Seasonal Chart

Franco-Nevada Corp. (TSE:FNV.TO) Seasonal Chart

TC Energy Corporation (TSE:TRP.TO) Seasonal Chart

Westport Innovations, Inc. (TSE:WPRT.TO) Seasonal Chart

Toronto Dominion Bank (NYSE:TD) Seasonal Chart

SPDR S&P 1500 Momentum Tilt ETF (AMEX:MMTM) Seasonal Chart

Invesco S&P SmallCap Health Care ETF (NASD:PSCH) Seasonal Chart

Vanguard S&P Small-Cap 600 Growth ETF (NYSE:VIOG) Seasonal Chart

Autonation, Inc. (NYSE:AN) Seasonal Chart

Dollar Tree, Inc. (NASD:DLTR) Seasonal Chart

TransDigm Group Inc. (NYSE:TDG) Seasonal Chart

Live Nation Entertainment, Inc. (NYSE:LYV) Seasonal Chart

Winnebago Industries Inc. (NYSE:WGO) Seasonal Chart

Summit Industrial Income REIT (TSE:SMU/UN.TO) Seasonal Chart

Molina Healthcare, Inc. (NYSE:MOH) Seasonal Chart

Johnson Outdoors, Inc. (NASD:JOUT) Seasonal Chart

iShares MSCI USA Momentum Factor ETF (AMEX:MTUM) Seasonal Chart

Vanguard Russell 2000 Growth ETF (NASD:VTWG) Seasonal Chart

SPDR S&P Health Care Services ETF (NYSE:XHS) Seasonal Chart

Invesco DWA Technology Momentum ETF (NASD:PTF) Seasonal Chart

Energy Transfer LP (NYSE:ET) Seasonal Chart

 

 

The Markets

Stocks closed higher in the last trading session of March as investors conducted their final rebalance trades before the quarter came to a close.  The S&P 500 Index added just over a third of one percent, touching a new all-time high intraday.  A short-term flag pattern has been charted just above support at rising 20 and 50-day moving averages, presenting a bullish setup ahead of the start of the new month and quarter.  The magnetic effect of the psychologically important 4,000 level is being observed, despite concerns that are bubbling up pertaining to the rise of COVID cases globally. 

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

• The surge in COVID cases globally and the seasonal trend of respiratory illnesses through the spring and summer
• A look at credit conditions and what it has to say about how we should be positioning
• The tendency for stocks in the month of April
• Weekly petroleum status and what the change in inventories has to say about how we should be invested in energy commodities and the energy sector
• Canadian GDP for January and what is driving the strength

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March was a strong period for equities with the S&P 500 Index gaining 4.24%, representing the strongest monthly return since November.  For the month ahead, the large-cap benchmark has averaged an increase of 2.5% in April over the past two decades with a strong 80% of periods showing gains.  Returns over the past 20 years have ranged from a loss of 6.1% in April of 2002 to a gain of 12.7% in April of last year (2020).  The fourth month of the year tends to be a strong period for the stock market and we breakdown the strategy of how to take advantage in our just released monthly report for April.  Look for this report in your inbox or Subscribe Now.

Just Released…

Our monthly report for April has now been released, providing you with insight on how to position for the month(s) ahead.

Highlights in this report include:

• Equity market tendencies in the month of April
• Elevated levels of concern
• Tracking the trend in COVID cases compared to the seasonal norm
• Manufacturer Euphoria
• Copper
• Welcome to construction season
• How to defend your portfolio this summer
• Spring is the time for real estate
• Telecommunications sector
• Looking out over the horizon at the flipside to this pro-cyclical shift
• Time to take a position in the bond market?
• Europe
• Emerging Markets
• Break of the trend of underperformance in Canadian equities
• April’s currency tailwind
• The technical status of the S&P 500 Index
• Positioning for the months ahead
• Sector reviews and ratings
• Stocks that have frequently gained in the month of April
• Notable stocks and ETFs entering their period of strength in April

Subscribe now and we’ll send this 92-page report to you.

Sentiment on Wednesday, 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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