Equity Clock

Stock Market Outlook April 6, 2021

It is extremely rare to see both the broad equity market and the Volatility Index (VIX) close firmly higher on the day.  We tell you the path to take in your investment portfolio.

 

 

 

*** 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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Black Diamond Group Ltd. (TSE:BDI.TO) Seasonal Chart

Transat AT Inc. (TSE:TRZ.TO) Seasonal Chart

Webster Financial Corp. (NYSE:WBS) Seasonal Chart

PRA Group, Inc. (NASD:PRAA) Seasonal Chart

Gladstone Commercial Corp. (NASD:GOOD) Seasonal Chart

Pzena Investment Management Inc. (NYSE:PZN) Seasonal Chart

CALAMOS Convertible and High Income Fund (NASD:CHY) Seasonal Chart

Fidelity MSCI Information Technology Index ETF (AMEX:FTEC) Seasonal Chart

PureFunds ISE Cyber Security ETF (AMEX:HACK) Seasonal Chart

Voya Asia Pacific High Dividend (NYSE:IAE) Seasonal Chart

Invesco KBW High Dividend Yield Financial ETF (NASD:KBWD) Seasonal Chart

New Mountain Finance Corp. (NYSE:NMFC) Seasonal Chart

Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE:RNP) Seasonal Chart

 

 

The Markets

Stocks surged in the first session of the week following a much stronger than expected payroll report for March.  The Bureau of Labor Statistics indicates that 916,000 payrolls were added last month, which was significantly more than the consensus analyst estimate that called for a rise of 658,000.  The unemployment rate ticked down to 6.0% from 6.2% previous and average hourly earnings fell by 0.1%, weaker than the 0.2% increase forecasted.  Stripping out the seasonal adjustments, payrolls actually increased by 1.323 million, or 0.9%, in March, which is stronger than the 0.5% increase that is the norm for the third month of the year.  The year-to-date change continues to hold an above average pace, down by a mere 0.1% through the first three months of the year.  The average change through the end of March is a decline of 1.0%.  We sent out further insight to subscribers intraday.  Subscribe now.

The S&P 500 Index once again shot to a new record height, adding 1.44% from Thursday’s close.  A trend of higher-highs and higher-lows remains intact, underlined by support at the rising 50-day moving average.  The benchmark rebounded back into its rising trading range at the end of last month and it now appears to be on track to reach the upper limit of the rising range that currently stands around 4150.  Momentum indicators are pointing higher, violating the negative divergences that pointed to waning buying pressures over recent months.

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

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

• Why Monday’s market rally may not have been all what it looked to be on the surface
• The rare session for the Volatility Index (VIX)
• Notable changes in this week’s chart books

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

Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.69. 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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