Equity Clock

Stock Market Outlook for April 12, 2021

The record setting rise in producer prices this year has investors pondering when the Fed may pull the plug on its easy monetary policy.

 

 

 

*** 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.

Alaska Communications Systems Group, Inc. (NASD:ALSK) Seasonal Chart

Commercial Vehicle Group Inc. (NASD:CVGI) Seasonal Chart

Aspen Aerogels, Inc. (NYSE:ASPN) Seasonal Chart

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

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

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

First Trust Multi Cap Growth AlphaDEX Fund (NASD:FAD) Seasonal Chart

First Trust Health Care AlphaDEX Fund (NYSE:FXH) 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

 

 

The Markets

Investors kept leaning on the buy button at the end of the trading week, pushing stocks to a fresh set of record highs.  The S&P 500 Index added three-quarters of one percent, surpassing another round milestone at 4100.  The Relative Strength Index (RSI) has pushed into overbought territory above 70 and MACD has advanced to its highest level since the start of December.  While the indicators allude to potential exhaustion in the near-term, signs of peaking have yet to be observed.  The large-cap benchmark continues to hold within a rising trend channel that spans between 3950 and 4150, the upper limit of which is now around half of a percent away from being fulfilled.  The rising trend of higher-highs and higher-lows remains quite orderly, not showing the kind of parabolic move that has preceded previous pullbacks, such as June and September of last year.  It would take a surge above the upper hurdle of the range around 4150 to chart a similar parabolic pattern, placing the rise on an unsuitable trajectory and increasing the vulnerability of a near-term pullback.

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

• Weekly look at the S&P 500 Index
• The largest first quarter increase in producer prices on record and the positive influence it could provide to one seasonal trade in the next few months
• Canadian Labour Force Survey and our view of the Canadian Dollar
• Wholesale trade for February and monitoring the change in inventories

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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.75.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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