Equity Clock

Stock Market Outlook for April 30, 2021

One popular trade just got a shot in the arm as result of strong earnings, which has us encouraged about the seasonal trade in this segment of the market.

 

 

 

*** 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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AlphaClone Alternative Alpha ETF (AMEX:ALFA) Seasonal Chart

Colliers International Group Inc. (TSE:CIGI.TO) Seasonal Chart

BMO Equal Weight U.S. Health Care Hedged to CAD Index ETF (TSE:ZUH.TO) Seasonal Chart

General Dynamics Corp. (NYSE:GD) Seasonal Chart

Hon Industries, Inc. (NYSE:HNI) Seasonal Chart

Steris plc (NYSE:STE) Seasonal Chart

Merit Medical Systems, Inc. (NASD:MMSI) Seasonal Chart

OSI Systems, Inc. (NASD:OSIS) Seasonal Chart

Retractable Technologies Inc. (AMEX:RVP) Seasonal Chart

Gildan Activewear, Inc. (NYSE:GIL) Seasonal Chart

A10 Networks, Inc. (NYSE:ATEN) Seasonal Chart

 

 

The Markets

Stocks closed solidly higher on Thursday as strength in Financials and Communications Services propelled the market to new heights.  The S&P 500 Index jumped by just less than seven-tenths of one percent, surpassing the short-term hurdle that we have been highlighting in recent days around 4,200.  The benchmark continues to grind against the upper limit to its rising trend channel, the range of which can be seen between 4,000 and 4,225.  A test of the upper hurdle led to an initial negative reaction during the morning hours of Thursday’s session, but buyers found their footing into the afternoon to push the benchmark to a new record high.  Despite the strength, momentum sell signals with respect to MACD and RSI remain intact, although they are showing slight indications of turning back higher.  This remains a market that is within an intermediate-term trend of higher-highs and higher-lows, warranting a bullish bias until the trajectory of the technicals or the fundamentals suggest otherwise.

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

• The return of strength in FAANG and the implications for a core seasonal trade this summer
• Weekly jobless claims and what they have to say about the strength of the economic recovery
• Natural Gas inventories and the technical and fundamental status behind the seasonal trade in the energy commodity
• Margin debt and the risk-reward for stocks

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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.71.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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