Equity Clock

Stock Market Outlook for May 6, 2021

Treasury Bond ETFs moving firmly above 50-day moving average lines for the first time since last August.

 

 

 

*** 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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Ensign Group Inc. (NASD:ENSG) Seasonal Chart

United Fire & Casualty Co. (NASD:UFCS) Seasonal Chart

Fresh Del Monte Produce (NYSE:FDP) Seasonal Chart

Cardiovascular Systems, Inc. (NASD:CSII) Seasonal Chart

Firm Capital Mortgage Investment Corp. (TSE:FC.TO) Seasonal Chart

Aphria, Inc. (NASD:APHA) Seasonal Chart

First Trust Utilities AlphaDEX Fund (NYSE:FXU) Seasonal Chart

 

 

The Markets

Stocks closed mildly higher on Wednesday as the rotation back to core cyclical bets continues now that the global case count of new COVID cases appears to have peaked.  The S&P 500 Index added a mere seven basis points (0.07%), continuing to cling to rising short-term support around its 20-day moving average. Reaction to trend channel resistance that currently hovers around 4,250 remains apparent, leading to a rollover back to levels of support below.  Trend channel support and the rising 50-day moving average hover between 4020 and 4025, presenting a logical test should the broader market continue to weaken in the days ahead.  Momentum indicators are pointing lower following sell signals triggered a couple of weeks ago.  While the intermediate-term trend remains that of higher-highs and higher-lows, short-term trading action could become a bit erratic as we move past the heart of earnings season and towards the middle of May, typically a softer, more unpredictable time for equity market performance.

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

• Bond prices continuing to show signs of support
• Peculiar action among REITs and Utilities; which sector should you buy on this dip?
• US petroleum inventories and what they have to say about investing in the energy sector
• The price of oil and the target we see for the commodity

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Sentiment on Wednesday, as gauged by the put-call ratio, ended slightly bullish at 0.88.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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