Equity Clock

Stock Market Outlook for May 7, 2021

The setup in this seasonal trade is golden.

 

 

 

*** 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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eBay, Inc. (NASD:EBAY) Seasonal Chart

Equinix, Inc. (NASD:EQIX) Seasonal Chart

Entertainment Prop Trust (NYSE:EPR) Seasonal Chart

Altisource Portfolio Solutions S.A. (NASD:ASPS) Seasonal Chart

Heritage-Crystal Clean, Inc. (NASD:HCCI) Seasonal Chart

Middlesex Water Co. (NASD:MSEX) Seasonal Chart

C&F Financial Corp. (NASD:CFFI) Seasonal Chart

Jewett-Cameron Trading Co. (NASD:JCTCF) Seasonal Chart

Kinross Gold Corp. (NYSE:KGC) Seasonal Chart

Twitter, Inc. (NYSE:TWTR) Seasonal Chart

iShares Russell 1000 Growth ETF (NYSE:IWF) Seasonal Chart

Fidelity Nasdaq Composite Index Tracking Stock (NASD:ONEQ) Seasonal Chart

SPDR S&P Biotech ETF (NYSE:XBI) Seasonal Chart

American States Water Co. (NYSE:AWR) Seasonal Chart

MTS Systems Corp. (NASD:MTSC) Seasonal Chart

Neogen Corp. (NASD:NEOG) Seasonal Chart

Crawford & Co. (NYSE:CRD/A) Seasonal Chart

Iqvia Holdings, Inc. (NYSE:IQV) Seasonal Chart

Independence Realty Trust, Inc. (NYSE:IRT) Seasonal Chart

Qualys, Inc. (NASD:QLYS) Seasonal Chart

Vista Outdoor Inc. (NYSE:VSTO) Seasonal Chart

Invesco DWA SmallCap Momentum ETF (NASD:DWAS) Seasonal Chart

Fidelity MSCI Health Care Index ETF (AMEX:FHLC) Seasonal Chart

SPDR S&P Pharmaceuticals ETF (NYSE:XPH) Seasonal Chart

 

 

The Markets

Stocks closed higher ahead of the big US payroll report slated to be released on Friday.  The S&P 500 Index added just over eight-tenths of one percent, continuing to hold support around its rising 20-day moving average.  This is a logical hurdle for the benchmark to float around during periods of short-term uncertainty.  The benchmark has been grinding around the upper limit to its rising intermediate trading range that spans approximately between 4025 and 4250.  Momentum indicators continue to point lower following sell signals triggered in the past couple of weeks, however, characteristics of a bullish trend remain intact with MACD and RSI still holding above their middle lines.  The intermediate-term trend remains that of higher-highs and higher-lows and there is no indication that it is set to conclude, however, we have entered the time of year when price action can become a bit more erratic as positive tendencies fade.  Assuring that purchases are made around levels of support if accumulating equity exposure becomes much more prudent during the next six months than the prior six months.  This will help to keep our stops tight compared to our entry points, while still respecting the ongoing progression of higher-highs and higher-lows, as it exists today.

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

• Time to rotate away from stocks in the US?
• The trade in Gold
• Weekly jobless claims and what they have to say about the health of the labor market and the momentum of the economic recovery
• A preview of the monthly payroll report for April
• Natural Gas inventories and what the year-to-date change has to say about whether we should pursue a trade in the commodity

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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.87.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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