Equity Clock

Stock Market Outlook for May 11, 2021

Things to watch for to determine when it is safe to be buyers again of the beaten down Technology sector.

 

 

 

*** 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.

CME Group Inc. (NASD:CME) Seasonal Chart

Under Armour, Inc. (NYSE:UAA) Seasonal Chart

Standard Motor Prod, Inc. (NYSE:SMP) Seasonal Chart

Nature’s Sunshine Products, Inc. (NASD:NATR) Seasonal Chart

BCE, Inc. (NYSE:BCE) Seasonal Chart

BMO Junior Gold Index ETF (TSE:ZJG.TO) Seasonal Chart

 

 

The Markets

Stocks sold off on Monday as investors continued to rotate away from the technology sector.  The S&P 500 Index shed just over one percent, pulling back towards short-term support around its rising 20-day moving average.  Reaction to rising intermediate trend channel resistance remains apparent, the span of which now hovers between 4050 and 4250.  Momentum indicators remain on sell signals following the bearish crossovers triggered in recent weeks, however, the technical indicators continue to show characteristics of a bullish trend.  Levels down to the rising 50-day moving average remain fair game for the benchmark in order to conclude that the rising intermediate-term trend for stocks is still intact.  As has been alluded to, we have entered the time of year when trading activity becomes much more erratic, leading to swings higher and lower as investors pick their spots accordingly.

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

• The defensive tilt of Monday’s session
• What we are looking for to get re-enticed into technology sector stocks; the levels to watch
• Ratings changing in this week’s chart books; which industry groups have been upgraded as buying demand emerges

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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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Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.90.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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