Equity Clock

Stock Market Outlook for May 18, 2021

With inflationary pressures bubbling up in the economy, commodity exposure within portfolios has become an important consideration for the first time in over a decade.

 

 

 

*** 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.

MTY Food Group Inc. (TSE:MTY.TO) Seasonal Chart

Premier Gold Mines Ltd. (TSE:PG.TO) Seasonal Chart

OGE Energy Corp. (NYSE:OGE) Seasonal Chart

Otter Tail Power Co. (NASD:OTTR) Seasonal Chart

Flexsteel Industries, Inc. (NASD:FLXS) Seasonal Chart

Ares Capital Corp. (NASD:ARCC) Seasonal Chart

Alamos Gold Inc. (NYSE:AGI) Seasonal Chart

Eldorado Gold Corp. (NYSE:EGO) Seasonal Chart

Seabridge Gold, Inc. (NYSE:SA) Seasonal Chart

Boot Barn Holdings Inc. (NYSE:BOOT) Seasonal Chart

iShares MSCI Brazil Small-Cap ETF (NASD:EWZS) Seasonal Chart

Direxion Daily Gold Miners Index Bull 2x Shares (NYSE:NUGT) Seasonal Chart

Vanguard Growth ETF (NYSE:VUG) Seasonal Chart

 

 

The Markets

Stocks closed marginally lower on Monday as weakness in technology offset strength realized in commodity centric sectors of energy and materials.  The S&P 500 Index shed a quarter of one percent, closing just below short-term resistance at the now declining 20-day moving average.  The benchmark continues to respect the limits of its intermediate-term trend channel, the lower limit of which can be pegged around 4,075, while the upper limit can be implied around 4,275.  Momentum indicators have begun to stabilize around their middle lines following the downward tilt that was observed since the middle of April.

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

• The strength in commodity producers and how we are benefiting
• Commodities and their industry groups that received rating changes in our weekly chart books; Which ones are they and why our view has changed
• The way to play the commodity market tilt in just one benchmark
• Canadian Dollar and the interesting juncture it has reached
• Empire State Manufacturing Survey and what it has to say about the state of the manufacturing economy

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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 0.92.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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