Equity Clock

Stock Market Outlook for May 20, 2021

The elimination of excess is placing the market on a firmer footing.

 

 

 

*** 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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Iron Mountain, Inc. (NYSE:IRM) Seasonal Chart

Guess?, Inc. (NYSE:GES) Seasonal Chart

Cascades, Inc. (TSE:CAS.TO) Seasonal Chart

Caseys General Stores, Inc. (NASD:CASY) Seasonal Chart

Jack Henry & Associates, Inc. (NASD:JKHY) Seasonal Chart

Methode Electronics, Inc. (NYSE:MEI) Seasonal Chart

Citizens, Inc. (NYSE:CIA) Seasonal Chart

Consolidated Water Co. Ltd. (NASD:CWCO) Seasonal Chart

Portland General Electric Co. (NYSE:POR) Seasonal Chart

 

 

The Markets

Weakness in the price of crytocurrencies leached its way into the broader equity market on Wednesday, sending stocks abruptly lower early in the session.  The S&P 500 Index managed to cut much of the early day loss to end lower by just less than three-tenths of one percent.  The rising 50-day moving average and the lower limit of the rising intermediate trading range managed to entice investors to buy the dip.  Momentum indicators, while still pointing lower, are showing characteristics of a bullish trend.  Resistance is implied at the declining 20-day moving average, while downside risks are to the rising 100-day moving average.

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

• The plunge in Bitcoin and the levels where the risk-reward will become enticing for the next intermediate-term run
• The selloff and reversal in the price of Lumber; Should you buy the recent dip?
• Oil inventories and resistance for the price of the commodity
• Our stance in the energy sector
• Canada CPI and what the data indicates pertaining to the fundamental trend of one seasonally favoured sector
• Highest put-call ratio since last October and implication for the market

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bearish at 1.07. 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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