Equity Clock

Stock Market Outlook for June 7, 2021

The three prongs to our approach are finally aligning for this sector.  Find out which one in today’s report.

 

 

 

*** 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.

Verizon Communications (NYSE:VZ) Seasonal Chart

City Holding Co. (NASD:CHCO) Seasonal Chart

First of Long Island Corp. (NASD:FLIC) Seasonal Chart

Marine Products Corp. (NYSE:MPX) Seasonal Chart

Investors Real Estate Trust (NYSE:IRET) Seasonal Chart

Apyx Medical Corp. (NASD:APYX) Seasonal Chart

WisdomTree Dividend ex-Financials Fund (NYSE:DTN) Seasonal Chart

Vanguard Extended Duration Treasury ETF (NYSE:EDV) Seasonal Chart

Fidelity MSCI Consumer Staples Index ETF (AMEX:FSTA) Seasonal Chart

Duke Energy Corp. (NYSE:DUK) Seasonal Chart

Sprott Physical Gold Trust (NYSE:PHYS) Seasonal Chart

 

 

The Markets

Stocks jumped on Friday following the release of the monthly payroll report for June, which showed that job creation in the past month failed to live up to expectations.  The Bureau of Labor Statistics indicates that 559,000 payrolls were added last month, which was shy of the consensus analyst estimate that called for a rise of 650,000.  The unemployment rate ticked lower to 5.8% from 6.1% previous and average hourly earnings jumped again, this time by 0.5%, far surpassing the 0.2% increase that was forecasted.  Stripping out the seasonal adjustments, payrolls actually increased by 973,000, or 0.7%, in May, which is inline with the average increase for the fifth month of the year.  The year-to-date change continues to hold an above average pace and is now higher by 1.2% through the first five months of the year.  The average change in payrolls through this point in the year is an increase of a mere 0.2%.   We sent out further insight to subscribers intraday, including how the trends in the data are influencing our portfolio allocations.

The S&P 500 Index added nine-tenths of one percent, closing marginally above short-term resistance around 4200 that has been highlighted in recent days.  Short-term support at the 20-day moving average remains intact and as are the limits to the rising intermediate-term range, now between 4150 and 4350.  Momentum indicators, while still pointing higher, remain tenuous following the MACD buy signal that was triggered just over a week ago.

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

• US Nonfarm Payrolls
• Weekly look at the large-cap benchmark
• The sector that is now checking off the three prongs to our approach and how we’re playing it
• US Factory Orders; What is driving the results and the exposure that we want to take in our portfolio
• Canada Labour Force Survey

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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.84.

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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