Equity Clock

Stock Market Outlook for June 18, 2021

Value being sold off in favor of growth.  Find out our thoughts, what this means for the broader market, and the strategy ahead to stay on the right side of the market 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:

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Southwest Airlines Co. (NYSE:LUV) Seasonal Chart

AGF Management Ltd. (TSE:AGF/B.TO) Seasonal Chart

iShares S&P/TSX Capped Financials Index ETF (TSE:XFN.TO) Seasonal Chart

Intact Financial Corp. (TSE:IFC.TO) Seasonal Chart

Reinsurance Group of America (NYSE:RGA) Seasonal Chart

China Telecom Corp. (NYSE:CHA) Seasonal Chart

INV Metals, Inc. (TSE:INV.TO) Seasonal Chart

Atlanticus Holdings Corp. (NASD:ATLC) Seasonal Chart

Bank of South Carolina Corp. (NASD:BKSC) Seasonal Chart

KP Tissue Inc. (TSE:KPT.TO) Seasonal Chart

ProShares UltraShort Oil & Gas (NYSE:DUG) Seasonal Chart

Aberdeen Standard Physical Precious Metals Basket Shares ETF (NYSE:GLTR) Seasonal Chart

Swiss Helvetia Fund, Inc. (NYSE:SWZ) Seasonal Chart

Berkshire Hathaway, Inc. (NYSE:BRK/B) Seasonal Chart

Discover Financial Services (NYSE:DFS) Seasonal Chart

Cubic Corp. (NYSE:CUB) Seasonal Chart

Lindsay Corp. (NYSE:LNN) Seasonal Chart

RLI Corp. (NYSE:RLI) Seasonal Chart

Arch Capt. Grp. Ltd. (NASD:ACGL) Seasonal Chart

German American Bancorp (NASD:GABC) Seasonal Chart

Novartis A G (NYSE:NVS) Seasonal Chart

Westlake Chemical Corp. (NYSE:WLK) Seasonal Chart

iShares S&P/TSX Canadian Preferred Share Index ETF (TSE:CPD.TO) Seasonal Chart

Blackrock MuniYield Quality Fund Inc. (NYSE:MQY) Seasonal Chart

Pioneer High Income Trust (NYSE:PHT) Seasonal Chart

 

 

 

The Markets

A rather muted day for equity market, on aggregate, however, the action beneath the surface was significant.  The S&P 500 Index closed nearly unchanged, testing levels around rising short-term support at the 20-day moving average.  Intermediate support can be pegged at the rising 50-day moving average, now around 40-points below present levels at 4180.  Following a number of weeks of tenuous action realized with respect to MACD, the momentum indicator has triggered a sell signal at a lower level than the bearish crossover that preceded it.  This negative divergence compared to price is a significant technical revelation as it emphasizes that buying demand in the market has notably faded and the risk of a pullback is elevated.  Stocks have been little changed over the past couple of months and the lack of direction may force the hands of investors to step back to wait for a better pitch ahead.  Seasonally, the equity market is in one of the weakest periods of the year, giving the bias to a downside move through the next week and a half.

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

• Value being sold off in favor of growth; the strategy moving forward
• The pronounced drop in metal commodity prices and the risk of margin calls
• Weekly Jobless Claims and how the data compares to seasonal norms
• Natural gas storage and what the trend indicates for our bullish positioning
• The trend of respiratory illnesses in the US and what it means for the “return to normal”

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

 

 

Seasonal charts of companies reporting earnings today:

• No significant earnings scheduled

 

 

S&P 500 Index

 

 

TSE Composite

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