Equity Clock

Stock Market Outlook for June 28, 2021

Encouraging data starting to emerge in the financial sector. Also, how to play the summer rally period ahead.

 

 

 

*** 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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Skyline Corp. (NYSE:SKY) Seasonal Chart

AcelRx Pharmaceuticals Inc. (NASD:ACRX) Seasonal Chart

Target Corp. (NYSE:TGT) Seasonal Chart

Hubbell, Inc. (NYSE:HUBB) Seasonal Chart

Trillium Therapeutics Inc. (NASD:TRIL) Seasonal Chart

Element Financial Corp. (TSE:EFN.TO) Seasonal Chart

Silver Elephant Mining Corp. (TSE:ELEF.TO) Seasonal Chart

CrossAmerica Partners LP (NYSE:CAPL) Seasonal Chart

 

 

The Markets

Stocks climbed higher to close the week as enthusiasm surrounding upbeat earnings from Nike helped to lift consumer centric stocks.  The S&P 500 Index added a third of one percent, setting yet another record closing high.  Over the past week, the benchmark has moved above short-term resistance at 4225, taking the threat of normal pullback off the table, for now.  Intermediate support remains intact around the rising 50-day moving average.  Despite the crack of the rising intermediate trading range seen at this point last week, the rising span has emerged triumphant, shaking off the bears as this march of higher-highs and higher-lows continues.  The limits of the rising range can presently be seen at 4200 and 4400.  With Friday’s gain, a renewed buy signal with respect to MACD has been triggered.  But, obviously, with the numerous crossovers realized in this indicator over just the past year, its use as a timing indicator has proven to be quite poor.  Our interest in the momentum indicator is where these crossovers occur in relation to the one prior.  A bearish cross at a lower level than the one that preceded it would suggest waning equity momentum.  This was the case just over a week ago as the sell signal at a lower level than the bearish cross that was recorded around the middle of April negatively diverged from price, which had been charting higher-highs and higher-lows.  The threat that this negative divergence was suggesting has been significantly dampened with this past week’s renewed buy signal.  It is the result of this whipsaw action that is notorious with the technicals that we employ a three-pronged approach, encompassing seasonal, technical, and fundamental analysis.  There is no such thing as a silver bullet in this business.

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

• Weekly look at the S&P 500 Index and the best course of action for the summer rally period ahead
• US International Trade: What is driving the action and the desired equity exposure to take advantage
• Consumer loan growth and how to play the financials through the next quarter
• The seasonal trade in Gold: Is the trade broken and what to do next

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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.74.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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