Equity Clock

Stock Market Outlook for July 7, 2021

Core cyclical sectors reversing from levels of resistance around major moving averages, threatening the seasonal rebound in these segments through the middle of the month.

 

 

 

*** 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.

Canadian Imperial Bank Of Commerce (TSE:CM.TO) Seasonal Chart

United Parcel Service, Inc. (NYSE:UPS) Seasonal Chart

Baidu, Inc. (NASD:BIDU) Seasonal Chart

Nasdaq OMX Group Inc. (NASD:NDAQ) Seasonal Chart

Select Medical Holdings Corp. (NYSE:SEM) Seasonal Chart

Sprott Physical Platinum and Palladium Trust (AMEX:SPPP) Seasonal Chart

 

 

The Markets

Stocks closed mixed on Tuesday following a reversal in core-cyclical sectors that had investors reallocating towards growth.  The S&P 500 Index shed two-tenths of one percent, clawing back some of the gains recorded in recent days attributed to the summer rally period.  This follows overbought readings in various momentum indicators seen at the end of last week with RSI stretching above 70 and Stochastics hovering well above 80.  The benchmark remains above support at major moving averages, which continue to point higher, suggesting positive trends across multiple timeframes.  The limits of the approximately 200-point trading range are pushing above 4200 and 4400.

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

• Concerns pertaining to core cyclical sectors of the market and the performance that is typical of them at this time of year
• Treasury bond ETFs hitting levels of resistance
• Upgrades and downgrades in this week’s chart books: Find our which industries have joined our list of areas to accumulate
• Margin debt and what it has to say about investor sentiment and bullish/bearish positioning

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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 Tuesday, as gauged by the put-call ratio, ended bullish at 0.89.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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