Equity Clock

Stock Market Outlook for July 8, 2021

Despite the S&P 500 Index sitting in record high territory, well above its 50-day moving average, only half of its constituents are above this intermediate-term hurdle.

 

 

 

*** 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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TFI International Inc. (TSE:TFII.TO) Seasonal Chart

Intl Flavors & Fragrances (NYSE:IFF) Seasonal Chart

Goldman Sachs Group, Inc. (NYSE:GS) Seasonal Chart

Kinross Gold Corp. (TSE:K.TO) Seasonal Chart

Heritage Financial Corp. (NASD:HFWA) Seasonal Chart

Partner Communications Co. Ltd. (NASD:PTNR) Seasonal Chart

SPDR EURO STOXX 50 ETF (NYSE:FEZ) Seasonal Chart

 

 

The Markets

Stocks continued to push further into record high territory on Wednesday as investors once again bought shares of big-cap technology.  The S&P 500 Index added just over a third of one percent, erasing the loss that was recorded on Tuesday and keeping the summer rally alive.  The benchmark remains above major moving averages, indicating positive trends across multiple timeframes.  The limits of the rising trend channel are now seen around 4250 and 4450.  A week and a half remains in this summer rally timeframe that typically sees stocks rise between the the last few days of June and the first few weeks of July.  So far, the strength seen this year is well above average for this positive timeframe, but with many sectors still below levels of resistance, as highlighted in our last report, we want to tread softly as the market action continues to highlight some strains beneath the surface.  We’ll take what we can get, but we certainly do not want to overstay our welcome should the bears show up to our summer party.

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

• Indications of poor breadth raising concern about when and where the summer rally may fizzle out
• US Vehicle Sales and whether or not the fundamental and technical prongs to our approach justify an allocation to the auto stocks
• Job Openings and Labor Turnover Survey (JOLTS) and how the trends are favoring allocations in our seasonal portfolio

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.83.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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