Equity Clock

Stock Market Outlook for July 16, 2021

Industrial production, on aggregate, has softened, but manufacturers remain upbeat.  Find out what this means 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.

Eldorado Gold Corp. (TSE:ELD.TO) Seasonal Chart

WisdomTree Barclays U.S. Aggregate Bond Zero Duration Fund (NASD:AGZD) Seasonal Chart

ManTech Intl Corp. (NASD:MANT) Seasonal Chart

ProShares Ultra Gold (NYSE:UGL) Seasonal Chart

Brookfield Property Partners LP (TSE:BPY/UN.TO) Seasonal Chart

Rogers Corp. (NYSE:ROG) Seasonal Chart

Bank of Marin (NASD:BMRC) Seasonal Chart

 

 

The Markets

Stocks dipped in the Thursday session as buyers stepped back from their bullish stance in the technology sector.  The S&P 500 Index closed lower by a third of one percent as the benchmark continues to struggle below psychological resistance at 4400.  Short-term support at the rising 20-day moving average remains unviolated.  Momentum indicators continue to roll over emphasizing the waning buying demand in the short-term for broad equity positions.  While these technical indicators still show characteristics of a bullish trend, the trading activity is giving the appearance of a short-term top.  A peak in the market at the present time would be right on point with the average seasonal timeline, which typically sees the height of the average summer rally by the 17th of July and the start of the most volatile period for stocks.  The trend of the market remains that of higher-highs and higher-lows over multiple timeframes, therefore any pullback/retracement that is realized in the intermediate-term is likely to be short-lived and/or shallow, barring any unforeseen event.

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

• Weekly jobless claims and the health of the labor market
• Natural gas inventories and how we are playing the commodity
• US Industrial Production
• Manufacturer sentiment

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Sentiment on Thursday, 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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