Equity Clock

Stock Market Outlook for July 22, 2021

The price of Bitcoin continues to trade within a descending triangle pattern.  Find out how to trade it 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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Newell Brands Inc. (NASD:NWL) Seasonal Chart

Air Canada (TSE:AC.TO) Seasonal Chart

Assurant Inc. (NYSE:AIZ) Seasonal Chart

Gallagher Arthur J & Co. (NYSE:AJG) Seasonal Chart

BMO S&P/TSX Equal Weight Banks Index ETF (TSE:ZEB.TO) Seasonal Chart

ProShares UltraShort Australian Dollar (NYSE:CROC) Seasonal Chart

Bank of Commerce Holdings (NASD:BOCH) Seasonal Chart

First Bancorp (NASD:FBNC) Seasonal Chart

First Interstate BancSystem Inc. (NASD:FIBK) Seasonal Chart

Renasant Corp. (NASD:RNST) Seasonal Chart

Nokia Corp. (NYSE:NOK) Seasonal Chart

BMO Short Federal Bond Index ETF (TSE:ZFS.TO) Seasonal Chart

IQ Merger Arbitrage ETF (NYSE:MNA) Seasonal Chart

PIMCO Intermediate Municipal Bond Active ETF (NYSE:MUNI) Seasonal Chart

ALPS Sector Dividend Dogs ETF (AMEX:SDOG) Seasonal Chart

 

 

The Markets

Stocks continued to rally back from recent declines as the bears show signs of quickly losing their grip amidst the onslaught of earnings that have been and are slated to be released through the days ahead.  The S&P 500 Index gained just over eight-tenths of one percent, adding to the prior session’s rally and quickly turning the return on the week to a gain.  The intermediate-term trend of higher-highs and higher-lows, supported by the rising 50-day moving average, remains intact.  The limits of the rising trend channel can be seen around 4275 and 4475, but, while the path of the market is still higher, the fact that the benchmark has been spending more time in the lower half of the rising span than the upper half is indication that the momentum is waning.  Of course, reaction to earnings could always change that, but, just analyzing the price action that we see today, the fact that the benchmark has spent the past two months predominantly around the lower limit of the range is indication that this market has become tired as the trend has matured.  Activity like this is typically a precursor to a broader market pullback.  Momentum indicators, while having rolled over in recent days, are still showing characteristics of a bullish trend, holding predominantly above their middle lines.

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

• Action in the market that is frustrating both the bulls and the bears: The retracement in treasury bond prices on Tuesday
• How to trade the descending triangle pattern on the price of Bitcoin
• US Petroleum Inventories
• The price of oil and the expected path ahead

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.86.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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