Equity Clock

Stock Market Outlook for August 12, 2021

While prices of a wide range of goods are rising well above average, this one industry is showing a record decline in prices, which forms the basis of our short call in this stock.

 

 

 

*** 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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Compass Minerals Intl, Inc. (NYSE:CMP) Seasonal Chart

Matrix Service Co. (NASD:MTRX) Seasonal Chart

Scripps E W Co. (NASD:SSP) Seasonal Chart

WildBrain Ltd (TSE:WILD.TO) Seasonal Chart

Univar Inc. (NYSE:UNVR) Seasonal Chart

 

 

The Markets

Stocks closed marginally higher on Wednesday as the rotation into core-cyclical bets of the market continues.  The S&P 500 Index gained a quarter of one percent, once again realizing this push-pull between growth and value stocks.  The large-cap benchmark continues to maintain this slight grind higher, remaining around the mid-point to its approximately 200-point trading range that spans between 4350 and 4550.  Short-term support at the rising 20-day moving average can be pegged at 4391, while intermediate support at the 50-day now stands at 4321.  The grind, while positive, has not been enough to relinquish the negative divergences seen with respect to MACD and RSI, a sign of waning buying demand.  The market has remained resilient, thus far, during this period of volatility for stocks and, as long as investors have a place to rotate to in order to find opportunities, it can continue to mitigate the impact of this erratic timeframe.

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

• US Petroleum Status and our fundamental view of the energy sector
• How to trade Oil
• Energy Exploration and Production ETF (XOP)
• US Consumer Price Index (CPI) and the surge in prices of a wide range of goods
• The industry where prices are falling at a rapid pace: What has us desiring to short it and the levels to watch

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Sentiment on Wednesday, as gauged by the put-call ratio, ended neutral at 0.98.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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