Equity Clock

Stock Market Outlook for August 23, 2021

Let’s look at some key technical indicators after the week that was.

 

 

 

*** 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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Aflac, Inc. (NYSE:AFL) Seasonal Chart

National Instruments Corp. (NASD:NATI) Seasonal Chart

Infinity Pharmaceuticals, Inc. (NASD:INFI) Seasonal Chart

Dr. Reddy’s Laboratories Ltd (NYSE:RDY) Seasonal Chart

Data I/O Corp. (NASD:DAIO) Seasonal Chart

Citizens Financial Group Inc. (NYSE:CFG) Seasonal Chart

Cathay Bancorp, Inc. (NASD:CATY) Seasonal Chart

Harte Gold Corp (TSE:HRT.TO) Seasonal Chart

SPDR MFS Systematic Core Equity ETF (AMEX:SYE) Seasonal Chart

Taro Pharmaceutical Industries Ltd. (NYSE:TARO) Seasonal Chart

Heico Corp. (NYSE:HEI) Seasonal Chart

Korea Fund, Inc. (NYSE:KF) Seasonal Chart

Ferro Corp. (NYSE:FOE) Seasonal Chart

Sierra Metals Inc.. (TSE:SMT.TO) Seasonal Chart

West Bancorporation, Inc. (NASD:WTBA) Seasonal Chart

Descartes Systems Group Inc. (NASD:DSGX) Seasonal Chart

American Airlines Group Inc. (NASD:AAL) Seasonal Chart

US Global Jets ETF (AMEX:JETS) Seasonal Chart

Invesco BuyBack Achievers ETF (NASD:PKW) Seasonal Chart

Direxion Daily 20+ Year Treasury Bear 3x Shares (NYSE:TMV) Seasonal Chart

 

 

The Markets

Stocks rebounded on Friday as dip-buyers once again showed their willingness to buy levels of intermediate support.  The S&P 500 Index gained eight-tenths of one percent, rebounding from intermediate support and the lower limit of its rising trend channel around the rising 50-day moving average.  MACD and RSI continue to hold above their middle lines, characteristic of a bullish trend.  Still, the fact that the market has been unable to make any progress in the upper half its approximately 200-point trading range between 4350 and 4550 indicates that the momentum in the market has been struggling.  For now, intermediate support at the 50-day continues to be the hurdle to contend with, but any break of this variable barrier to the rising intermediate-term trend or, more importantly, the July low at 4233, would likely lead to a quick washout lower.  Of course, volatility and erratic trading are all too common for this time time of year, but this is not reason to be fearful of the market at this time, but rather opportunistic as it can lead to great buying opportunities ahead of the Fall and the best six months of the year for stocks between November and April.

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

• Weekly look at the large-cap benchmark
• Running down indications of breadth, looking for signs of the stable footing that we are seeking
• The Bond-Stock Ratio just hit an important juncture
• The US Dollar
• Canadian Retail Sales and what is driving the activity

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Sentiment on Friday, as gauged by the put-call ratio ended closed to neutral at 0.91.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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