Equity Clock

Stock Market Outlook for December 8, 2021

Mind the gaps!

 

 

 

*** 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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Hess Corp. (NYSE:HES) Seasonal Chart

Aecon Group Inc. (TSE:ARE.TO) Seasonal Chart

Plains All American Pipeline, LP (NYSE:PAA) Seasonal Chart

ShawCor Ltd. (TSE:SCL.TO) Seasonal Chart

Invesco FTSE RAFI Canadian Index ETF (TSE:PXC.TO) Seasonal Chart

Wajax Corp. (TSE:WJX.TO) Seasonal Chart

American Hotel Income Properties REIT LP (TSE:HOT/UN.TO) Seasonal Chart

iShares S&P/TSX Completion Index ETF (TSE:XMD.TO) Seasonal Chart

iShares Edge MSCI Min Vol Canada Index ETF (TSE:XMV.TO) Seasonal Chart

Invesco DB Silver Fund (NYSE:DBS) Seasonal Chart

iShares Europe ETF (NYSE:IEV) Seasonal Chart

iShares North American Natural Resources ETF (NYSE:IGE) Seasonal Chart

Aberdeen Standard Physical Platinum Shares ETF (NYSE:PPLT) Seasonal Chart

Energy Select Sector SPDR Fund (NYSE:XLE) Seasonal Chart

 

 

The Markets

Stocks snapped-back for a second day as investors set aside concerns pertaining to the Omicron variant, which had spooked the market over the past week.  The S&P 500 Index rallied by over 2%, led by stocks in the technology and energy sectors.  The large-cap benchmark broke back above short-term resistance at its declining 20-day moving average and is now reaching back towards horizontal resistance around the all-time high above 4700.  Momentum indicators are curling higher, rebounding from the oversold levels charted in the past week.  Support at the 50-day moving average remains intact and the intermediate trend remains positive, conducive to being constructive in seasonal bets.

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

• The gap higher on the large-cap benchmark and the break of the short-term trend of lower-lows and lower-highs
• Gap fills on the Materials, Industrials, and Energy ETFs
• The one sector that is holding below its downside gap and the reason for caution
• Upside gaps for the Utilities, Staples, REITs, Discretionary, Technology, and Communication Services ETFs
• Monitoring the chart of Junk Bonds relative to Investment Grade Corporates
• The Canadian Dollar
• Canada International Merchandise Trade: What is driving activity on the export side and a trade to take advantage of a dominant trend.
• Cautious investor sentiment

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Sentiment on Tuesday, as gauged by the put-call ratio, ended close to neutral at 0.95.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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