Equity Clock

Stock Market Outlook for December 23, 2021

Reallocating the portfolio in stocks, commodities, and bonds for the Santa Claus Rally.

 

 

*** 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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New Gold Inc. (TSE:NGD.TO) Seasonal Chart

TJX Cos., Inc. (NYSE:TJX) Seasonal Chart

American Eagle Outfitters, Inc. (NYSE:AEO) Seasonal Chart

BHP Group Limited (NYSE:BHP) Seasonal Chart

Barclays Plc (NYSE:BCS) Seasonal Chart

Sprott Inc. (NYSE:SII) Seasonal Chart

SPDR Gold Shares (NYSE:GLD) Seasonal Chart

iShares Silver Trust (NYSE:SLV) Seasonal Chart

ETFMG Alternative Harvest ETF (NYSE:MJ) Seasonal Chart

SPDR S&P Internet ETF (AMEX:XWEB) Seasonal Chart

 

 

The Markets

Stocks strengthened for a second day, quickly shaking off early week jitters attributed to the spread of COVID ahead of the holidays.  The S&P 500 Index closed with a gain of just over 1%, moving firmly above its 20-day moving average and reaching back to former resistance at 4700.  Momentum indicators continue to show a downward slope, but, gradually, many of the technical developments that threatened the intermediate-term trend at the start of the week are being taken off the table.  The zone of short-term resistance between 4585 and 4615 has been surpassed.  On the hourly chart, the 200-hour moving average has been broken.  The benchmark has held firm around 50 and 100-day moving averages and the threat of a path of lower-lows and lower-highs below the end of November peak around 4743 has not materialized.  An ascending triangle pattern could be argued, which would result in the continuation of the rising intermediate path.  A break above former resistance at 4700 would confirm.

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

• The reallocation of the Super Simple Portfolio for the Santa Claus Rally
• The optimal holding period for the bond market
• Commodities perking up
• Silver and Gold entering their optimal holding periods
• FANG+ Trade
• Auto stocks
• US Existing Home Sales
• US Petroleum Inventories

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.81.

 

 

Seasonal charts of companies reporting earnings today:

• No significant earnings scheduled for today

 

 

S&P 500 Index

 

TSE Composite

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