Equity Clock

Stock Market Outlook for December 31, 2021

We continue to endure with our equity allocation during this Santa Claus rally period, but we can find reason to take a hard look at risk metrics in the portfolio at the start of 2022.

 

 

 

*** 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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Alto Ingredients Inc (NASD:ALTO) Seasonal Chart

Goldman Sachs Hedge Industry VIP ETF (AMEX:GVIP) Seasonal Chart

Northrop Grumman Corp. (NYSE:NOC) Seasonal Chart

Semtech Corp. (NASD:SMTC) Seasonal Chart

Ruths Chris Steak House Inc. (NASD:RUTH) Seasonal Chart

Gentherm Inc. (NASD:THRM) Seasonal Chart

Genetic Technologies Ltd. (NASD:GENE) Seasonal Chart

CASI Pharmaceuticals, Inc. (NASD:CASI) Seasonal Chart

Intelligent Systems Corp. (AMEX:INS) Seasonal Chart

BMO China Equity Index ETF (TSE:ZCH.TO) Seasonal Chart

KraneShares CSI China Internet ETF (AMEX:KWEB) Seasonal Chart

VanEck Vectors Semiconductor ETF (NYSE:SMH) Seasonal Chart

 

 

 

The Markets

Stocks closed lower on Thursday after selling off in the last hour of trade.  The S&P 500 Index closed down by three-tenths of one percent, turning down from short-term resistance around 4800.  Short-term support at 4780 was tested by the closing bell.  The benchmark remains above previous significant resistance around 4720, a hurdle that is now in a position of support.  The pattern being charted this week resembles a bull-flag, which is a continuation pattern that could lead to another shot higher by the time the Santa Claus rally period concludes early next week.  However, after a strong run already recorded, we wont hold our breath waiting for this outcome.  As has been portrayed in our reports, we have concerns for the market early in the new year, but this is just speculation at present and we will let the data dictate how we actually react.

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

• Concerns amongst the market advance-decline lines
• Weekly Jobless claims and the health of the labor market
• Natural gas inventories and when the next opportunity to take on exposure will arrive

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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.85.

 

 

 

 

Seasonal charts of companies reporting earnings today:

•  No significant earnings scheduled for today.

 

S&P 500 Index

 

 

TSE Composite

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