Equity Clock

Stock Market Outlook for January 10, 2022

A weak start to the year doesn’t necessarily mean that further losses are a given.

 

 

 

*** 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:

Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.

ETFIS Series Trust I Reaves Utilities ETF (AMEX:UTES) Seasonal Chart

Gap, Inc. (NYSE:GPS) Seasonal Chart

Kohls Corp. (NYSE:KSS) Seasonal Chart

Cinemark Holdings Corp. (NYSE:CNK) Seasonal Chart

Owens & Minor Inc. Holding Co. (NYSE:OMI) Seasonal Chart

True Blue Inc. (NYSE:TBI) Seasonal Chart

Invesco Water Resources ETF (NASD:PHO) Seasonal Chart

Power Corp. Of Canada (TSE:POW.TO) Seasonal Chart

Thomson Reuters Corp. (NYSE:TRI) Seasonal Chart

 

 

The Markets

Stocks closed lower to end the week as the selloff in the technology sector continued.  The S&P 500 Index lost four-tenths of one percent, closing around the rising 50-day moving average that hovers at 4674.  Momentum indicators continue to rollover as the relative strength index (RSI) moves back below its middle line.  Both MACD and RSI are showing a negative divergences versus price, failing to confirm December’s breakout above resistance at 4720.  The intermediate-term trend is still that of higher-highs and higher-lows, but with the rising 50-day moving average being pressured, this path is certainly at risk.  The fact that the benchmark closed around the lows of the week doesn’t instil any confidence that the selloff to start the year is over.

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

• The major negative divergence on the weekly chart of the S&P 500 Index
• Waning bullish enthusiasm of investment managers
• “As goes January, so goes the year”
• Best December growth for US payrolls since 1999
• Wages and the inflationary backdrop in the economy
• Canada Labour Force Survey and the breakdown of what is driving the aggregate result
• The Canadian Dollar

Subscribe now and we’ll send this outlook to you.

Sentiment on Friday, as gauged by the put-call ratio, ended close to neutral at 0.96.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...