Stock Market Outlook for February 14, 2022
The three prongs to our approach (seasonal, technical, and fundamental) are unaligned and this has warranted us to take action in our portfolio.
*** 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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SS & C Technologies Holdings Inc. (NASD:SSNC) Seasonal Chart
Global X FTSE Portugal 20 ETF (AMEX:PGAL) Seasonal Chart
Element Solutions Inc. (NYSE:ESI) Seasonal Chart
Molson Coors Brewing Co. (NYSE:TAP) Seasonal Chart
Genpact Ltd. (NYSE:G) Seasonal Chart
EXACT Sciences Corp. (NASD:EXAS) Seasonal Chart
Pearson PLC (NYSE:PSO) Seasonal Chart
Xcel Energy (NASD:XEL) Seasonal Chart
EQT Corp. (NYSE:EQT) Seasonal Chart
Thomson Reuters Corp. (TSE:TRI.TO) Seasonal Chart
Forward Air Corp. (NASD:FWRD) Seasonal Chart
Forrester Research, Inc. (NASD:FORR) Seasonal Chart
Canadian Tire Corp, Ltd. (TSE:CTC/A.TO) Seasonal Chart
WisdomTree Europe Hedged Equity Fund (NYSE:HEDJ) Seasonal Chart
iShares Global Consumer Staples ETF (NYSE:KXI) Seasonal Chart
The Markets
Stocks sold off sharply on Friday as fears emerged that Russia would soon invade Ukraine. The S&P 500 Index dropped by 1.90%, breaking back below 20 and 200-day moving averages. The appearance of a lower intermediate high can be seen on the daily chart as the hallmarks of a head-and-shoulders topping pattern becomes apparent. Momentum indicators are rolling over again and characteristics of a bearish trend remain intact. Horizontal support just below 4300 is the next major hurdle, now representing the neckline of the text-book topping pattern. Downside potential upon a breach of this limit could be significant.
Today, in our Market Outlook to subscribers, we discuss the following:
- The misalignment of the three prongs to our approach and what we’re doing about it
- Weekly look at the large-cap benchmark
- The rebound in the change of driving directions
- Lowest level of Consumer Sentiment in over a decade and how the equity market performed the last time it fell this low
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Sentiment on Friday, as gauged by the put-call ratio, ended bearish at 1.15.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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