Stock Market Outlook for March 25, 2022
The stability of Bitcoin is seen as a positive for risk assets in this market rebound, but we still need to see a break above $45,000 in order to place it back on our list of market segments to accumulate.
*** 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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Henry Schein, Inc. (NASD:HSIC) Seasonal Chart
Worthington Industries, Inc. (NYSE:WOR) Seasonal Chart
AZZ, Inc. (NYSE:AZZ) Seasonal Chart
Coupa Software Inc. (NASD:COUP) Seasonal Chart
CALAMOS Convertible Opportunities and Income Fund (NASD:CHI) Seasonal Chart
iShares Core S&P U.S. Total Market Index ETF (CAD-Hedged) (TSE:XUH.TO) Seasonal Chart
Primo Water Corporation (TSE:PRMW.TO) Seasonal Chart
Principal Real Estate Income Fund (NYSE:PGZ) Seasonal Chart
Ford Motor Co. (NYSE:F) Seasonal Chart
Eagle Pharmaceuticals, Inc. (NASD:EGRX) Seasonal Chart
Weight Watchers Intl Inc. (NASD:WW) Seasonal Chart
CarParts.com (NASD:PRTS) Seasonal Chart
Linamar Corp. (TSE:LNR.TO) Seasonal Chart
Magna International Inc. (NYSE:MGA) Seasonal Chart
The Markets
Stocks rebounded on Thursday as the mean reversion into quarter end continues. The S&P 500 Index gained 1.43%, bouncing back above its 200-day moving average and making progress towards its declining 100-day moving average. Momentum indicators are still pointing higher from the rebound that has taken place over the past week and a half and they have broken above declining trendline resistance that highlighted escalating selling pressures since November. The MACD histogram is starting to struggle, hinting of a near-term peak. This could similarly lead to a stalling of the near-term buying demand in the equity market stemming from the March 14th low. We are in the final days of the quarter and the mean-reversion move is arguably reaching maturity, although we don’t currently have indication that the bears are set to sink their teeth back into the market, particularly with end-of-quarter window dressing, start of quarter inflows, and the start of earnings season directly ahead.
Today, in our Market Outlook to subscribers, we discuss the following:
- The Invesco QQQ Trust (QQQ)
- The rebound of Semiconductor stocks
- Narrowing consolidation range on the chart of Bitcoin
- Weekly jobless claims and the health of the labor market/economy
- Natural gas inventories and the seasonal trade in the commodity
- US Durable Goods Orders
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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.83.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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