Stock Market Outlook for March 31, 2022
Demand for petroleum products has fallen sharply since the middle of February as the high cost of fuel forces consumers to reconsider their driving habits.
*** 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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SL Green Realty Corp. (NYSE:SLG) Seasonal Chart
Virtus Investment Partners, Inc. (NASD:VRTS) Seasonal Chart
Tenneco Automotive (NYSE:TEN) Seasonal Chart
Pretium Resources Inc. (TSE:PVG.TO) Seasonal Chart
The Markets
Stocks slipped in the second to last session of the first quarter as the mean-reversion trade into quarter-end takes a breather. The S&P 500 Index shed just over six-tenths of one percent, trading back to the upside open gap that was charted in the previous session around 4600. Momentum indicators are still pointed higher, however, there still remains hints of stalling, such as the MACD histogram, which has essentially moved sideways for the past week. Major moving averages are all in positions of support, including the 200-day at 4482 and the 50-day at 4411. The market remains in this zone of significant supply between 4600 and 4800, but this won’t matter unless the market were to peak again below 4800, enticing this supply to hit the market. Seasonally, the month of April is typically a very strong month for equity market performance and, while the risk-reward of the market has shifted since the tremendous buying opportunity for stocks seen in the middle of March, we don’t have any reason, as of present, to expect this historically strong period ahead will not play out.
Soon to be released…
We are busy putting the finishing touches on our monthly report for April, which breaks down everything that you need to know for the month(s) ahead. Subscribers can look for this report in their inbox on Thursday.
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Today, in our Market Outlook to subscribers, we discuss the following:
- The selloff of consumer discretionary and technology names and the areas that you should readopt for portfolio allocations heading into the new month
- The action that we are taking in the Super Simple Seasonal Portfolio
- The troubling technicals for Bank stocks
- US Petroleum Inventories and Demand
- The trends of Margin Debt and leverage in the market
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.86.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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