Stock Market Outlook for April 14, 2022
Shipping volumes remained sluggish through the month of March, presenting a warning for the health of the broader economy.
*** 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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OGE Energy Corp. (NYSE:OGE) Seasonal Chart
Cato Corp. (NYSE:CATO) Seasonal Chart
Alimentation Couche-Tard, Inc. (TSE:ATD/A.TO) Seasonal Chart
General Dynamics Corp. (NYSE:GD) Seasonal Chart
Meta Financial Group, Inc. (NASD:CASH) Seasonal Chart
Invesco S&P SmallCap 600 Pure Growth ETF (NYSE:RZG) Seasonal Chart
The Markets
Stocks rebounded from recent weakness as investors ploughed back into some of the re-opening plays in the market following upbeat earnings from Delta Airlines on Wednesday. The S&P 500 Index jumped by 1.12%, moving back above its 50-day moving average and reaching towards gap resistance that was charted following Monday’s open between 4465 and 4480. Levels below the 20 and 200-day moving averages, as well as the aforementioned gap, remain in positions of resistance overhead. The rollover in momentum indicators is showing slight signs of stalling as they struggle to hold the rising trends that have been intact since January. Should momentum indicators, including RSI and MACD, hold their ground above their middle lines, it would start to derive bullish characteristics following months of technical indicators leaning bearish. Seasonally, stocks tend to remain supported through the month of April, therefore it would be difficult to fuel a waterfall plunge in stocks, similar to January and February, amidst this favourable backdrop, but the strength in the month does not diminish the potential to see the weakness that we have speculated for the back half of the second quarter (May/June).
Today, in our Market Outlook to subscribers, we discuss the following:
- The reopening trade in our model portfolio
- US Producer Price Index (PPI)
- Sluggish shipping metrics for March
- Transportation stocks
- US Petroleum Inventories and Demand
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Sentiment on Wednesday, as gauged by the put-call ratio, ended slightly bullish at 0.91.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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