Stock Market Outlook for July 8, 2022
The reset of the price of Natural Gas and the ongoing favourable fundamental backdrop is providing us another shot to gain exposure to this commodity.
*** 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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CYREN Ltd. (NASD:CYRN) Seasonal Chart
Technology Select Sector SPDR Fund (NYSE:XLK) Seasonal Chart
WisdomTree Japan Hedged SmallCap Equity Fund (NASD:DXJS) Seasonal Chart
Goldman Sachs Group, Inc. (NYSE:GS) Seasonal Chart
Innergex Renewable Energy Inc. (TSE:INE.TO) Seasonal Chart
Booz Allen Hamilton Holding Corp. (NYSE:BAH) Seasonal Chart
SPDR S&P Dividend ETF (NYSE:SDY) Seasonal Chart
Hewlett Packard Enterprise Co. (NYSE:HPE) Seasonal Chart
The Markets
Stocks posted strong gains on Thursday as traders start to neutralize negative bets given the waning downside momentum observed in recent days/weeks. The S&P 500 Index closed higher by 1.50%, retaking levels above its declining 20-day moving average for the first time since the start of June. Declining trendline resistance, representing the upper limit to a declining wedge pattern, was tested at the highs of the day around 3900 as the intermediate path of lower-lows and lower-highs is put to the test. A definitive break above this hurdle could unleash a massive mean reversion move as the overwhelming negative sentiment that has prevailed over the past few weeks is unwound. Friday’s payroll report and the latest read of consumer prices via the Consumer Price Index report for June, slated to be released next week, will have a lot to say about the direction of stocks heading into the third quarter. While the summer rally period for stocks typically persists through the first few weeks of July, stocks can start to falter beyond the first week of the month of July, warranting a heighten level of alertness as we venture more towards the middle of the month and the start of earnings season. Evidence of waning downside pressures can continue to be picked out on the chart, often a precursor event to a turning point of the negative trend of the market.
Today, in our Market Outlook to subscribers, we discuss the following:
- The gravitation back towards growth in the market
- Weekly jobless claims and the health of the labor market
- A look ahead to the Non-Farm Payroll report for June
- Natural Gas
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for July 8
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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.82.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled for today
S&P 500 Index
TSE Composite
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