Stock Market Outlook for August 29, 2022
In markets that are showing greater signs of resistance than support, seeking the opposite is typically prudent.
*** 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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First Asset US & Canada Lifeco Income ETF (TSE:FLI.TO) Seasonal Chart
Albemarle Corp. (NYSE:ALB) Seasonal Chart
Tata Motors Ltd. (NYSE:TTM) Seasonal Chart
Thor Industries, Inc. (NYSE:THO) Seasonal Chart
Msc Industrial Direct Co. (NYSE:MSM) Seasonal Chart
Goodfood Market Corp. (TSE:FOOD.TO) Seasonal Chart
Invesco BuyBack Achievers ETF (NASD:PKW) Seasonal Chart
iShares Currency Hedged MSCI ACWI ex U.S. ETF (AMEX:HAWX) Seasonal Chart
The Markets
Stocks plunged on Friday as investors assessed Fed Chair Jerome Powell’s view of the path of monetary policy. The S&P 500 Index shed 3.37%, turning lower from gap resistance charted earlier this week between 4195 and 4218 and closing back below horizontal support at 4170. The downfall from this short-term hurdle continues the path of digestion from the summer rally that began in June, a retracement that is seen likely to test the rising 50-day moving average in the weeks ahead. That hurdle now sits at 3996. Momentum indicators continue to point lower, rolling over from some of the most overbought levels since November. Still, momentum indicators have shed their characteristics of a bearish trend that had remained persistent through the first half of the year and the suggestion remains that the intermediate path of the market has shifted positive, until proven otherwise. Keep in mind, levels down to around the 50-day moving average and even the June low at 3636 are fair game, which could cause some concern in the near-term. We have not just sat on our hands during this period, but rather took off risk in the Super Simple Seasonal Portfolio a week ago in order to mitigate the threat that this suspected near-term retracement would impose. Our desire is to still look for that higher significant low above the June bottom to ramp up risk again.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- The change we are enacting in the Super Simple Seasonal Portfolio
- Some of the riskiest segments of the market confirming resistance around 20 and 50-day moving averages
- Segments of the market showing more signs of support than resistance
- US International Trade
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for August 29
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Sentiment on Friday, as gauged by the put-call ratio, ended bearish at 1.10.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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