Stock Market Outlook for October 10, 2022
The trends of employment continue to point to the degradation of the consumer economy, something that threatens an economic recession in the year(s) ahead.
*** 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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Triton International Ltd. (NYSE:TRTN) Seasonal Chart
Principal Value ETF (NASD:PY) Seasonal Chart
John Hancock Multifactor Materials ETF (AMEX:JHMA) Seasonal Chart
SPDR S&P Transportation ETF (NYSE:XTN) Seasonal Chart
ProShares Ultra Financials (NYSE:UYG) Seasonal Chart
Invesco S&P MidCap 400 Pure Growth ETF (NYSE:RFG) Seasonal Chart
Invesco Dynamic Market ETF (NYSE:PWC) Seasonal Chart
iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI) Seasonal Chart
InterActiveCorp (NASD:IAC) Seasonal Chart
ASML Holding NV (NASD:ASML) Seasonal Chart
International Paper Co. (NYSE:IP) Seasonal Chart
Deutsche Bank AG (NYSE:DB) Seasonal Chart
Hyatt Hotels Corp. (NYSE:H) Seasonal Chart
Ameriprise Financial Inc. (NYSE:AMP) Seasonal Chart
Loews Corp. (NYSE:L) Seasonal Chart
Maxar Technologies Ltd. (TSE:MAXR.TO) Seasonal Chart
Morgan Stanley (NYSE:MS) Seasonal Chart
Xilinx, Inc. (NASD:XLNX) Seasonal Chart
The Markets
Stocks ended the week on a sour note as a stronger than expected payroll report for September stoked renewed fears that the Fed would continue to aggressively raise rates for the foreseeable future. The S&P 500 Index slid by 2.80%, closing right at the June low that has been so pivotal to the market over the past couple of months. Momentum indicators are quickly losing any positivity that had been derived by early week strength, although MACD has yet to cross back below its signal line in what would amount to a renewed sell signal. Characteristics of a bearish trend remain firmly entrenched. Friday’s downfall gaps back below the upside gap that was charted on Tuesday at 3700, emphasizing the significance of this zone and what was a level to shoot off of on the long side now becomes a hurdle to shoot off of on the short side. Major moving averages remain in positions of resistance, including the 20-day moving average at 3782 and, more importantly, the 50-day at 3985. As has been highlighted, using the major moving averages to sell into in order to lighten up on equity exposure remains the prudent course of action until the intermediate path of the market definitively shifts. Friday’s gap lower has once again confirmed that this is a market that is more willing to ignore levels of support while holding firm at levels of resistance, which is not the technical backdrop to be aggressive in portfolio positioning.
Today, in our Market Outlook to subscribers, we discuss the following:
- The ongoing evolution of lower-lows and lower-highs in the bond market and the critical test one bond ETF
- The action being taken in the Super Simple Seasonal Portfolio
- US Employment Situation and what the data indicates is actually occurring in the economy
- Canada Labour Force Survey and the area of strength that continues to present opportunity for investment portfolios
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for October 10
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Sentiment on Friday, as gauged by the put-call ratio, ended bearish at 1.04.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled for today
S&P 500 Index
TSE Composite
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