Stock Market Outlook for August 23, 2023
Ratio of bonds over stocks reaching an interesting juncture, one that could be signalling a notable peak in the equity market.
*** 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
Invesco S&P SmallCap Materials ETF (NASD:PSCM) Seasonal Chart
Vanguard Industrials ETF (NYSE:VIS) Seasonal Chart
Vermilion Energy Inc. (TSE:VET.TO) Seasonal Chart
American Airlines Group Inc. (NASD:AAL) Seasonal Chart
Sanmina Corp. (NASD:SANM) Seasonal Chart
Kemper Corp. (NYSE:KMPR) Seasonal Chart
Toro Co. (NYSE:TTC) Seasonal Chart
The Markets
Stocks slipped on Tuesday as investors attempt to gain a footing following the pullback in the market that has spanned the month of August, thus far. The S&P 500 Index closed down by just less than three-tenths of one percent, remaining below resistance implied by the 20 and 50-day moving averages. Momentum indicators continue to show signs of bottoming in the short-term as the Full Stochastic Oscillator emerged from oversold territory below 20. MACD and RSI remain below their middle lines, struggling to recoup the characteristics of a bullish trend that had been persistent since April. Levels down to the June breakout point at 4200 remain fair game as part of this period of normal volatility/weakness for the market during August and September, but a short-term reprieve in the selling pressures is being sought surrounding the normally upbeat Labor day holiday timeframe. Money managers will be taking their final vacations of the summer in the days ahead and will avoid holding any offside/bearish bets while away from their desks. The weakest time of the year for stocks spanning the last couple of weeks of September is still ahead.
Today, in our Market Outlook to subscribers, we discuss the following:
- The performance of bonds over stocks
- The correlation of treasury yields to the strength of economic data beats
- US Existing Home Sales
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for August 23
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
Sentiment on Tuesday, as gauged by the put-call ratio, ended slightly bullish at 0.92.
Seasonal charts of companies reporting earnings today: 
S&P 500 Index
TSE Composite
| Sponsored By... |
|
