Stock Market Outlook for October 11, 2023
Signs of upside exhaustion in the US Dollar and interest rates is allowing what can at least be considered to be an oversold bounce in stocks.
*** 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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ManpowerGroup (NYSE:MAN) Seasonal Chart
Chemed Corp. (NYSE:CHE) Seasonal Chart
Orocobre Ltd. (TSE:ORL.TO) Seasonal Chart
Axon Enterprise, Inc. (NASD:AXON) Seasonal Chart
The Markets
Stocks closed higher on Tuesday amidst a sharp reversal in interest rates that is removing the headwind that had burdened the equity market for the past couple of months. The S&P 500 Index closed with a gain of just over half of one percent, moving higher from the significant band of support, along with the 200-day moving average, at 4200. The benchmark instantly finds itself in the midst of short and intermediate resistance at the 20 and 50-day moving averages at 4344 and 4414, respectively. The intermediate path of stocks since the July peak can still be deemed as that of lower-highs and lower-lows, which adds to our concerns pertaining to the sustainability of the oversold rebound from the significant band of support at 4200, however, the horizontal hurdle provides too enticing of a risk-reward to pass on to add to equity exposure in portfolios. Scrutinizing the market’s reaction to the potential levels of resistance overhead as we near the start of the best six months of the year for stocks at the end of October will be prudent to assure that recent buying demand has the longevity to thrive. The direction of rates and the dollar remain important.
Today, in our Market Outlook to subscribers, we discuss the following:
- Rates and the Dollar
- The recovery of defensive equity sectors from their oversold lows
- Health care
- Our weekly chart books update: Find out which segments of the market warrant Accumulating and those that should be Avoided
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- Currencies
- Cryptocurrencies
- Commodities
- Major Benchmarks
- Sub-sectors / Industries
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Sentiment on Tuesday, as gauged by the put-call ratio, ended close to neutral at 0.96.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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