Stock Market Outlook for November 15, 2023
With the bearish thesis breaking down, portfolio managers may be forced to neutralize negative bets further through the weeks 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
High Income Securities Fund (NYSE:PCF) Seasonal Chart
Algonquin Power & Utilities Corp. (NYSE:AQN) Seasonal Chart
iShares S&P/TSX Capped Information Technology Index ETF (TSE:XIT.TO) Seasonal Chart
Clough Global Opportunities Fund (AMEX:GLO) Seasonal Chart
iShares U.S. Consumer Goods ETF (NYSE:IYK) Seasonal Chart
GSE Systems, Inc. (NASD:GVP) Seasonal Chart
Schwab US Large-Cap ETF (NYSE:SCHX) Seasonal Chart
Canfor Corp. (TSE:CFP.TO) Seasonal Chart
Skechers Usa, Inc. (NYSE:SKX) Seasonal Chart
Pilgrims Pride Corp. (NASD:PPC) Seasonal Chart
Teck Resources Ltd. (TSE:TECK/B.TO) Seasonal Chart
Veeco Instruments, Inc. (NASD:VECO) Seasonal Chart
Lennar Corp. (NYSE:LEN) Seasonal Chart
High Liner Foods Inc. (TSE:HLF.TO) Seasonal Chart
The Markets
Stocks rallied on Tuesday amidst a cooler than expected read on inflationary pressures in the economy, providing investors with the perception that the Fed’s work combating the cost of living crisis is done. The S&P 500 Index jumped by 1.91%, moving higher from recently broken resistance at its 50-day moving average and opening a gap at 4425. The gap hurdle creates a new level of support below the benchmark as levels of resistance become fewer the higher that prices climb. The next hurdles on the upside to monitor are the September high around 4540 and then the July peak around 4600, levels that are within arm’s reach following Tuesday gain. This is clearly a market that is showing greater respect to levels of support than levels of resistance, which is characteristic of a bull market trend. Prices are closing in on overbought territory with the Relative Strength Index (RSI) knocking on the door of 70, but the market is not providing any favors to get in at more desirable levels as short-term seasonal tendencies suggest should occur through the middle of November. Normally, start of November strength typically gives way to digestion of the gains through the middle of the month, followed by the return of strength around the US Thanksgiving holiday weeks. At this point, portfolio managers seem to be racing to get in at any price after become overly bearish coming into this seasonally strong month, overall, for equity market performance. All that we need to be concerned of in our intermediate-term/seasonal perspective is that horizontal support in the range of 4100 to 4200 holds and that has been our bet into year-end. A significant improvement of risk sentiment keeps the upside bias into year-end firmly intact and starts to alleviate our concern, for now, pertaining to the sustainability of the advance into year-end.
Today, in our Market Outlook to subscribers, we discuss the following:
- Bearish thesis that the market had held on to is breaking down
- Equal Weight S&P 500 Index
- The rollover of the US Dollar Index
- US Consumer Price Index (CPI)
- The big ask for the market to deliver on the deflationary pressures that are normal in November and December
- Investor sentiment
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for November 15
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 close to neutral at 0.97.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
