Stock Market Outlook for November 22, 2023
Just as headline prints of consumer prices alleviate, it may be the time to consider inflation hedges for portfolios.
*** 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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MFS Intermediate High Income Fund (NYSE:CIF) Seasonal Chart
SPDR S&P Bank ETF (NYSE:KBE) Seasonal Chart
Invesco WilderHill Clean Energy ETF (NYSE:PBW) Seasonal Chart
Cohen & Steers Quality Income Realty Fund Inc. (NYSE:RQI) Seasonal Chart
Talon Metals Corp. (TSE:TLO.TO) Seasonal Chart
Redfin Corp (NASD:RDFN) Seasonal Chart
Sunstone Hotel Investors, Inc. (NYSE:SHO) Seasonal Chart
Core Laboratories N V (NYSE:CLB) Seasonal Chart
Brandywine Realty Trust (NYSE:BDN) Seasonal Chart
Bombardier Inc. (TSE:BBD/B.TO) Seasonal Chart
Acadia Pharmaceuticals Inc. (NASD:ACAD) Seasonal Chart
Ark Restaurants Corp. (NASD:ARKR) Seasonal Chart
The Markets
Stocks traded mildly lower on Tuesday as traders start to digest the strength recorded in recent days. The S&P 500 Index slipped by a mere two-tenths of one percent, trading within the span of the prior day’s session. It would take a break below Monday’s low at 4510 to suggest a shift of the short-term rising trend that has benefited prices since the end of October. The Relative Strength Index has fallen out of overbought territory above 70 and the MACD histogram continues to narrow, which are typically considered near-term sell signals. There is nothing wrong with the intermediate path of stocks, which is supported by rising major moving averages, but a digestion in the near-term seems almost inevitable, particularly as the market gets into the tax-loss selling period in the first half of December. Levels down to the 50-day moving average at 4342 are fair game on a retracement move, but this would provide a more ideal setup to participate in the traditional Santa Claus rally that starts in a month from now. Yields and the dollar have stepped back from their positions as headwinds that burdened equity prices between July and October and, so long as these influences do not re-flare, reason to maintain a positive intermediate/seasonal view of stocks exists.
Today, in our Market Outlook to subscribers, we discuss the following:
- US Existing Home Sales
- Canada Consumer Price Index (CPI)
- Portfolio inflation protection
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for November 22
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bearish at 1.11.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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