Stock Market Outlook for December 13, 2023
Election years typically see below average growth in consumer prices amidst weak commodity market performance through the back half of the year.
*** 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 Global Clean Energy ETF (NYSE:PBD) Seasonal Chart
Invesco DWA Basic Materials Momentum ETF (NASD:PYZ) Seasonal Chart
Invesco S&P MidCap Momentum ETF (AMEX:XMMO) Seasonal Chart
Cipher Pharmaceuticals Inc. (TSE:CPH.TO) Seasonal Chart
Comerica, Inc. (NYSE:CMA) Seasonal Chart
Eastman Chemical Co. (NYSE:EMN) Seasonal Chart
Canaccord Financial Inc. (TSE:CF.TO) Seasonal Chart
Teleflex, Inc. (NYSE:TFX) Seasonal Chart
Penn National Gaming, Inc. (NASD:PENN) Seasonal Chart
Equity Commonwealth REIT (NYSE:EQC) Seasonal Chart
Knight Therapeutics Inc. (TSE:GUD.TO) Seasonal Chart
iShares U.S. Small Cap Index ETF (CAD-Hedged) (TSE:XSU.TO) Seasonal Chart
The Markets
Stocks continued to claw their way higher on Tuesday following the release of the Consumer Price Index for November. The S&P 500 Index closed higher by just less than five-tenths of one percent, progressing further above resistance at the July high of 4600. The Relative Strength Index (RSI) remains firmly embedded in overbought territory above 70 and MACD is still elevated around the highs of the year. Despite this being the traditional tax-loss selling period and the weakest half of December, investors are not yet willing to let up on this end of year push that began abruptly at the end of October. Short-term risks remain before we get into the traditional Santa Claus rally timeframe, but the intermediate path of the benchmark remains well supported and does not appear at risk until we get into the new year. The last FOMC announcement of the year will be released on Wednesday, an event that threatens to present a near-term pivot point to market direction.
Today, in our Market Outlook to subscribers, we discuss the following:
- Complacency creeping higher alongside equity prices
- US Consumer Price Index (CPI) and our desired places to position as pricing pressures alleviate
- Election Year tendency for consumer prices
- Election Year tendency for Gold: when you should be exposed and when you should not
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for December 13
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 neutral at 0.96.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
