Stock Market Outlook for December 15, 2023
Between the middle of December and the end of February, the TSX Composite has outperformed the S&P 500 Index by around 250 basis points (2.5%), supported by the period of seasonal strength in Gold, Energy, and Canadian Banks.
*** 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.
Darden Restaurants, Inc. (NYSE:DRI) Seasonal Chart
Power Corp. Of Canada (TSE:POW.TO) Seasonal Chart
Suncor Energy, Inc. (TSE:SU.TO) Seasonal Chart
Cooper Cos. Inc. (NYSE:COO) Seasonal Chart
Asanko Gold Inc. (TSE:AKG.TO) Seasonal Chart
Paramount Resources Ltd. (TSE:POU.TO) Seasonal Chart
Sienna Senior Living Inc. (TSE:SIA.TO) Seasonal Chart
AllianceBernstein Holding LP (NYSE:AB) Seasonal Chart
Comstock Mining Inc. (AMEX:LODE) Seasonal Chart
Toronto Dominion Bank (NYSE:TD) Seasonal Chart
B2Gold Corp. (NYSE:BTG) Seasonal Chart
Imperial Oil Ltd. (AMEX:IMO) Seasonal Chart
Jacobs Engineering Group Inc. (NYSE:J) Seasonal Chart
Osisko Gold Royalties Ltd. (TSE:OR.TO) Seasonal Chart
Vanguard FTSE Canada All Cap Index ETF (TSE:VCN.TO) Seasonal Chart
iShares S&P/TSX Small Cap Index ETF (TSE:XCS.TO) Seasonal Chart
iShares S&P/TSX Capped Materials Index ETF (TSE:XMA.TO) Seasonal Chart
BMO S&P/TSX Equal Weight Global Gold Index ETF (TSE:ZGD.TO) Seasonal Chart
VanEck Vectors Gold Miners ETF (NYSE:GDX) Seasonal Chart
iShares Currency Hedged MSCI Emerging Markets ETF (AMEX:HEEM) Seasonal Chart
iShares Global Materials ETF (NYSE:MXI) Seasonal Chart
The Markets
Stocks continue to make their push back to record-high territory amidst the ongoing alleviation of interest rate headwinds. The S&P 500 Index closed higher by slightly more than a quarter of one percent, charting a rather indecisive doji candlestick following the sharp jump recorded in the previous session. The benchmark remains the most overbought according to the Relative Strength Index (RSI) since September of 2020, leaving the market open to the risk of a near-term check-back as hesitation to commit new funds sets in. Previous resistance at 4600 now joins the large number of points of support below this market that will be working to keep the positive intermediate-term path intact through year end. It is fair to expect that some of the gains that are normal of the Santa Claus rally period at year-end have been pulled forward into the traditional tax-loss selling period, something that may curtail the positivity that starts to materialize starting around the middle of the month, but there is nothing to suggest that we cannot continue to see the draw towards the previous peak in the market around 4800 once the end of year rally is complete. It is difficult to add new funds to stocks at these heights, but there is certainly nothing to suggest selling. The start of next year could be another story, however.
Today, in our Market Outlook to subscribers, we discuss the following:
- The start of the period of seasonal strength for Canadian stocks
- Canadian Small-Cap
- US Retail Sales and the US Retail ETF
- The tendency for Retail Sales in Election years
- Weekly Jobless Claims and the health of the labor market
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for December 15
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.15.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
