Stock Market Outlook for December 28, 2023
While the dollar and yields continue to sink lower, the positive impact they are imposing on stocks is becoming weaker.
*** 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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Emerging Markets Internet and eCommerce ETF (AMEX:EMQQ) Seasonal Chart
VanEck Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) Seasonal Chart
iShares TIPS Bond ETF (NYSE:TIP) Seasonal Chart
SPDR S&P Oil & Gas Equipment & Services ETF (NYSE:XES) Seasonal Chart
GoldMoney Inc. (TSE:XAU.TO) Seasonal Chart
Blackstone Group Inc. (NYSE:BX) Seasonal Chart
Forward Industries, Inc. (NASD:FORD) Seasonal Chart
Innovative Solutions & Support Inc. (NASD:ISSC) Seasonal Chart
Piedmont Lithium Limited (NASD:PLL) Seasonal Chart
The Markets
Stocks remained supported in the Wednesday session as another push lower in the US Dollar and the level of interest rates buoyed investor enthusiasm for stocks heading into the end of the year. The S&p 500 Index closed with a gain of just over a tenth of one percent, charting a fresh 52-week high and pushing closer to significant resistance at the all-time high of 4800. While momentum indicators remain overbought, there is indication that a rollover from overbought extremes is being attempted, a move that is likely to precede the much needed pullback in prices in order to reinvigorate buying demand for the next upside thrust in the market. Support remains plentiful below present levels, including major moving averages and previous horiz0ntal resistance at 4600, providing many points below the benchmark to catch it should it fall. The traditional Santa Claus rally has just over a week left before a tougher period for equity market performance begins, seasonally, in January. There is certainly no reason to bet against the positive seasonal trend here, implying remaining near fully allocated in stocks and bonds remains prudent.
Today, in our Market Outlook to subscribers, we discuss the following:
- The weakening influence on stock prices from the declining dollar and yields
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- The change of home prices in the US and the reason for the bifurcation in the trends across the country
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bearish at 1.13.
Seasonal charts of companies reporting earnings today:
- No Significant Earnings Scheduled for Today
S&P 500 Index
TSE Composite
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