Stock Market Outlook for March 5, 2024
Breadth in the market is expanding and so too is our list of market segments to Accumulate.
*** 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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Citigroup, Inc. (NYSE:C) Seasonal Chart
Kadant Inc. (NYSE:KAI) Seasonal Chart
SenesTech, Inc. (NASD:SNES) Seasonal Chart
Orezone Gold Corp. (TSE:ORE.TO) Seasonal Chart
John Wiley & Sons, Inc. (NYSE:WLY) Seasonal Chart
The Markets
Stocks ended mixed to start the week as traders look for rotation candidates in portfolios now that breadth in the market appears to be expanding. The S&P 500 Index closed down by just over a tenth of one percent after bordering on either side of the flat-line intraday. Very early evidence of indecision can be picked out around 5148, a level that, if you recall, was our initial upside target based on the breakout from the 100-point consolidation range between 4948 and 5048 (see our Market Outlook for February 23rd). Short-term support can continue to be pegged at the rising 20-day moving average, now at 5032, a level that aligns with the upper limit to the upside open gap that was charted following the NVIDIA surge. While both MACD and RSI have curled higher from that late February jump, the negative divergences that both are portraying versus price so far this year is indicative of buying exhaustion as traders start to scrutinize the strength in technology and communication services holdings. The positive intermediate-term rising path of the benchmark remains solid, but rotation from some of the growth leaders that have elevated the market to this point could be sufficient to lead to some digestion of capitalization-weighted benchmarks before the first quarter is complete. This should be viewed as an opportunity and not a threat: see our expanded list of Accumulate candidates.
Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
- Currencies
- Cryptocurrencies
- Commodities
- Major Benchmarks
- Sub-sectors / Industries
- ETFs: Bonds | Commodities | Equity Markets | Industries | Sectors
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Today, in our Market Outlook to subscribers, we discuss the following:
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- Utilities sector
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for March 5
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Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.86.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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