Demand for energy commodities is picking up ahead of the spring and summer driving season, maintaining a bullish bias for the price of Oil and Gas through the months ahead.

Stock Market Outlook for March 7, 2024

Demand for energy commodities is picking up ahead of the spring and summer driving season, maintaining a bullish bias for the price of Oil and Gas through the months ahead.

Real Time Economic Calendar provided by Investing.com.

*** 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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Newell Brands Inc. (NASD:NWL) Seasonal Chart

Lululemon Athletica Inc. (NASD:LULU) Seasonal Chart

Gartner Group, Inc. (NYSE:IT) Seasonal Chart

Mueller Water Products Inc. (NYSE:MWA) Seasonal Chart

TransAct Technologies, Inc. (NASD:TACT) Seasonal Chart

Fidelity MSCI Consumer Discretionary Index ETF (AMEX:FDIS) Seasonal Chart

Dell Technologies, Inc. (NYSE:DELL) Seasonal Chart

Y-mAbs Therapeutics, Inc. (NASD:YMAB) Seasonal Chart

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The Markets

Stocks snapped back, slightly, from Tuesday’s selloff as traders continue to look for rotation candidates in the market amidst the ongoing rising intermediate path of prices. The S&P 500 Index closed higher by just over half of one percent, charting a rather indecisive doji candlestick around the prior session’s downside gap between 5110 and 5129. The more significant of the gaps remains unfilled between 4983 and 5038, acting as a zone to support the market in the short-term as it works to digest the strength in many of the inflated growth sectors that have elevated equity prices to this point. Negative momentum divergences with respect to MACD and RSI highlight the waning buying demand around these heights, but while this lends itself to a near-term pullback, we are far from realizing a breakdown that could have intermediate implications that would have a direct impact on desired equity weightings according to our seasonal approach. Portfolio rebalancing is expected to dominate the market through the month of March before the quarter comes to a close, potentially burdening some of this year’s leaders (eg. technology), while benefiting the laggards (eg. bonds). On the other side of this portfolio rebalance period comes the fund inflows that are notorious in April for the start of the new quarter and contributions to individual retirement accounts (IRA) ahead of the deadline mid-month.

Today, in our Market Outlook to subscribers, we discuss the following:

Oil/Gas Supply and Demand

The seasonal trade in the energy sector

Job Openings and Labor Turnover Survey (JOLTS)

US Construction Spending and the trade in infrastructure

The jump in put option volumes into the closing hours of Wednesday’s trade

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