Stock Market Outlook for March 13, 2024
Inflation hedges still looking good as consumer prices continue to come in stronger than average.
*** 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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WisdomTree New Economy Real Estate Fund (NYSE:WTRE) Seasonal Chart
WisdomTree Europe Quality Dividend Growth Fund (AMEX:EUDG) Seasonal Chart
Target Hospitality Corp. (NASD:TH) Seasonal Chart
MongoDB, Inc. (NASD:MDB) Seasonal Chart
Goldman Sachs ActiveBeta International Equity ETF (AMEX:GSIE) Seasonal Chart
iShares MSCI International Developed Quality Factor ETF (AMEX:IQLT) Seasonal Chart
Invesco S&P International Developed Quality ETF (AMEX:IDHQ) Seasonal Chart
iShares MSCI EAFE Growth ETF (NYSE:EFG) Seasonal Chart
Cable One, Inc. (NYSE:CABO) Seasonal Chart
SunOpta, Inc. (TSE:SOY.TO) Seasonal Chart
SAP SE (NYSE:SAP) Seasonal Chart
The Markets
A positive reaction to earnings from Oracle (ORCL) reignited the technology/Artificial Intelligence (AI) trade on Tuesday as traders shook off concerns pertaining to a hotter then expected read of inflation in the economy. The S&P 500 Index closed with a gain of 1.12%, reaching back to the all-time intraday high charted on Friday at 5189. The benchmark has shown indecision at these heights, particularly since levels around 5200 align with the target that analysts have expected the benchmark to close at as of the end of the year. Short-term support remains well defined around the rising 20-day moving average (5073), but what keeps us concerned about the prospects of the capitalization weighted benchmark in the near-term (before the end of the first quarter) is the negative momentum divergences versus price, indicative of waning buying demand. The intermediate (multi-month) path of the benchmark is still definitively positive and the logical timeframe to realize a correction of substance is during the off-season for stocks between May and October, but a digestion of the the strength in some of the leadership groups over the past few months still appears reasonable before the quarter comes to a close. The enthusiasm surrounding the Artificial Intelligence (AI) race remains the wild card in any normal/healthy digestion of strength that has been expected. A more equal weight sector allocation to the equity market is still the preferred exposure through the weeks ahead.
Today, in our Market Outlook to subscribers, we discuss the following:
- US Consumer Price Index (CPI), including the sectors of the market to focus on in this inflationary backdrop
- Treasury Inflation Protected Securities (TIPS)
- Gold and Gold Miners
- Commodity Tracking Fund
- Copper
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bearish at 1.06.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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