Stock Market Outlook for March 25, 2024
Economic indicators that were expressing weakness last year are highlighting strength early into 2024, a result that portends to rotation to some of the areas of the equity market that have lagged.
*** 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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Via Renewables, Inc. (NASD:VIA) Seasonal Chart
Ollie’s Bargain Outlet Holdings Inc. (NASD:OLLI) Seasonal Chart
Amazon.com, Inc. (NASD:AMZN) Seasonal Chart
Penske Automotive Group Inc (NYSE:PAG) Seasonal Chart
Kelt Exploration Ltd. (TSE:KEL.TO) Seasonal Chart
Discover Financial Services (NYSE:DFS) Seasonal Chart
Mid-America Apartment Communities Inc. (NYSE:MAA) Seasonal Chart
LKQ Corp. (NASD:LKQ) Seasonal Chart
Pentair, Inc. (NYSE:PNR) Seasonal Chart
Resmed, Inc. (NYSE:RMD) Seasonal Chart
Merit Medical Systems, Inc. (NASD:MMSI) Seasonal Chart
The Markets
Stocks slipped slightly on Friday as traders took a breather following another week of strength. The S&p 500 Index closed down by just over a tenth of one percent, remaining within arm’s reach of the all-time highs charted in recent days. Short-term support remains well defined at the 20-day moving average (5140), keeping the grind higher in prices that has been observed this year on a positive slope heading into the strength that is normal for the month of April. Negative divergences with respect to MACD and RSI are not going away, highlighting the waning interest of portfolio managers to buy at these market heights, but this has yet to turn off the flow of funds into stocks. The rise in prices has remained orderly and has yet to provide indications of excess, despite the seemingly overvalued state of price-earnings multiples. Sentiment will be an important guide for seasonal investors as we transition into the spring and head towards the off-season for stocks that normally starts in May; further strength, as per seasonal norms, through the month ahead resulting in indications of complacency could be the cue to ratchet back risk exposure given the vulnerability that would imposed to the rising trajectory. With many still skeptical of the sustainability of the market strength, the chase for performance and the grind higher in prices can be expected to continue.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- Examining the amount of fuel left in the tank for stocks
- Canadian Retail Sales and the strength of discretionary spending
- The jump in Shipping Volumes for February
- Railroad and Trucking stocks
- Investor sentiment
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for March 25
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Sentiment on Friday, as gauged by the put-call ratio, ended overly bearish at 1.30.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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