Stock Market Outlook for April 10, 2024
The market is seeing a rotation away from some of the former growth (technology) darlings, but there are segments within this universe to continue to focus on as we transition into the off-season for stocks between May and October.
*** 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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MannKind Corp. (NASD:MNKD) Seasonal Chart
Gladstone Capital Corp. (NASD:GLAD) Seasonal Chart
Trinity Biotech PLC (NASD:TRIB) Seasonal Chart
Inspired Entertainment, Inc. (NASD:INSE) Seasonal Chart
Minim Inc. (NASD:MINM) Seasonal Chart
The Markets
Stocks wobbled on Tuesday as traders positioned themselves for the release of the important Consumer Price Index (CPI) for March, slated to be released before Wednesday’s opening bell. The S&P 500 Index closed with a gain of just over a tenth of one percent, shaking off earlier weakness and continuing to cling to the 20-day moving average (5199), often a neutral position ahead of an uncertain event. A bit of a digestive pattern can be seen on the chart as the benchmark alleviates some of the overbought condition that had been built up in the intermediate-term trend, but evidence of a bullish path persists with moving averages expanding above one another and momentum indicators holding firm above their middle lines. It is unlikely that the results of the inflation reports to be released in the days ahead will alter the bullish skew that that has dominated since October. Near-term downside risks can be pegged to the rising 50-day moving average (5095) and to the upside open gap that was charted following the NVDIA surge in February between 4983 and 5038, barring some catalyst to the contrary. There is nothing that the chart is indicating presently to suggest altering our positive view of risk according to our intermediate-term/seasonal approach. The middle of the month tends to see another thrust higher in prices around the Investment Retirement Account (IRA) contribution deadline and the desire to to remain exposed to this tendency. Equal weight exposure to the benchmark (eg. S&P 500 Equal Weight ETF – RSP) continues to be preferred over the capitalization-weighted equivalent (eg. S&P 500 ETF – SPY) given the stability that has materialized in the relative trend between the two.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly MACD Sell Signal on the Dow Jones Industrial Average
- REIT Sector
- Fading relative trend of the Technology sector
- Internet and Semiconductor industries
- Communication Services Sector
- Cybersecurity industry
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bearish at 1.05.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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