Stock Market Outlook for April 25, 2024
Ratio of the Utilities sector versus the Transportation industry reaching up to trend-channel resistance, a breakout from which would define a risk-averse market backdrop, a normal phenomenon during 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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Blackbaud Inc. (NASD:BLKB) Seasonal Chart
Westport Fuel Systems Inc. (NASD:WPRT) Seasonal Chart
Baozun Inc. (NASD:BZUN) Seasonal Chart
BNY Mellon Strategic Municipals, Inc. (NYSE:LEO) Seasonal Chart
Falcon Gold Corp. (TSXV:FG.V) Seasonal Chart
Atlassian Corp. (NASD:TEAM) Seasonal Chart
Fat Brands, Inc (NASD:FAT) Seasonal Chart
The Markets
Stocks closed mixed on Wednesday as traders remain focused on earnings reports expected to be released in the days ahead. The S&P 5oo Index closed with a gain of a mere two basis points (0.02%), continuing to move above support at the 100-day (20-week) moving average and encroaching back on resistance at the 20-day moving average at 5133. Momentum indicators have curled higher, alongside price, reaching back towards the mid-point of their ranges, presenting a critical test as to whether or not characteristics of a bullish trend that dominated between November and March have been lost. The fact that moving averages across all spectrums are no longer expanding above one another raises concerns that the market is setting up for a weaker period ahead as the off-season for stocks gets set to begin in just under a week and a half from now. There remains reason to continue to bet on the positive intermediate-term trend of the equity market while we allow the price action to prove itself that a path of higher-highs and higher-lows is no longer intact and our list of Accumulate candidates still far outnumbers those areas to Avoid, but a defensive shift has developed that we must be cognizant of given the negative implications it imposes on the prevailing path.
Today, in our Market Outlook to subscribers, we discuss the following:
- The ratio of Utilities over Transports
- US Durable Goods Orders and the areas of the manufacturing economy that are flourishing, along with how to position for them
- Canada Retail Sales
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Sentiment on Wednesday, as gauged by the put-call ratio, ended around neutral at 0.94.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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