Stock Market Outlook for June 7, 2024
Watch the reaction of the US Dollar Index following the release of May’s payroll results given that the positive tilt of the currency has recently been acting as a headwind against stocks.
*** 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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Target Corp. (NYSE:TGT) Seasonal Chart
Verizon Communications (NYSE:VZ) Seasonal Chart
Centrais Eletricas Brasileiras SA (NYSE:EBR) Seasonal Chart
Murphy USA Inc. (NYSE:MUSA) Seasonal Chart
Vanguard Extended Duration Treasury ETF (NYSE:EDV) Seasonal Chart
Global X Nasdaq 100 Covered Call ETF (NASD:QYLD) Seasonal Chart
iShares Evolved U.S. Discretionary Spending ETF (AMEX:IEDI) Seasonal Chart
T2 Metals Corp. (TSXV:TWO.V) Seasonal Chart
BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) Seasonal Chart
Bristol Gate Concentrated US Equity ETF (TSE:BGU.TO) Seasonal Chart
Dynamic iShares Active U.S. Dividend (TSE:DXU.TO) Seasonal Chart
Dynamic iShares Active Global Dividend ETF (TSE:DXG.TO) Seasonal Chart
Xcel Energy (NASD:XEL) Seasonal Chart
iShares Global Comm Services ETF (NYSE:IXP) Seasonal Chart
iShares Long-Term Corporate Bond ETF (AMEX:IGLB) Seasonal Chart
The Markets
Stocks closed little changed on Thursday as traders await the always important monthly payroll report that is slated to be released on Friday. The S&P 500 Index ended lower by a mere two basis points (0.02%), remaining pinned to record-high territory. The benchmark continues find support at the 50-day moving average (5188), forcing traders to move up their stops from the more intermediate-term support at the 100-day moving average (5107). MACD has abruptly crossed back above its signal line (a buy signal), but the divergence versus price that this momentum indicator is showing highlights the lack of buying demand around these heights. Beyond the first few days of June, seasonal tendencies for stocks tends to flip negative for the mean-reversion/portfolio rebalance period that dominates through the middle/end of the month, making this period ahead an inopportune time to be aggressive in risk (stocks). Traders can look to use weakness through the weeks ahead to add back risk for the summer rally period that follows through the month of July.
Today, in our Market Outlook to subscribers, we discuss the following:
- Lacklustre market breadth
- Weekly jobless claims and the health of the labor market
- A look ahead to May’s Non-Farm Payroll report
- Watching the US Dollar Index
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for June 7
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Sentiment on Thursday, as gauged by the put-call ratio, ended neutral at 0.98.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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