Stock Market Outlook for July 10, 2024
Scrutiny over how Bitcoin and Ethereum reacts to horizontal support is prudent given the threat a breakdown would have on the broader crypto market and risk assets (stocks), overall.
*** 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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Capital Power Corp. (TSE:CPX.TO) Seasonal Chart
iShares Core Growth ETF Portfolio (TSE:XGRO.TO) Seasonal Chart
VanEck Vectors Egypt Index ETF (NYSE:EGPT) Seasonal Chart
Vanguard Financials ETF (NYSE:VFH) Seasonal Chart
CSW Industrials, Inc. (NASD:CSWI) Seasonal Chart
iShares Currency Hedged MSCI EAFE Small-Cap ETF (AMEX:HSCZ) Seasonal Chart
WisdomTree Japan Hedged SmallCap Equity Fund (NASD:DXJS) Seasonal Chart
PCB Bancorp (NASD:PCB) Seasonal Chart
The Markets
The grind higher in equity prices attributed to the summer rally period continues as the S&P 500 Index charts yet another record closing high. The large-cap benchmark added just less than a tenth of one percent amidst an uptick in bank stocks, even as the technology sector took a bit of a pause. Successful tests of the 20, 50, and 100-day moving averages since April have defined these hurdles as support, keeping the benchmark on this positive slope heading through the middle of the year. Any type of negative divergences compared to price previously that provided hints of buying exhaustion have been eliminated as previous declining trendline resistance on MACD moves into a position of support. Characteristics of a bullish trend persist, even as the Relative Strength Index (RSI) reaches further into overbought territory above 70. Just over a week remains in this positive mid-year timeframe for stocks that has acted as the catalyst to break the benchmark out of its short-term consolidation span between 5445 and 5500 and there is nothing yet to suggest that we have seen the peak for this mid-year move higher. The period of average volatility follows, spanning the remainder of the third quarter, therefore planning out stops on current holdings may be prudent to assure that risk mitigation efforts through August, September, and October are deployed effectively while looking for the opportunity to overweight bond market allocations.
Today, in our Market Outlook to subscribers, we discuss the following:
- Cryptocurrency market at a pivotal point, a breakdown of which would place pressure on risk assets
- US Construction Spending and construction stocks
- Insurance industry during this period of seasonal weakness
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for July 10
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Sentiment on Tuesday, as gauged by the put-call ratio, ended slightly bullish at 0.89.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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