Stock Market Outlook for July 31, 2024
Volatility hedges are in demand, outperforming the broader market.
*** 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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United Rentals, Inc. (NYSE:URI) Seasonal Chart
Brookfield Infrastructure Partners L.P. (TSE:BIP/UN.TO) Seasonal Chart
ASGN Inc. (NYSE:ASGN) Seasonal Chart
BMO US Put Write ETF (TSE:ZPW.TO) Seasonal Chart
The Markets
Stocks closed fairly mixed on Tuesday in a rather volatile session as traders await earnings and the FOMC announcement in the days ahead. The large-cap benchmark closed with a loss of half of one percent, closing right around the 50-day moving average (5442), a rather neutral position ahead of the uncertain events to come. Gap resistance remains overhead between 5508 and 5550, just one of multiple layers that are in a position to cap the benchmark as we get further into the period of volatility for stocks in August, September, and October. The 20-day moving average (5541) has started to rollover, providing another hurdle on the upside that is in a position to cap the benchmark in the near-term. MACD is dipping negative, joining the Relative Strength Index (RSI) below the mid-point of their ranges as the momentum indicators start to lose their characteristics of a bullish trend. Defensive assets and volatility hedges are certainly preferred at this time of year.
Today, in our Market Outlook to subscribers, we discuss the following:
- Intermediate-term treasury bonds
- Dividend stocks
- Job Openings and Labor Turnover Survey (JOLTS)
- US Home Prices
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bearish at 1.04.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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