Stock Market Outlook for October 8, 2024
Bond prices and rate sensitive sectors may be rolling over from significantly overbought levels, but their rising intermediate-term trends are far from being broken.
*** 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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Titan Medical Inc. (TSE:TMD.TO) Seasonal Chart
Forsys Metals Corp. (TSE:FSY.TO) Seasonal Chart
Visteon Corp. (NASD:VC) Seasonal Chart
Invesco Dynamic Market ETF (NYSE:BMVP) Seasonal Chart
The Markets
Stocks slipped on Monday as investors brace for the potential impact from a retaliatory strike on Iran following last week’s missile bombardment of Israel. The S&P 500 Index closed down nearly one percent, pulling back toward previous resistance, now support at 5669, along with the 20-day moving average that is presently hovering around the same level. Waning upside momentum remains apparent as MACD has crossed back below its signal line, giving up on the positive slope that had been apparent over the past few weeks. A lack of excitement in stocks is still apparent with the benchmark above former resistance at 5650. Fortunately, levels of support below remain plentiful, including the aforementioned horizontal hurdle, as well as major moving averages that are all positively sloped, giving the market some comfort in this still uncertain backdrop, both seasonally and fundamentally. Seasonality still gives an edge to a cautious view of stocks in the near-term, particularly given the evidence of near-term upside exhaustion, and we are still looking towards a retracement lower to provide a reset before the normal end-of-year rally commences.
Today, in our Market Outlook to subscribers, we discuss the following:
- The rollover of bond prices and interest rate sensitive sectors from overbought territory
- The rise of the VIX and the downfall of the short volatility trade
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- Other Notes
- Investor Sentiment
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Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
- Currencies
- Cryptocurrencies
- Commodities
- Major Benchmarks
- Sub-sectors / Industries
- ETFs: Bonds | Commodities | Equity Markets | Industries | Sectors
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Sentiment on Monday, as gauged by the put-call ratio, ended overly bullish at 0.70.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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