Stock Market Outlook for October 17, 2024
Strength in the banks bodes well for small-cap equities.
*** 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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Customers Bancorp, Inc. (NYSE:CUBI) Seasonal Chart
Tinka Resources Ltd. (TSXV:TK.V) Seasonal Chart
Zedge, Inc. (AMEX:ZDGE) Seasonal Chart
iShares U.S. Industrials ETF (NYSE:IYJ) Seasonal Chart
DREAM Unlimited Corp. (TSE:DRM.TO) Seasonal Chart
Magna Intl, Inc. (TSE:MG.TO) Seasonal Chart
Tapestry, Inc. (NYSE:TPR) Seasonal Chart
Matthews International Corporation (NASD:MATW) Seasonal Chart
Domino’s Pizza Group LTD (NYSE:DPZ) Seasonal Chart
Exchange Income Corp. (TSE:EIF.TO) Seasonal Chart
National Bank of Canada (TSE:NA.TO) Seasonal Chart
Teradyne, Inc. (NASD:TER) Seasonal Chart
Dover Corp. (NYSE:DOV) Seasonal Chart
BMO Equal Weight U.S. Banks Hedged to CAD Index ETF (TSE:ZUB.TO) Seasonal Chart
The Markets
Stocks ticked higher on Wednesday as traders remain upbeat from the results received from earnings, thus far. The S&P 500 Index closed higher by around half of one percent, charting an inside candlestick within the prior day’s range. Support continues to be pinned at previous resistance of 5669, along with the 20-day moving average that is hovering around 5752. Despite evidence of waning upside momentum within this tail-end to the period of seasonal volatility for stocks, this market is showing greater evidence of support than resistance, a characteristic of a bullish trend. We continue to like the groups that are on our growing list of Accumulate candidates, but there are certainly segments of the market to Avoid. The ability of the market, as a whole, to overcome the period of seasonal weakness for stocks rather unscathed is certainly telling of the relentless demand that has supported the benchmark, despite the fact that the risk-reward, broadly, is not very attractive. The start of the best six months of the year for stocks is just a couple of weeks away and there is a need from a seasonal perspective to ramp up risk exposure at some point.
Today, in our Market Outlook to subscribers, we discuss the following:
- Strength in the Banks bodes well for small-cap equities
- Canada Manufacturing Sales
- Pharmaceutical stocks
- The trends of shipping volumes and expenditures
- Transportation stocks and Dow Theory
- Retail ETF testing significant horizontal resistance
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.89.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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