Stock Market Outlook for December 12, 2024
The time is here to be bullish on Energy.
*** 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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BMO S&P/TSX Equal Weight Oil & Gas Index ETF (TSE:ZEO.TO) Seasonal Chart
High Arctic Energy Services Trust (TSE:HWO.TO) Seasonal Chart
Imperial Metals Corp. (TSE:III.TO) Seasonal Chart
CRH, PLC (NYSE:CRH) Seasonal Chart
Avino Silver & Gold Mines Ltd. (AMEX:ASM) Seasonal Chart
PLDT Inc. (NYSE:PHI) Seasonal Chart
EQ Inc. (TSXV:EQ.V) Seasonal Chart
Russel Metals, Inc. (TSE:RUS.TO) Seasonal Chart
Equinox Gold Corp. (TSE:EQX.TO) Seasonal Chart
iShares Canadian Financial Monthly Income ETF (TSE:FIE.TO) Seasonal Chart
iShares Canadian Select Dividend Index ETF (TSE:XDV.TO) Seasonal Chart
The Markets
Stocks jumped on Wednesday following the release of an as expected consumer price index for November, a result that enticed investors to ramp up expectations for a rate cut at the Fed’s next meeting. The S&P 500 Index closed higher by just over eight-tenths of one percent, reaching back towards recent highs charted around 6100. Support at the 20-day moving average (6000) continues to underpin this market, keeping the market positioned to buy upon each test. A short-term upside gap has been opened between 6045 and 6060, defining another point of support below the market to keep it on a positive tilt. On a intermediate-term basis, there remains greater evidence of support than resistance, presenting the desired backdrop for strength that is normally realized in the market at year-end. Major moving averages are all pointed higher and momentum indicators continue to gyrate above their middle lines, providing characteristics of a bullish trend. Our list of candidates in the market to Accumulate and to Avoid remains well positioned to benefit from the strength that is filtering into the market at this seasonally strong time of year, but we will scrutinize whether any changes are required as the price action evolves.
Today, in our Market Outlook to subscribers, we discuss the following:
- US Consumer Price Index (CPI) and the investment implications within
- The reaction of the bond market to November’s inflation result
- The start of the optimal holding period for the energy sector
- Demand and supply dynamics in the energy market
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.73.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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