Stock Market Outlook for December 18, 2024
Evidence of a discerning consumer mentality remains readily apparent this holiday season, but better days could be ahead if post-election year tendencies prove to be correct.
*** 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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iShares MSCI Canada ETF (NYSE:EWC) Seasonal Chart
Life & Banc Split Corp. (TSE:LBS.TO) Seasonal Chart
Adams Natural Resources Fund, Inc. (NYSE:PEO) Seasonal Chart
SPDR Dow Jones International Real Estate ETF (NYSE:RWX) Seasonal Chart
SPDR S&P Oil & Gas Equipment & Services ETF (NYSE:XES) Seasonal Chart
Invesco S&P MidCap Quality ETF (AMEX:XMHQ) Seasonal Chart
Bengal Energy Ltd. (TSE:BNG.TO) Seasonal Chart
Climb Global Solutions, Inc. (NASD:CLMB) Seasonal Chart
Petroleo Brasileiro (Petrobras) (NYSE:PBR) Seasonal Chart
InterRent Real Estate Investment Trust (TSE:IIP/UN.TO) Seasonal Chart
Sprott Inc. (TSE:SII.TO) Seasonal Chart
EchoStar Holding Corp. (NASD:SATS) Seasonal Chart
North American Construction Group Ltd (TSE:NOA.TO) Seasonal Chart
Celestica, Inc. (NYSE:CLS) Seasonal Chart
Suncor Energy, Inc. (NYSE:SU) Seasonal Chart
Rocky Brands Inc. (NASD:RCKY) Seasonal Chart
The Markets
Stocks closed mildly lower on Tuesday, giving up Monday’s gain, as the sideways trading range that the S&P 500 Index has been in through the first half of the month continues. The large-cap benchmark ended lower by nearly four-tenths of one percent, holding just below the recent high charted around 6100. Support at the 20-day moving average (6027) continues to underpin this market, keeping the market positioned to buy upon each test. Horizontal support can be pegged at 6035, forming the basis of the near-term trading range with the cap to the sideways span coming in at the aforementioned hurdle of 6100. A violation of this range would suggest a move of the same magnitude of the prevailing 65-point span (eg. 6165 to the upside, 5970 on the downside). The positive tendencies for the market over the next few weeks give the bias towards an upside resolution. 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 Retail Sales
- Tendencies for consumer spending during post-election years
- The above average increase of retailer inventories this year
- Visa Spending Momentum Index
- The technicals behind the Retail ETF
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.81.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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