Stock Market Outlook for December 30, 2024
There is a saying that when “Santa fails to call, bears may come to Broad & Wall.” With stocks struggling this Santa Claus rally period, we could find out what this means.
*** 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
iShares 7-10 Year Treasury Bond ETF (NASD:IEF) Seasonal Chart
iShares U.S. Energy ETF (NYSE:IYE) Seasonal Chart
iShares TIPS Bond ETF (NYSE:TIP) Seasonal Chart
Foraco International SA (TSE:FAR.TO) Seasonal Chart
Piedmont Lithium Limited (NASD:PLL) Seasonal Chart
Thermo Fisher Scientific Inc. (NYSE:TMO) Seasonal Chart
Blackstone Group Inc. (NYSE:BX) Seasonal Chart
Forward Industries, Inc. (NASD:FORD) Seasonal Chart
BIO-key, Intl, Inc. (NASD:BKYI) Seasonal Chart
Biomerica, Inc. (NASD:BMRA) Seasonal Chart
Yum China Holdings, Inc. (NYSE:YUMC) Seasonal Chart
Chicago Rivet & Machine Co. (AMEX:CVR) Seasonal Chart
Cummins Inc. (NYSE:CMI) Seasonal Chart
Northrop Grumman Corp. (NYSE:NOC) Seasonal Chart
Paysign, Inc. (NASD:PAYS) Seasonal Chart
MediciNova Inc. (NASD:MNOV) Seasonal Chart
Franco-Nevada Corp. (TSE:FNV.TO) Seasonal Chart
Sturm Ruger & Co., Inc. (NYSE:RGR) Seasonal Chart
Golden Ocean Group Limited (NASD:GOGL) Seasonal Chart
Star Bulk Carriers Corp. (NASD:SBLK) Seasonal Chart
The Markets
Last minute portfolio rebalancing before the year comes to a close was sufficient to take a bite out of US equities during Friday’s session. The S&P 500 Index ended lower by 1.11%, reaching back to the 50-day moving average (5940) at the lows of the session. The benchmark continues to hold the previous level of horizontal support that was confirmed in November at the open gap charted following the US Election at 5850. While we continue to rely on this point as the propping level for the rebound during this holiday period, there is still much to be contemplated pertaining to the near-term trend given the sharply negative candlesticks charted during the last two hours of trade a week ago on Wednesday. If you recall, it is within the one-day range of that volatile Wednesday session that we have expected the Santa Claus rally period to trade within and this is certainly proving to be the case. On a intermediate-term basis, while the trend remains that of higher-highs and higher-lows, evidence that the 50-day moving average has been unable to stem the tide of selling pressures and, now, the 20-day moving average is starting to define resistance certainly is sufficient to raise concern. Major moving averages are still showing rising parallel paths and momentum indicators continue to gyrate predominantly above their middle lines, providing characteristics of a bullish trend that warrants a positive positive bias, for now. Should major moving averages increasingly derive points of resistance, reason to conclude the shift of trend would be provided. Our list of candidates in the market to Accumulate and to Avoid remains appropriately positioned at this seasonally strong time of year, but our Avoid list has been growing in recent weeks given the fading of the election euphoria in the market.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- When “Santa fails to call, bears may come to Broad & Wall”
- The start of the optimal holding period for inflation hedges
- US New Home Sales
- The drop in the median price of new homes sold
- The seasonal trade in homebuilding stocks
- Breakdown of forestry stocks
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for December 30
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.87.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled for today.
S&P 500 Index
TSE Composite
| Sponsored By... |
|
