Stock Market Outlook for January 23, 2025
The devastating storms that hit the southern states this fall is resulting in a building boom in the region. We examine various stocks/segments of the market that are benefiting at this seasonally strong time of year.
*** 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.
Universal Stainless & Alloy Products, Inc. (NASD:USAP) Seasonal Chart
Grayscale Ethereum Trust (AMEX:ETHE) Seasonal Chart
Companhia Energetica de Minas Gerais (Cemig) (NYSE:CIG) Seasonal Chart
1-800 FLOWERS.COM, Inc. (NASD:FLWS) Seasonal Chart
DXP Enterprises, Inc. (NASD:DXPE) Seasonal Chart
Central Garden & Pet Co. (NASD:CENTA) Seasonal Chart
Carpenter Tech Corp. (NYSE:CRS) Seasonal Chart
Teledyne Technologies (NYSE:TDY) Seasonal Chart
The Markets
Stocks traded mixed on Wednesday as growth/technology segments of the market stole the show following blowout earnings from Netflix (NFLX) and news of an Artificial Intelligence infrastructure joint venture between OpenAI, Softbank, and Oracle (ORCL). The S&P 500 Index ended up by just over six-tenths of one percent, reaching back to the all-time high charted earlier in December. Short-term declining trendline resistance around 5975 has also been broken, removing a hurdle that the benchmark has persisted below over the past month. The previous all-time high around 6100 is now the hurdle to overcome, but the indecisive doji candlestick on the daily chart does not provide much confidence that a breakout will be recorded in the near-term. Various metrics, such as the put-call ratio, are highlighting the emergence of complacency, which skews the risk-reward of the market in the near-term given the bullish bet that has been adopted. We continue to monitor the potential impact of the apparent rotation in the market on our list of candidates in the market to Accumulate and to Avoid and we are still expecting that our list will show more of a neutral appearance through the weeks ahead as segments that were previously noted as Accumulate candidates fall off, potentially replaced by some value segments of the market, and as areas to Avoid are added.
Today, in our Market Outlook to subscribers, we discuss the following:
- Looking at the technicals of the Technology and Communication Services sectors and which segment has the better momentum and seasonals through the months ahead
- The burden that the Computer Hardware industry (AAPL) is imposing on the Technology sector
- US Housing Starts
- Homebuilding stocks
- Segments of the market that are benefiting at this time of year when construction companies normally strengthen
- The uptick of Consumer Loan activity in December
- The rise of home equity lines of credit and credit card loans
- Consumer loan delinquencies
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for January 23
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.77.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
