Stock Market Outlook for January 28, 2025
Benchmarks with a lower weight in technology remain the desired core-allocation to equity exposure in portfolios.
*** 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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Hasbro, Inc. (NASD:HAS) Seasonal Chart
Aptargroup, Inc. (NYSE:ATR) Seasonal Chart
Sensient Technologies Corp. (NYSE:SXT) Seasonal Chart
Aspen Technology, Inc. (NASD:AZPN) Seasonal Chart
Celsius Holdings Inc. (NASD:CELH) Seasonal Chart
Navigator Holdings Ltd. (NYSE:NVGS) Seasonal Chart
The Markets
Stocks traded traded highly mixed on Monday as a shakeup in Artificial Intelligence trade placed pressure on formerly beloved technology names. The S&P 500 Index fell by 1.46%, reaching back to recently broken resistance at 20 and 50-week moving averages. The variable hurdles also closely aligns with previous short-term declining trendline resistance around 5975, a barrier that capped the benchmark over the past month. A level of gap resistance has been opened between Friday’s low at 6088 and Monday’s high at 6017, providing a hurdle that traders are likely to look to sell into through the days/weeks ahead as broader momentum dwindles. Momentum indicators have negatively from price since the middle of last year, highlighting the waning enthusiasm investors had been expressing towards tech-heavy benchmarks, like this, amidst extreme valuations. 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 (eg. Technology), 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:
- Technology, Utilities, and Industrial sectors amidst Monday’s selloff
- Benchmarks with a lower weight in technology remain the desired core-allocation to equity exposure in portfolios
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- Other Notes
- Investor sentiment and the point to buy the fear that Monday’s technology driven selloff has kicked up
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Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
- Currencies
- Cryptocurrencies
- Commodities
- Major Benchmarks
- Sub-sectors / Industries
- ETFs: Bonds | Commodities | Equity Markets | Industries | Sectors
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Despite the spike in volatility to start the week, investor sentiment, according to 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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