Stock Market Outlook for February 7, 2025
A source of fuel that has worked to inflate equity values is running out.
*** 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.
Transmedics Group Inc. (NASD:TMDX) Seasonal Chart
General Mills Inc. (NYSE:GIS) Seasonal Chart
Breakwave Dry Bulk Shipping ETF (AMEX:BDRY) Seasonal Chart
Ero Copper Corporation (TSE:ERO.TO) Seasonal Chart
TreeHouse Foods Inc. (NYSE:THS) Seasonal Chart
Clean Harbors, Inc. (NYSE:CLH) Seasonal Chart
The Markets
Stocks edged higher on Thursday as investors wait for the results of January’s payroll report slated to be released before Friday’s opening bell. The S&P 500 Index gained just less than four-tenths of one percent, holding support at the 20-day moving average (~6003). The benchmark remains below the upper limit of gap resistance that was opened during the Artificial Intelligence fuelled selloff recorded a week ago Monday between 6017 and 6088. The market remains in a tenuous state as broader momentum dwindles. Momentum indicators have negatively diverged 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 have adopted more of a neutral appearance as segments that were previously noted as Accumulate candidates fall off (eg. Technology) and as areas to Avoid are added.
Today, in our Market Outlook to subscribers, we discuss the following:
- A source of fuel that has worked to inflate equity values is running out
- Net Assets on the Fed’s Balance sheet
- Weekly jobless claims and the health of the labor market
- A look ahead at what to expect from January’s Nonfarm Payroll report
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for February 7
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.76.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
