Stock Market Outlook for February 13, 2025
Emerging pricing pressures over the past few months calls for inflation hedges via commodity exposure in portfolios at this 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:
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Westward Gold Inc. (CSE:WG.CA) Seasonal Chart
Voyager Therapeutics, Inc. (NASD:VYGR) Seasonal Chart
Ferrari NV (NYSE:RACE) Seasonal Chart
iShares MSCI Europe IMI Index ETF (CAD-Hedged) (TSE:XEH.TO) Seasonal Chart
ProShares Ultra Consumer Services (NYSE:UCC) Seasonal Chart
Eli Lilly & Co. (NYSE:LLY) Seasonal Chart
Prestige Consumer Healthcare Inc. (NYSE:PBH) Seasonal Chart
Thomson Reuters Corp. (TSE:TRI.TO) Seasonal Chart
Metro, Inc. (TSE:MRU.TO) Seasonal Chart
Sempra Energy (NYSE:SRE) Seasonal Chart
Quanta Services, Inc. (NYSE:PWR) Seasonal Chart
The Markets
Stocks closed generally lower on Wednesday following a hotter than expected report on consumer prices. The S&P 500 Index closed down by just over a quarter of one percent, managing to hold above support at the 20-day moving average (~6043), despite pronounced intraday weakness. The benchmark remains below a short-term cap at 6100 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. A daily MACD sell signal has now been triggered as the momentum indicator crosses below its signal line. 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 stance 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:
- Risk aversion taking a toll on small/mid-cap stocks and the change we are making in the Super Simple Seasonal Portfolio
- US Consumer Price Index (CPI) and the investment implications within
- Intermediate-term treasury yield jumping from previous resistance and mitigating interest-rate risk in portfolios
- Banks
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.78.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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