Stock Market Outlook for March 14, 2025
While headline risks remain high, the equity market has reached a zone where a snap-back has become highly likely.
*** 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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NIU Technologies (NASD:NIU) Seasonal Chart
Lantheus Holdings, Inc. (NASD:LNTH) Seasonal Chart
Nuveen ESG Large-Cap Growth ETF (AMEX:NULG) Seasonal Chart
First Asset Tech Giants Covered Call ETF (TSE:TXF/B.TO) Seasonal Chart
Vanguard FTSE Developed Markets ETF (NYSE:VEA) Seasonal Chart
Brown-Forman Corp. – Class A (NYSE:BF/A) Seasonal Chart
MicroSectors FANG+ ETN (AMEX:FNGS) Seasonal Chart
BMO Nasdaq 100 Equity Index ETF (TSE:ZNQ.TO) Seasonal Chart
iShares MSCI ACWI ex US ETF (NASD:ACWX) Seasonal Chart
Q2 Holdings, Inc. (NYSE:QTWO) Seasonal Chart
Ashford Hospitality Trust Inc. (NYSE:AHT) Seasonal Chart
Select Medical Holdings Corp. (NYSE:SEM) Seasonal Chart
Pine Cliff Energy Ltd. (TSE:PNE.TO) Seasonal Chart
Dollar General Corp. (NYSE:DG) Seasonal Chart
Oracle Corp. (NYSE:ORCL) Seasonal Chart
Newmont Corporation (NYSE:NEM) Seasonal Chart
Trevi Therapeutics, Inc. (NASD:TRVI) Seasonal Chart
The Markets
Stocks continue to respond to economic uncertainty as the Trump administration expresses their commitment to keep tariffs intact in order to draw activity back to the US. The S&P 500 Index ended down by 1.39%, remaining below support around the 200-day moving average (5738). The benchmark continues to sit around the furthest below this long-term hurdle since 2022. A declining short-term trend remains intact. A simple sign to suggest that the market is moving beyond this short-term declining path is if the benchmark is able to close above the high of the prior day, something that has not been seen since February 19th. At some point, a checkback of the now declining resistance at the 50-day moving average (5948) is reasonable and likely, at which point the true health of the intermediate-term trajectory of stocks can be determined. Markets that are showing greater resistance than support must be avoided, a framework, on an intermediate-term scale, we have not seen yet. Momentum indicators on the daily chart have negatively diverged from price since the middle of last year, highlighting the waning enthusiasm investors had been expressing towards tech-heavy (Mag-7) benchmarks, like this, amidst extreme valuations. For now, the drawdown in the market can still be viewed as healthy and ordinary within a bull market, by any measure, but scrutiny is certainly warranted now that some critical levels have been lost, such as 5700 on the S&P 500. Below this threshold, more dire scenarios for risk assets must be considered. 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:
- Headline risks high, but the market has reached a zone where a snap-back has become highly likely and what we are doing about it in the Super Simple Seasonal Portfolio
- Producer Price Index (PPI)
- Commodity prices remain firmly supported at this time of year
- Seasonal trade in Natural Gas
- Weekly Jobless Claims and the health of the labor market
- Investor sentiment
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Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.08.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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