Stock Market Outlook for June 5, 2025
The period of seasonal weakness for the energy sector is here and, combined with the weak fundamental and technical backdrops, caution in the market segment is warranted.
*** 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.
Winmark Corp. (NASD:WINA) Seasonal Chart
Compx Intl, Inc. (AMEX:CIX) Seasonal Chart
CoreCard Corporation (NYSE:CCRD) Seasonal Chart
Afya Ltd. (NASD:AFYA) Seasonal Chart
The Markets
Stocks closed mixed on Wednesday as portfolio managers start to enact quarter-end allocations, selling off funds from market segments that have outperformed year-to-date and buying investments that have lagged . The S&P 500 Index closed essentially unchanged, continuing to test the band of resistance between 5900 and 6100. Once again, the moves over the past few days, albeit slight, are providing hint that the short-term rising trend stemming from the April lows is coming to an end with the 50-hour moving average no longer enticing the type of buying demand that has been observed over the past month and a half; a digestive period heading into the end of the second quarter is is still foreseeable before the summer rally period in July gets underway at the end of this month. Upside gap support around 5700 remains the critical level to watch over the short-term timeframe given a violation of the implied level of support would lead to a resumption of the strains that the intermediate-term trend has been portraying since the start of the year. Our list of candidates in the market that are worthy to Accumulate continues to perform well and, this week, only a few ratings changes were required.
Today, in our Market Outlook to subscribers, we discuss the following:
- June mean reversion getting underway
- US Vehicle Sales and the investment implications within
- The abrupt drop in gasoline demand and production last week, as well as the view of Refining stocks
- The start of the period of seasonal weakness for the Energy sector
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for June 5
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 0.84.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
