Stock Market Outlook for August 29, 2025
Pick your spots in the industrial economy accordingly as the trends in activity become bifurcated heading through the back half of the 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
City Holding Co. (NASD:CHCO) Seasonal Chart
Entravision Communications Corp. (NYSE:EVC) Seasonal Chart
Elevance Health, Inc. (NYSE:ELV) Seasonal Chart
Innovator Loup Frontier Tech ETF (AMEX:LOUP) Seasonal Chart
Houlihan Lokey, Inc. (NYSE:HLI) Seasonal Chart
iShares Morningstar Large-Cap Value ETF (NYSE:ILCV) Seasonal Chart
Pacer Global Cash Cows Dividend ETF (AMEX:GCOW) Seasonal Chart
Aimia Inc. (TSE:AIM.TO) Seasonal Chart
Strattec Security Corp. (NASD:STRT) Seasonal Chart
China Automotive Systems Inc. (NASD:CAAS) Seasonal Chart
Note: Due to a prior obligation, there will be no daily report provided on Thursday, August 28th. However, we are busy placing the finishing touches on our monthly report for September, which is slated to be delivered to subscribers on Friday morning. Thanks for your understanding and stay tuned for our monthly report ahead.
The Markets
Traders maintained a positive tilt heading into the release of earnings from NVDIA (NVDA) after the closing bell, pushing the S&P 500 Index to a fresh record closing high. The large-cap benchmark ended up by just less than a quarter of one percent, reaching towards the next level of psychological significance at 6500. The bears are having difficulty sustaining levels below the 20-day moving average (6398), an important hurdle for the short-term trend of prices off of the April lows. Momentum indicators are still showing negative divergences versus price where lower-highs below July’s overbought extremes have been charted for RSI and MACD. The result gives strong evidence of buying exhaustion, once again lending itself to the onset of a digestion of prices aligning with the period of volatility for the equity market. As has been emphasized, this is the time to be on your toes given the well known volatile period that this time of year is notorious for. As equity markets destabilize from their summer strength, looking for opportunities to peel back risk in portfolios has become appropriate in order to mitigate the erratic moves that impacts stocks in the final months of the third quarter (August/September). The strategy remains to avoid being aggressive in risk (stocks) in the near-term, but take advantage of any volatility shocks (should they materialize) to increase the risk profile of portfolios ahead of the best six months of the year for stocks that gets underway in October. Our list of candidates in the market that are worthy to Accumulate or Avoid continues to be dialed in appropriately, keeping investors tuned into those segments of the market that are working according to our three-pronged approach incorporating seasonal, technical, and fundamental analysis.
Today, in our Market Outlook to subscribers, we discuss the following:
- US Durable Goods Orders and the investment implications within
- The weak trend of shipping volumes and the strains it is imposing on transportation stocks
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for August 29
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 0.75.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
