Stock Market Outlook for January 22, 2026
Looking at portfolio exposures that are not just repairing Tuesday’s damage, but excelling above it.
*** 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.
Cassiar Gold Corp. (TSXV:GLDC.V) Seasonal Chart
CHAR Technologies Ltd. (TSXV:YES.V) Seasonal Chart
WisdomTree Emerging Markets Local Debt Fund (NYSE:ELD) Seasonal Chart
Invesco DB Energy Fund (NYSE:DBE) Seasonal Chart
Taylor Devices, Inc. (NASD:TAYD) Seasonal Chart
Shinhan Financial Group Co. Ltd. (NYSE:SHG) Seasonal Chart
EZCORP, Inc. (NASD:EZPW) Seasonal Chart
WEX Inc. (NYSE:WEX) Seasonal Chart
Canadian National Railway Co. (TSE:CNR.TO) Seasonal Chart
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered is believed to be accurate, but is not guaranteed.
The Markets
Following the typical playbook for this Trump administration, stocks recovered on Wednesday amidst a de-escalation of tariff rhetoric following an announcement from the US President that a framework for a future deal with respect to Greenland had been achieved. The S&P 500 Index rallied by 1.16%, retaking previous October gap resistance turned support around 6830. The narrowing range that we have been profiling for the past month remains broken and the market has some work to do to chew through the downside gap around 6900 that is applying a level of resistance. As highlighted in our last report, the triggers were present to trim equity exposure, but we had little desire to participate in the panic selling that played out to start the week. Prior to Tuesday’s session, the market was showing greater respect to levels of support than to levels of resistance, but the price action over the past couple of days threatens to flip this stance. A recovery into the aforementioned zone of gap resistance (~6900) through the days/weeks ahead that gets sold into would provide the more opportune time to lighten up on equity exposure, bracing for the kind of volatility that is average around this time of year. In the Seasonal Advantage Portfolio that we oversee at Castlemoore, after enacting trades last week to reduce sensitivity to growth (Technology) segments of the market, there has been no trades that were considered to be required to start the week and we continue to benefit from our pro-cyclical stance. We continue to tailor towards the themes in our chart books to either Accumulate or Avoid that have been capturing the strength and rotation that has filtered into the market from the November 20th lows.
Today, in our Market Outlook to subscribers, we discuss the following:
- Market Overview & Technical Backdrop
- Portfolio Positioning & Strategy
- Sector Leadership & Rotation
- Technology: Semis vs. Software
- Seasonality & Market Leadership Outlook
- Economic Data: Construction Spending
- Infrastructure Bright Spot
- Commercial Construction & REITs
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for January 22
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 0.80.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
