Stock Market Outlook for August 24, 2026
New all-time highs in Material, Energy, and Health Care stocks in this highly rotational market.
*** 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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Stock Highlight: |
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iShares MSCI India Small-Cap ETF (AMEX:SMIN) Seasonal Chart |
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Rex American Resources Corp. (NYSE:REX) Seasonal Chart
Entravision Communications Corp. (NYSE:EVC) Seasonal Chart
BlackLine, Inc. (NASD:BL) Seasonal Chart
Apple Hospitality REIT, Inc. (NYSE:APLE) Seasonal Chart
iShares U.S. Financial Services ETF (NYSE:IYG) Seasonal Chart
Invesco S&P SmallCap Materials ETF (NASD:PSCM) Seasonal Chart
BMO Covered Call US Banks ETF (TSE:ZWK.TO) Seasonal Chart
Corcept Therapeutics Inc. (NASD:CORT) 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
Commodity market strength (eg. Gold, Silver, Copper, Oil) helped to give lift to the equity market on Friday as material stocks took a leg higher. The S&P 500 Index closed higher by just over four-tenths of one percent, showing initial reaction to the upper limit of the consolidation span between 7250 and 7620 that the benchmark broke out from in recent weeks; previous resistance at this upper threshold is being looked to as support. A short-term bull-flag pattern continues to be charted, suggesting further upside to be expected and the retracement towards aforementioned previous resistance at 7620 has alleviated the near-term froth that enticed profit-taking in recent days. The benchmark remains above 20 and 50-day moving averages (~7541), keeping the ball in the bulls court heading into the final days of August. Daily momentum indicators have been rolling over, but they are retaining characteristics of a bullish trend above their middle lines. In the Seasonal Advantage Portfolio that we manage for clients at CastleMoore, we continue to hold an elevated exposure to stocks, aligning with the optimism that the manufacturing economy is expressing. The period of volatility in the equity market through the weeks ahead could start to impose some erratic results (as is presently being seen), but there is some leeway on the calendar before the peak period of weakness rolls around starting in the middle of September. Subscribers can view what we are targeting in our list of market segments to either Accumulate or Avoid.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- New all-time highs for Materials, Energy, and Health Care
- Technology to benefit next from rotation?
- Canada Retail Sales and the investment implications from the gauge of consumer activity
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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.73.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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