Equity Clock

Stock Market Outlook for December 24, 2021

The alleviation of negative bets has pushed stocks back to all-time highs, despite COVID concerns.  We have new data pertaining to driving activity and credit conditions.

 

 

 

*** 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.

Goodfellow, Inc. (TSE:GDL.TO) Seasonal Chart

Motorcar Parts of America Inc. (NASD:MPAA) Seasonal Chart

Invesco S&P 500 Equal Weight Energy ETF (NYSE:RYE) Seasonal Chart

Enbridge, Inc. (TSE:ENB.TO) Seasonal Chart

iShares Core U.S. Aggregate Bond ETF (NYSE:AGG) Seasonal Chart

Tractor Supply Co. (NASD:TSCO) Seasonal Chart

Imax Corp. (NYSE:IMAX) Seasonal Chart

Waste Connections, Inc. (NYSE:WCN) Seasonal Chart

Invesco CurrencyShares Australian Dollar Trust (NYSE:FXA) Seasonal Chart

 

Note: As a result of market closures in Canada and the US on Friday, Monday, and Tuesday, our next Market Outlook report will be released on Wednesday.

 

 

The Markets

Stocks closed higher for a third day, continuing to tack on to the weekly gain for broad market benchmarks following what was a threatening start to the holiday week.  The S&P 500 Index added 0.62%, closing at resistance above 4700 that has been intact  for the past month and a half.  The negative trend of momentum indicators is starting to crack with RSI pushing above declining resistance and MACD triggering a bullish crossover above its signal line.  An ascending triangle pattern has become apparent on the chart, suggesting the continuation of the longer-term trend of higher-highs and higher-lows.  Support can be pegged at the convergence of 20 and 50-day moving averages around 4630.

Today, in our Market Outlook to subscribers, we discuss the following:

• The alleviation of negative bets in the market and the tendency for the broad equity market over the next six sessions
• Driving activity in the US
• The improvement in credit conditions
• Recovery in Bitcoin from levels around the 200-day moving average
• US Durable Goods Orders and what is driving activity
• US New Home Sales and the health of stocks related to the home building industry

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Sentiment on Thursday, 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

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