Equity Clock

Stock Market Outlook for January 11, 2022

We’re buying the dip in this Software ETF, which reached the accepted definition of a bear market decline at the lows on Monday.

 

 

 

*** 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.

BMO Low Volatility US Equity Hedged to CAD ETF (TSE:ZLH.TO) Seasonal Chart

Brown-Forman Corp. – Class B (NYSE:BF/B) Seasonal Chart

Colgate-Palmolive Co. (NYSE:CL) Seasonal Chart

WD-40 Co. (NASD:WDFC) Seasonal Chart

Leggett & Platt, Inc. (NYSE:LEG) Seasonal Chart

First Cash (NASD:FCFS) Seasonal Chart

Invesco Dynamic Food & Beverage ETF (NYSE:PBJ) Seasonal Chart

Invesco S&P 500 Low Volatility ETF (NYSE:SPLV) Seasonal Chart

Vanguard Consumer Staples ETF (NYSE:VDC) Seasonal Chart

 

 

 

The Markets

Stocks dipped to start the new week as the selloff in the technology sector weighed on the market early in Monday’s session.  The S&P 500 Index ended lower by just over a tenth of one percent, closing well off of the lows of the session that saw the large-cap benchmark post a decline of nearly 2%.  It was support at the 100-day moving average that gave the bulls the confidence to step in and force the bears to retrench for the time being.  The 100-day moving average was the level that provided support to the market at the lows in November and December, but this third test in as many months emphasizes the upside exhaustion that stocks have been experiencing around record heights.  Investors are feeling more comfortable holding prices closer to major intermediate and long-term moving averages as opposed to the elevated pace above support that had been apparent for over a year.  Momentum indicators continue to diverge from price, also an indication of waning buying demand, and the 50-day moving average is currently in a position of resistance.  Whether the 100-day moving average proves to be the short-term tradable low to this market pullback is anybody’s guess, but oversold lows on the hourly chart would lend itself to some kind of bounce from this juncture.

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

• Hourly look at the S&P 500 Index
• The violation of horizontal support on the NASDAQ Composite
• The reversal on the chart of the Software ETF (IGV)
• Test of support on the chart of the long-term treasury bond fund and the inversion of the yield curve at the long end
• Ratings changes in this week’s chart books: Find out what has been upgraded to Accumulate or downgraded to Avoid

Subscribe now and we’ll send this outlook to you.

Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

• Currencies
• Cryptocurrencies
• Commodities
• Major Benchmarks
• Sub-sectors / Industries

Subscribe now.

Sentiment on Monday, as gauged by the put-call ratio, ended neutral at 0.99.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...