Stock Market Outlook for October 7, 2022
If the change in Non-Farm Payrolls merely comes in around the September average of 0.4% (~600,000), the economy will have gained back all of the jobs that were lost during the pandemic.
*** 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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Northern Trust Corp. (NASD:NTRS) Seasonal Chart
State Street Corp. (NYSE:STT) Seasonal Chart
Questerre Energy Corp. (TSE:QEC.TO) Seasonal Chart
EMCOR Group, Inc. (NYSE:EME) Seasonal Chart
Ingredion Inc. (NYSE:INGR) Seasonal Chart
Anglogold Ashanti Ltd. (NYSE:AU) Seasonal Chart
El Pollo Loco Holdings, Inc. (NASD:LOCO) Seasonal Chart
iShares Dow Jones U.S. ETF (NYSE:IYY) Seasonal Chart
Headwater Exploration Inc. (TSE:HWX.TO) Seasonal Chart
Mawson Resources Ltd. (TSE:MAW.TO) Seasonal Chart
Invesco S&P International Developed High Dividend Low Volatility ETF (AMEX:IDHD) Seasonal Chart
First National Financial Corp. (TSE:FN.TO) Seasonal Chart
Invesco Golden Dragon China ETF (NASD:PGJ) Seasonal Chart
Open Text Corp. (NASD:OTEX) Seasonal Chart
Visteon Corp. (NASD:VC) Seasonal Chart
Boralex, Inc. (TSE:BLX.TO) Seasonal Chart
ON Semiconductor Corp. (NASD:ON) Seasonal Chart
The Markets
Stocks slipped on Thursday as investors await for the always anticipated monthly payroll report for September. The S&P 500 Index shed 1.02%, continuing to resist at the declining 20-day moving average around 3800. The more formidable threat remains the declining 50-day moving average that now hovers just below 4000. Until the trajectory of this moving average flips back positive, a certain amount of scepticism of the direction of stocks remains warranted and using major moving averages as levels to sell into in order to lighten up on equity exposure remains appropriate. Tuesday’s upside gap around 3700 remains the hurdle to shoot off of on the long side. MACD remains on a buy signal, an event that was trigged in the previous session, however, momentum indicators continue to show characteristics of a bearish trend. Friday is another pivotal day for the market and the intermediate trend of stocks as the monthly non-farm payroll report is released. Our focus following the release of the report will be on the reaction of yields and the dollar given the burden that their trajectories have imposed on stocks this year.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly Jobless Claims and the health of the labor market
- Preview of what to expect of September’s Non-Farm Payroll report
- Natural gas inventories and the seasonal trade in the commodity
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for October 7
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Sentiment on Thursday, as gauged by the put-call ratio, ended slightly bullish at 0.90.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled for today
S&P 500 Index
TSE Composite
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