Stock Market Outlook for December 28, 2022
*** 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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Emerging Markets Internet and eCommerce ETF (AMEX:EMQQ) Seasonal Chart
Wells Fargo Advantage Global Dividend Opportunity Fund (NYSE:EOD) Seasonal Chart
iShares U.S. Oil Equipment & Services ETF (NYSE:IEZ) Seasonal Chart
KraneShares CSI China Internet ETF (AMEX:KWEB) Seasonal Chart
Invesco S&P 500 Equal Weight Energy ETF (NYSE:RYE) Seasonal Chart
Global Atomic Corporation (TSE:GLO.TO) Seasonal Chart
GoldMoney Inc. (TSE:XAU.TO) Seasonal Chart
The Markets
Stocks struggled in their post-Christmas holiday session as portfolio managers window dressed their portfolios to eliminate the need to report exposure to beaten down stocks in the Technology and Consumer Discretionary sectors. The S&P 500 Index ended down on the day by four-tenths of one percent, continuing to consolidate below the 50-day moving average and horizontal resistance at 3900. Declining trendline resistance remains threatening just above 4000, representing the upper limit of a declining megaphone pattern, the lower limit of which can be pegged around 3200. Short-term downside momentum following the first half of December weakness continues to show signs of waning and upside gap support between 3770 and 3860 remains in a position to support the near-term potential of the Santa Claus rally period, despite the more ominous setup that projects the continuation of the intermediate to long-term decline. Stocks typically exhibit a positive bias through the first few days of the new year and, while evidence remains overwhelming that the reflux rally higher off of the October low has matured/peaked, we have yet to reach the timeframe when negative bets of equity allocations are appropriate/sustainable.
Today, in our Market Outlook to subscribers, we discuss the following:
- QQQ ETF back to horizontal support
- TSLA has fulfilled the downside target of a head-and-shoulders pattern following the recent parabolic decline
- Weekly Chart Books updates: Focus is on the commodity market
- The ongoing decline of home prices in the US
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Sentiment on Tuesday, as gauged by the put-call ratio, ended neutral at 1.00
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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