Stock Market Outlook for April 28, 2023
As core-cyclical sectors increasingly carve out head-and-shoulders topping patterns, Communications Services has carved out an opposing bottoming setup as its optimal holding period continues.
*** 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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Infosys Technologies Ltd. (NYSE:INFY) Seasonal Chart
Merit Medical Systems, Inc. (NASD:MMSI) Seasonal Chart
Northern Technologies Intl Corp. (NASD:NTIC) Seasonal Chart
McKesson Corp. (NYSE:MCK) Seasonal Chart
Charter Communications Inc. (NASD:CHTR) Seasonal Chart
Richards Packaging Income Fund (TSE:RPI/UN.TO) Seasonal Chart
iShares Core Canadian Long Term Bond Index ETF (TSE:XLB.TO) Seasonal Chart
BMO Long Federal Bond Index ETF (TSE:ZFL.TO) Seasonal Chart
Regeneron Pharmaceuticals, Inc. (NASD:REGN) Seasonal Chart
BMO Equal Weight U.S. Health Care Hedged to CAD Index ETF (TSE:ZUH.TO) Seasonal Chart
The Markets
Stocks surged on Thursday as a positive reaction to earnings from Meta (Facebook) reinvigorated the much loved growth trade that has been flourishing this year. The S&P 500 Index closed with a gain of almost two percent, instantly erasing the declines that had been recorded on the benchmark over the past couple of sessions amidst the return of concerns pertaining to the banking industry. The benchmark is attempting to confirm support around the cloud of major moving averages in the range of 3950 to 4050, the upper limit of which was tested during the Wednesday session. The horizontal range of resistance between 4100 and 4200 remains the significant barrier to crack in order to alleviate the ceiling on this market that has been in place for almost a year. Seasonally, just a few more days remain in the best six months of the year trend for stocks that peaks at the start of May, following which strength in core-cyclical sectors (energy, materials, industrials, financials) fades and defensive segments of the market (staples, health care, utilities, REITs, and technology) become core allocations within equity portfolios.
Today, in our Market Outlook to subscribers, we discuss the following:
- Communication Services Sector ETF carving out a head-and-shoulders bottoming pattern
- Encouraging price action in the REIT sector
- Weekly Jobless Claims and the health of the labor market
- The trends of margin debt and credit balances in investor portfolios
- Eerily neutral sentiment
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To be released…
We are busy placing the finishing touches on our monthly report for May, providing you with all of the insight that you will need to navigate the markets through the month(s) ahead. Subscribers can look for this report in their inbox on Friday.
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Sentiment on Thursday, 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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