Stock Market Outlook for June 29, 2023
The trade deficit in the US appears to be on the path towards expansion again thanks to the resilience of the consumer.
*** 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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Andrew Peller Ltd. (TSE:ADW/A.TO) Seasonal Chart
A.I.S. Resources Ltd. (TSXV:AIS.V) Seasonal Chart
The Markets
Stocks traded mixed on Wednesday as portfolio managers continue to execute incremental allocation changes ahead of the end of the quarter. The S&P 500 Index closed almost flat (down by 0.04%), remaining supported by the rising 20-day moving average. Momentum indicators continue to portray characteristics of a bullish trend above their middle lines and the alleviation of overbought conditions charted in recent weeks provides the leeway for the summer rally period through the middle of July to excel now that the exhaustive state has been removed. The intermediate-term trend remains that of higher-highs and higher-lows, supported by major moving averages, and this is not expected to change in the weeks ahead, which is typically one of the stronger periods for the equity market. As highlighted yesterday and will be contended in our soon to be released monthly outlook for July, the breakout of the approximately 400-point range between 3800 and 4200 has a calculated upside target towards 4600, a target that could easily be achieved during the bullish fluctuation that is normal through the first three weeks of July. The technicals are not providing much for the bears to feed off of, which warrants an upbeat view of stocks at least for the next few weeks, despite fundamental concerns pertaining to the economy that are ongoing.
Today, in our Market Outlook to subscribers, we discuss the following:
- Stocks over bonds during the summer rally period
- US International Trade and the re-expansion of the trade deficit since February
- Emerging Market stocks
- Weekly Petroleum status and the price of Oil
- Transportation stocks and the Airline industry
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.84.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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