Stock Market Outlook for June 14, 2024
The reports on Consumer and Producer prices have instantly shifted the market’s expectation for the trajectory of inflationary pressures moving forward.
*** 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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Myriad Genetics, Inc. (NASD:MYGN) Seasonal Chart
Veradigm Inc (NASD:MDRX) Seasonal Chart
Asanko Gold Inc. (TSE:AKG.TO) Seasonal Chart
Intact Financial Corp. (TSE:IFC.TO) Seasonal Chart
MicroStrategy Inc. (NASD:MSTR) Seasonal Chart
BlackRock Core Bond Trust (NYSE:BHK) Seasonal Chart
iShares U.S. Pharmaceuticals ETF (NYSE:IHE) Seasonal Chart
iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:LQD) Seasonal Chart
The Markets
Stocks closed generally mixed on Thursday as investor attention remains squarely focused on the technology sector. The S&P 500 Index ended with a gain of just less than a quarter of one percent, continuing to show elevation above the 20-day moving average level that it had been grinding around in recent days. Wednesday’s upside gap between 5375 and 5409 still defines a zone of short-term support for traders to shoot against as the market gets set to enter one of the weakest periods of the year starting today (June 14th). The benchmark has become overbought, according to the Relative Strength Index (RSI), but it has stockpiled levels of support below, including major moving averages, which are in positions to attempt to catch prices if and when a digestive period commences. Seasonal tendencies call for weakness through the next couple of weeks and, combined with the lack of market breadth, we are still unable to find reason to be aggressive in stocks in the near-term, until we get to the summer rally period just ahead of July. We are, however, finding the opportunity to rotate our core bond allocation in the Super Simple Seasonal Portfolio as the dynamics in this asset class shift.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly Jobless Claims and the health of the labor market
- Producer Price Index and the derailment compared to seasonal norms that is becoming apparent in the trend
- The shift of trend of inflation expectations
- The change we are making in the Super Simple Seasonal Portfolio
- The recent break of the correlation between treasury yields and the US Dollar and when this is expected to end
- Investor sentiment showing evidence of complacency
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for June 14
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Sentiment on Thursday, as gauged by the put-call ratio, ended slightly bearish at 1.01.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled for today.
S&P 500 Index
TSE Composite
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