Stock Market Outlook for July 11, 2024
The price of oil is reacting to declining trendline resistance as its period of seasonal weakness gets underway.
*** 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
MBIA Inc. (NYSE:MBI) Seasonal Chart
Motorola Solutions Inc. (NYSE:MSI) Seasonal Chart
Bird Construction Inc. (TSE:BDT.TO) Seasonal Chart
Donaldson Co, Inc. (NYSE:DCI) Seasonal Chart
Preferred Bank (NASD:PFBC) Seasonal Chart
Dillards, Inc. (NYSE:DDT) Seasonal Chart
KP Tissue Inc. (TSE:KPT.TO) Seasonal Chart
The Markets
Stocks ramped higher on Wednesday as the summer rally engine clicks into high gear, keeping the string of new all-time highs alive and well. The S&P 500 Index closed with a gain of just over one percent, continuing to bounce from the 20-day moving average (5488) that was tested at the start of the month. Major moving averages continue to fan out in a positive manner and momentum indicators are firmly above their middle lines, both characteristics of a bullish trend that is conducive to providing the positive backdrop to the summer rally timeframe that spans the first few weeks of the third quarter. The Relative Strength Index (RSI) is pushing further into overbought territory above 70, now sitting at the highest level since the middle of December. While this could easily exhaust the near-term rising path at some point, leading to a digestuve phase that will likely coincide with the period of volatility for stocks ahead, there is still nothing yet to suggest that we have seen the peak for this mid-year move higher. The period of average volatility follows, spanning the remainder of the third quarter, therefore planning out stops on current holdings may be prudent to assure that risk mitigation efforts through August, September, and October are deployed effectively while looking for the opportunity to overweight bond market allocations following this equity market rally.
Today, in our Market Outlook to subscribers, we discuss the following:
- VIX is showing signs of bottoming ahead of the period of volatility for the equity market
- Wholesale sales and the investment implications of the trends within
- The decline of wholesale inventories
- Weekly petroleum supply/demand and the reaction of the price of oil to declining trendline resistance
- Uranium stocks
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for July 11
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
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
| Sponsored By... |
|
