Stock Market Outlook for July 19, 2024
The jump in the VIX over the past couple of sessions suggests that the period of volatility for stocks has arrived.
*** 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.
iShares Morningstar Large-Cap Value ETF (NYSE:ILCV) Seasonal Chart
DallasNews Corporation (NASD:DALN) Seasonal Chart
Aflac, Inc. (NYSE:AFL) Seasonal Chart
NMI Holdings, Inc. (NASD:NMIH) Seasonal Chart
RLI Corp. (NYSE:RLI) Seasonal Chart
Primerica Inc. (NYSE:PRI) Seasonal Chart
Leidos Holdings, Inc. (NYSE:LDOS) Seasonal Chart
The Markets
Stocks continued to selloff on Thursday now that the growth (technology) trade has lost its lustre and given the conclusion to the average summer rally timeframe. The S&P 500 Index fell by almost eight-tenths of one percent, reaching back to short-term support at its 20-day moving average (5539). A short-term downside gap remains open between 5622 and 5658, a zone that will likely work to cap the the summer rally that has now past its average peak. Major moving averages continue to fan out positively, but any pressuring of these zones as support could shift this bullish characteristic through the months ahead. Wednesday’s abrupt downturn has pulled the Relative Strength Index (RSI) out of overbought territory to now sit at the lowest level in a month and a half, suggesting a near-term peak to this momentum indicator and providing a near-term signal to sell as we head towards the most volatile period on the calendar in August, September, and October. The time is here to prepare portfolio strategy for the period of volatility for stocks that runs through the next three months.
Today, in our Market Outlook to subscribers, we discuss the following:
- The surge in the VIX
- The change we are making in the Super Simple Seasonal Portfolio
- Weekly Jobless Claims and the health of the labor market
- US Petroleum supply and demand, the price of oil, and the energy sector
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for July 19
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish.
Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.92.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
