Stock Market Outlook for September 20, 2024
While we are not observing the weakness that is typical for stocks at this time of year, normal mean reversion is certainly taking hold, resulting in near-term reversals of prevailing trends.
*** 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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EOG Resources, Inc. (NYSE:EOG) Seasonal Chart
Genesco, Inc. (NYSE:GCO) Seasonal Chart
Artesian Resources Corp. (NASD:ARTNA) Seasonal Chart
PBF Energy Inc. (NYSE:PBF) Seasonal Chart
ProShares Pet Care ETF (AMEX:PAWZ) Seasonal Chart
The Markets
Stocks jumped on Thursday as investors reassessed their initial cautious reaction to the Fed’s outsized 50 basis point rate cut and bid stocks, particularly in growth segments, higher. The S&P 500 Index ended higher by 1.70%, charting a fresh all-time high and slicing through horizontal resistance at 5650. The move resolves a multi-month narrowing consolidation pattern that was bound by support at the 100-day moving average (5428) and resistance at the downside gap between 5622 and 5658 that was charted at the end of the summer rally period in July. The technicals suggest the continuation of the near-term direction of travel, despite being within this weak time of year for equity market performance at the end of the second quarter. Seasonality has us locked into this cautious view of stocks through the remaining days of September, but the strength that the market has been revealing certainly diminishes the threat of an intermediate-term topping pattern that was apparent previous.
Today, in our Market Outlook to subscribers, we discuss the following:
- Mean reversion, away from this quarter’s winners and towards the laggards
- Percent of stocks above their 200-day moving averages
- US Existing Home Sales
- Weekly Jobless Claims and the skew that the headline print is portraying
- Manufacturer Sentiment
- Investor Sentiment
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Investor sentiment on Thursday, as gauged by the put-call ratio, ended slightly bearish at 1.03.
Seasonal charts of companies reporting earnings today:
- No significant earnings scheduled for today.
S&P 500 Index
TSE Composite
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