Stock Market Outlook for October 28, 2024
Today marks the average start to the best six months of the year timeframe for the equity market.
*** 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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Amcor plc (NYSE:AMCR) Seasonal Chart
Generation Mining Ltd. (TSE:GENM.TO) Seasonal Chart
Resources Connection Inc. (NASD:RGP) Seasonal Chart
SPDR S&P Health Care Equipment ETF (NYSE:XHE) Seasonal Chart
SPDR S&P Biotech ETF (NYSE:XBI) Seasonal Chart
iShares North American Tech-Multimedia Networking ETF (NYSE:IGN) Seasonal Chart
McDonalds Corp. (NYSE:MCD) Seasonal Chart
Marriott Vacations Worldwide Corp. (NYSE:VAC) Seasonal Chart
Marvell Technology Inc (NASD:MRVL) Seasonal Chart
Align Technology, Inc. (NASD:ALGN) Seasonal Chart
Invesco Aerospace & Defense ETF (NYSE:PPA) Seasonal Chart
Invesco S&P 500 High Beta ETF (NYSE:SPHB) Seasonal Chart
Vanguard Industrials ETF (NYSE:VIS) Seasonal Chart
Eaton Corp. (NYSE:ETN) Seasonal Chart
Nucor Corp. (NYSE:NUE) Seasonal Chart
USX-US Steel Group, Inc. (NYSE:X) Seasonal Chart
Boston Scientific Corp. (NYSE:BSX) Seasonal Chart
Manulife Financial Corp. (NYSE:MFC) Seasonal Chart
iShares U.S. Healthcare Providers ETF (NYSE:IHF) Seasonal Chart
US Global Jets ETF (AMEX:JETS) Seasonal Chart
iShares Russell 2000 ETF (NYSE:IWM) Seasonal Chart
Mednax, Inc. (NYSE:MD) Seasonal Chart
J.B. Hunt Transport Services, Inc. (NASD:JBHT) Seasonal Chart
AGCO Corp. (NYSE:AGCO) Seasonal Chart
Toro Co. (NYSE:TTC) Seasonal Chart
Enbridge, Inc. (TSE:ENB.TO) Seasonal Chart
AbbVie Inc. (NYSE:ABBV) Seasonal Chart
DR Horton Inc. (NYSE:DHI) Seasonal Chart
InterContinental Hotels Group PLC (NYSE:IHG) Seasonal Chart
The Markets
Stocks faded early gains on Friday and closed marginally below the flatline as traders show their reluctance to stretch out on the risk spectrum while uncertainty overhangs the election outcome. The S&P 500 Index closed down by just three basis points (0.03%), pinning itself to short term support at the rising 20-day moving average (5790). In recent days, the benchmark has shown a cap at 5870, resulting in an ultra-short-term topping pattern that projects a downside target of 5745. Despite the recent stall, this market is showing greater evidence of support than resistance over an intermediate-term timeframe, presenting characteristics of a bullish trend. What is concerning to the prevailing path is the waning of upside momentum, something that we have seen more evidence of with another MACD sell signal in the past couple of days; the momentum indicator has shown a negative divergence versus price through the current calendar year, highlighting the fading enthusiasm towards the risk profile that equities encompass. The risk-reward, broadly, remains unattractive. We continue to like the groups that are on our growing list of Accumulate candidates, but there are certainly segments of the market to Avoid. With the start of the best six months of the year for stocks slated to get underway, there is a need from a seasonal perspective to ramp up risk exposure at some point.
Today, in our Market Outlook to subscribers we discuss the following:
- Weekly look at the large-cap benchmark
- The start of the strongest time of the year for stocks
- The large number of securities that start their optimal holding period today
- US Durable Goods Orders and the investment implications within
- Canada Retail Sales and the capped performance of retail stocks
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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.89.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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