Stock Market Outlook for October 29, 2024
The technicals and the fundamentals favour consumer services stocks over consumer goods counterparts heading towards the prime end of year spending period.
*** 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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KraneShares CSI China Internet ETF (AMEX:KWEB) Seasonal Chart
SPDR S&P Midcap 400 ETF (NYSE:MDY) Seasonal Chart
Hartford Multifactor US Equity ETF (AMEX:ROUS) Seasonal Chart
Invesco Dynamic Leisure and Entertainment ETF (NYSE:PEJ) Seasonal Chart
Pacer Global Cash Cows Dividend ETF (AMEX:GCOW) Seasonal Chart
Newmark Group, Inc. (NASD:NMRK) Seasonal Chart
Bilibili, Inc. (NASD:BILI) Seasonal Chart
Invesco S&P 500 Equal Weight Materials ETF (NYSE:RSPM) Seasonal Chart
Becton Dickinson and Co. (NYSE:BDX) Seasonal Chart
Boston Properties, Inc. (NYSE:BXP) Seasonal Chart
Unitedhealth Group, Inc. (NYSE:UNH) Seasonal Chart
Canfor Corp. (TSE:CFP.TO) Seasonal Chart
Toll Brothers, Inc. (NYSE:TOL) Seasonal Chart
Carlisle Cos, Inc. (NYSE:CSL) Seasonal Chart
NXP Semiconductor N.V. (NASD:NXPI) Seasonal Chart
Nutrien Ltd. (NYSE:NTR) Seasonal Chart
Molson Coors Canada Inc. (TSE:TPX-B.TO) Seasonal Chart
The Markets
Stocks closed generally higher on Monday despite a sharp decline in the Energy sector and stagnant performance in Technology. The S&P 500 Index closed up by just over a quarter of one percent, remaining pinned to levels around short term support at the rising 20-day moving average (5793). Over the past couple of weeks, 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 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.
Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
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Today, in our Market Outlook to subscribers, we discuss the following:
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- Other Notes
- Consumer Services over Consumer Goods
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Sentiment on Monday, as gauged by the put-call ratio, ended Neutral at 0.99.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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