Stock Market Outlook for January 24, 2025
Energy remains setup well at this seasonally strong time of year.
*** 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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Progressive Corp. (NYSE:PGR) Seasonal Chart
Crane Co. (NYSE:CR) Seasonal Chart
Microvision, Inc. (NASD:MVIS) Seasonal Chart
The Markets
Stocks edged higher on Thursday after Donald Trump called for lower interest rates and oil prices. The S&P 500 Index ended up by just over half of one percent, breaking through the all-time high charted earlier in December. Levels of resistance have been taken out, including short-term declining trendline resistance around 5975 that capped the benchmark over the past month. Momentum indicators are moving back above their middle lines, attempting to shake off some of the bearish readings that were filtering into the market following the pullback in stocks between early December and the middle of January. Various metrics, such as the put-call ratio, are highlighting the emergence of complacency, which skews the risk-reward of the market in the near-term given the bullish bet that has been adopted. We continue to monitor the potential impact of the apparent rotation in the market on our list of candidates in the market to Accumulate and to Avoid and we are still expecting that our list will show more of a neutral appearance through the weeks ahead as segments that were previously noted as Accumulate candidates fall off, potentially replaced by some value segments of the market, and as areas to Avoid are added.
Today, in our Market Outlook to subscribers, we discuss the following:
- Petroleum supply and demand through the first half of January
- The setup for energy stocks and the ETFs on our list of Accumulate candidates
- Weekly jobless claims and the health of the labor market
- Canada Retail Sales and the weak trend in the consumer economy
- Retail equities
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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.78.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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