Stock Market Outlook for January 31, 2025
Signs of complacency in the market continue to emerge.
*** 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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Tyson Foods Inc Cl A (NYSE:TSN) Seasonal Chart
TETRA Technologies (NYSE:TTI) Seasonal Chart
Phibro Animal Health Corp. (NASD:PAHC) Seasonal Chart
Genesis Land Development Corp. (TSE:GDC.TO) Seasonal Chart
The Markets
Stocks drifted higher on Thursday as investors continue to look for ways to diversify out of expensive technology names that had flourished over the past couple of years. The S&P 500 Index gained by just over half of one percent, holding levels above the 20-day moving average (5971). The variable hurdle also closely aligns with previous short-term declining trendline resistance around 5975, a barrier that capped the benchmark over the past month. A fill of the gap that was opened during Monday’s selloff between 6017 and 6088 continues; traders are likely to look to sell into this zone through the days/weeks ahead as broader momentum dwindles. Momentum indicators have negatively diverged from price since the middle of last year, highlighting the waning enthusiasm investors had been expressing towards tech-heavy benchmarks, like this, amidst extreme valuations. 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 (eg. Technology), 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:
- Everything but Technology rally and how to allocate broad market exposure
- Gold reaching new heights
- Margin debt and credit balances in investor accounts
- Credit spreads showing signs of bottoming
- Weekly jobless claims and the health of the labor market
- Investor sentiment
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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.70.
Soon to be released…
We are busy placing the finishing touches on our monthly report for February, providing you with everything that you need to know to navigate this market through the month(s) ahead. Subscribers can look for this report in their inbox soon.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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