Stock Market Outlook for August 10, 2026
Trend of employment conducive to reining in recent strength in the dollar and the cost of borrowing, promoting reliable seasonal trades through the third quarter.
*** 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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Stock Highlight: |
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Ranger Energy Services, Inc. (NYSE:RNGR) Seasonal Chart |
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United States Copper Fund (AMEX:CPER) Seasonal Chart
Invesco DB Base Metals Fund (NYSE:DBB) Seasonal Chart
Saga Communications, Inc. (NASD:SGA) Seasonal Chart
Renaissance RE Holdings Ltd. (NYSE:RNR) Seasonal Chart
Chemtrade Logistics Income Fund (TSE:CHE/UN.TO) Seasonal Chart
High Tide Inc. (NASD:HITI) Seasonal Chart
Invesco Ltd. (NYSE:IVZ) Seasonal Chart
CNO Financial Group Inc. (NYSE:CNO) Seasonal Chart
CACI Intl, Inc. (NYSE:CACI) Seasonal Chart
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered is believed to be accurate, but is not guaranteed.
The Markets
A pullback in interest rates and the US Dollar following a weak payroll report for July was good to add a few more points to equity benchmarks that produced their best weekly return in months. The S&P 500 Index added just over six-tenths of one percent, continuing to hold above the consolidation span that the benchmark had been within since the start of June between 7250 and 7620; previous resistance at this upper threshold now turns into support. Implied resistance around 20 and 50-day moving averages (~7494) was broken last week, placing the ball in the bulls court heading into the start of the new month. Daily momentum indicators remain on an upswing, moving above the declining path that had been charted since the end of May. Almost in an instant, the market has taken away every technical argument that the bears had been holding onto amidst the momentum/growth unwind over the past couple of months and the bias for stocks has to be placed on the upside. In the Seasonal Advantage Portfolio that we manage for clients at CastleMoore, we never made any changes in our allocations following the abnormal July weakness. Following a first half performance in the Seasonal Advantage Portfolio that was well ahead of our own benchmark (as well as all major equity benchmarks in the market), we have had a view to expect strength for the start of the second half of the year, aligning with the optimism that the manufacturing economy is expressing. Our stance is now paying off. Earnings season has provided the cover to the headline threats in the market and, ultimately, the positive intermediate-term trajectory of the market persists. Subscribers can view what we are targeting in our list of market segments to either Accumulate or Avoid.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- US Employment Situation and the investment implications within
- Canada Labour Force Survey and the bifurcation in the economy
- Interest Rates and US Dollar
- Gold
- Sector Positioning
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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.77.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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