An increasing number of banks are tightening lending conditions, an attribute of an economy that is headed towards a recession.

*** 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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Brown-Forman Corp. – Class B (NYSE:BF/B) Seasonal Chart

Kimberly Clark Corp. (NYSE:KMB) Seasonal Chart

Flowers Foods, Inc. (NYSE:FLO) Seasonal Chart

Birchcliff Energy Limited (TSE:BIR.TO) Seasonal Chart

FlexShares Quality Dividend Defensive Index Fund (AMEX:QDEF) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks pushed higher on Tuesday as investors continue to cover their shorts ahead of the pivotal Consumer Price Index report that is slated to be released on Thursday.  The S&P 500 Index closed with a gain of seven-tenths of one percent, edging slightly above the pivotal 3900 level that has acted in a position of a cap for the market benchmark since the middle of December.  The benchmark remains supported by November’s upside gap between 3770 and 3860, a hurdle that has opened the prospect to head-and-shoulders bottoming patterns on this benchmark and other indexes across the market.  Formidable resistance and the hurdle that everyone has their eye on is the declining trendline that now hovers around 4,000, a hurdle that closely aligns with the declining 200-day moving average. Momentum indicators triggered buy signals at the end of last week with MACD crossing above its signal line.

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite