Some of the cheapest stocks in the market with fundamental tailwinds behind them are moving above significant horizontal support.

*** 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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Allstate Corp. (NYSE:ALL) Seasonal Chart

WW Grainger, Inc. (NYSE:GWW) Seasonal Chart

Progressive Corp. (NYSE:PGR) Seasonal Chart

1-800 FLOWERS.COM, Inc. (NASD:FLWS) Seasonal Chart

Ero Copper Corporation (TSE:ERO.TO) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks gained to close out the month of January as investors continue to neutralize negative bets ahead of month-end reporting, the upcoming FOMC announcement, and the ongoing release of earnings reports.  The S&P 500 Index ended higher by 1.46%, erasing the loss that was realized to start the week.  The large-cap benchmark remains above former declining trendline resistance, but below the highs set in the month of December at 4100, presenting a critical line in the sand that is keeping the path of lower-highs on an intermediate to long-term basis intact.  Momentum indicators continue to show early signs of rolling over with the MACD histogram increasingly narrowing back towards 0.  The technical framework to the market continues to give bias to a neutral view and we are waiting for the trend to evolve to suggest either and bullish of bearish mentality for the months ahead.

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite