As core-cyclical sectors increasingly carve out head-and-shoulders topping patterns, Communications Services has carved out an opposing bottoming setup as its optimal holding period continues.
*** 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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Super Simple Seasonal Portfolio
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The Markets
Stocks surged on Thursday as a positive reaction to earnings from Meta (Facebook) reinvigorated the much loved growth trade that has been flourishing this year. The S&P 500 Index closed with a gain of almost two percent, instantly erasing the declines that had been recorded on the benchmark over the past couple of sessions amidst the return of concerns pertaining to the banking industry. The benchmark is attempting to confirm support around the cloud of major moving averages in the range of 3950 to 4050, the upper limit of which was tested during the Wednesday session. The horizontal range of resistance between 4100 and 4200 remains the significant barrier to crack in order to alleviate the ceiling on this market that has been in place for almost a year. Seasonally, just a few more days remain in the best six months of the year trend for stocks that peaks at the start of May, following which strength in core-cyclical sectors (energy, materials, industrials, financials) fades and defensive segments of the market (staples, health care, utilities, REITs, and technology) become core allocations within equity portfolios.
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Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
