The US Dollar Index is breaking out of its trend of lower-lows and lower-highs and this poses risks to stocks and commodities.

*** 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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RCM Technologies, Inc. (NASD:RCMT) Seasonal Chart

Schwab US Dividend Equity ETF (AMEX:SCHD) Seasonal Chart

BMO Dow Jones Industrial Average Hedged to CAD Index ETF (TSE:ZDJ.TO) Seasonal Chart

Air Products and Chemicals, Inc. (NYSE:APD) Seasonal Chart

Steelcase, Inc. (NYSE:SCS) Seasonal Chart

Ingredion Inc. (NYSE:INGR) Seasonal Chart

Lamar Advertising Co. (NASD:LAMR) Seasonal Chart

Paychex, Inc. (NASD:PAYX) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks closed higher to start the week as investors brace for a number of key economic data points through the week ahead.  The S&P 500 Index closed with a gain of two-thirds of one percent, bouncing from a point of support around the 20-day moving average.  While the price action over the past couple of sessions has brought some relief to the direction of momentum indicators, MACD remains on the verge of charting a bearish crossover versus its signal line.  The implied sell signal is being hinted around the mid-point to the momentum indicator’s span, which would start to ingrain characteristics of a bearish trend if confirmed.  Gap resistance between 4550 and 4575 continues to act as a cap to this market as the digestion of the summer rally gains attributed to the normal third quarter volatility/weakness progresses.  Remember, levels down to June’s breakout point at 4200 remain fair game in order to keep the more intermediate rising path of the market stemming from the October low intact.  Above this hurdle, using weakness between now and the middle of October to accumulate desired equity exposure may provide the desired setup for the best six month of the year timeframe for stocks.

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

TSE Composite