Just as headline prints of consumer prices alleviate, it may be the time to consider inflation hedges for portfolios.

*** 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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MFS Intermediate High Income Fund (NYSE:CIF) Seasonal Chart

SPDR S&P Bank ETF (NYSE:KBE) Seasonal Chart

Invesco WilderHill Clean Energy ETF (NYSE:PBW) Seasonal Chart

Cohen & Steers Quality Income Realty Fund Inc. (NYSE:RQI) Seasonal Chart

Talon Metals Corp. (TSE:TLO.TO) Seasonal Chart

Redfin Corp (NASD:RDFN) Seasonal Chart

Sunstone Hotel Investors, Inc. (NYSE:SHO) Seasonal Chart

Core Laboratories N V (NYSE:CLB) Seasonal Chart

Brandywine Realty Trust (NYSE:BDN) Seasonal Chart

Bombardier Inc. (TSE:BBD/B.TO) Seasonal Chart

Acadia Pharmaceuticals Inc. (NASD:ACAD) Seasonal Chart

Ark Restaurants Corp. (NASD:ARKR) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks traded mildly lower on Tuesday as traders start to digest the strength recorded in recent days.  The S&P 500 Index slipped by a mere two-tenths of one percent, trading within the span of the prior day’s session.  It would take a break below Monday’s low at 4510 to suggest a shift of the short-term rising trend that has benefited prices since the end of October.  The Relative Strength Index has fallen out of overbought territory above 70 and the MACD histogram continues to narrow, which are typically considered near-term sell signals.  There is nothing wrong with the intermediate path of stocks, which is supported by rising major moving averages, but a digestion in the near-term seems almost inevitable, particularly as the market gets into the tax-loss selling period in the first half of December.  Levels down to the 50-day moving average at 4342 are fair game on a retracement move, but this would provide a more ideal setup to participate in the traditional Santa Claus rally that starts in a month from now.  Yields and the dollar have stepped back from their positions as headwinds that burdened equity prices between July and October and, so long as these influences do not re-flare, reason to maintain a positive intermediate/seasonal view of stocks exists.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

TSE Composite