A hammer candlestick around significant support for Oil is signalling the start of the period of seasonal strength in the commodity and the energy sector.
*** 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 closed higher on Monday, extending their strength that had been derived by the expectation that the Fed is likely done raising rates. The S&P 500 Index closed with a gain of just less than half of one percent, continuing to push towards the record high and the next level of resistance around 4800. The Relative Strength Index (RSI) is now above 80, showing the most overbought reading since September of 2020, keeping the risk of a near-term pullback elevated given the buying exhaustion that could materialize under this backdrop. Seasonal tendencies push back against this contention with a positive bias of risk assets the norm through the remaining weeks of the year. All in all, this leaves our hands tied with the status quo, unwilling to add new equity exposure around this height, but certainly not contemplating selling either. The start of next year could see that change, but remaining fully invested across stocks and bonds through the weeks ahead remains prudent and we can look for our next cue to move in the portfolio after the end of year holidays. Levels of support below the large-cap benchmark remain plentiful and characteristics of a bullish trend over an intermediate term perspective persist.
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Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
