Watch the reaction of the US Dollar Index following the release of May’s payroll results given that the positive tilt of the currency has recently been acting as a headwind against stocks.
*** 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 little changed on Thursday as traders await the always important monthly payroll report that is slated to be released on Friday. The S&P 500 Index ended lower by a mere two basis points (0.02%), remaining pinned to record-high territory. The benchmark continues find support at the 50-day moving average (5188), forcing traders to move up their stops from the more intermediate-term support at the 100-day moving average (5107). MACD has abruptly crossed back above its signal line (a buy signal), but the divergence versus price that this momentum indicator is showing highlights the lack of buying demand around these heights. Beyond the first few days of June, seasonal tendencies for stocks tends to flip negative for the mean-reversion/portfolio rebalance period that dominates through the middle/end of the month, making this period ahead an inopportune time to be aggressive in risk (stocks). Traders can look to use weakness through the weeks ahead to add back risk for the summer rally period that follows through the month of July.
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Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
