While REITs are the only core-defensive sector that have struggled to attract buying demand in this risk-off market, Residential REITs are providing a setup to be attracted to.

*** 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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Opko Health Inc. (NASD:OPK) Seasonal Chart

Vanguard Information Technology ETF (NYSE:VGT) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Markets ended mildly higher on Monday, despite a reversal in market titan Apple (AAPL) following their Artificial Intelligence (AI) operating system integration announcement.  The S&P 500 Index closed with a gain of just over a quarter of one percent, enough to punch out another record closing high.  The large-cap benchmark continues to peg support at its 50-day moving average (5192), allowing traders to move up their stops to long positions from the more intermediate-term level of support at the 100-day average (5119).  Negative momentum divergences remain intact, failing to confirm the new highs in price.  Seasonal tendencies suggest mitigating risk (stock) exposure in portfolios though the next few weeks given the mean-reversion/portfolio re-balancing that is normal ahead of the end of the quarter, but weakness that materializes in during this timeframe typically provides buying opportunities for the summer rally period in stocks that follows.

 

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite