Over the past 20 years, July has been the strongest month of the year for the S&P 500 Index with gains averaging 2.3% and three out of four periods ending higher.

*** 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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iShares MSCI UAE Capped ETF (NASD:UAE) Seasonal Chart

Grid Dynamics Holdings Inc. (NASD:GDYN) Seasonal Chart

Consolidated Edison, Inc. (NYSE:ED) Seasonal Chart

iShares U.S. Technology ETF (NYSE:IYW) Seasonal Chart

Richelieu Hardware Ltd. (TSE:RCH.TO) Seasonal Chart

Radian Group, Inc. (NYSE:RDN) Seasonal Chart

EPAM Systems, Inc. (NYSE:EPAM) Seasonal Chart

 

Note: Monday is a holiday in Canada (Canada Day) and, as a result, our next Market Outlook report will be released on Tuesday.  Our weekly chart books will be updated, as per usual, on Sunday, but the commentary will be provided on Tuesday.  Happy Canada Day to our Canadian audience!

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks closed slightly lower in the last session of the second quarter as portfolio managers conducted their final trades to balance their books.  The S&P 500 Index closed with a loss of four-tenths of one percent, charting an indecisive doji candlestick within the tight consolidation span that it has been within for the past week between 5445 and 5500.  A break of the short-term span would have upside or downside implications of the same magnitude, or 55 points (~1.0%).  Major moving averages continue to fan out positively below price, providing a number of points of support below to carry price.  The Relative Strength Index (RSI) is “bobbing” around overbought territory at 70, highlighting a bit of a stretched state heading through the notoriously positive timeframe for stocks that is upon us, but, ultimately, this is a characteristic of a bullish trend.  So long as characteristics of a bullish trend persist, reason to bet on the upside potential for the summer rally exists.

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite