The recent string of outperformance of the Dow Jones Industrial Average could become the norm if seasonality has its way.

*** 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 Core MSCI Canadian Quality Dividend Index ETF (TSE:XDIV.TO) Seasonal Chart

Goldman Sachs ActiveBeta Japan Equity ETF (AMEX:GSJY) Seasonal Chart

iShares Core MSCI EAFE IMI Index ETF (CAD-Hedged) (TSE:XFH.TO) Seasonal Chart

CapStar Financial Holdings, Inc. (NASD:CSTR) Seasonal Chart

Tetra Tech Inc. (NASD:TTEK) Seasonal Chart

iShares MSCI Global Agriculture Producers ETF (AMEX:VEGI) Seasonal Chart

Schwab US Dividend Equity ETF (AMEX:SCHD) Seasonal Chart

Invesco KBW Regional Banking ETF (NASD:KBWR) Seasonal Chart

BMO MSCI EAFE Hedged to CAD Index ETF (TSE:ZDM.TO) Seasonal Chart

Trustmark Corp. (NASD:TRMK) Seasonal Chart

Msc Industrial Direct Co. (NYSE:MSM) Seasonal Chart

Invesco BuyBack Achievers ETF (NASD:PKW) Seasonal Chart

BMO Canadian High Dividend Covered Call ETF (TSE:ZWC.TO) Seasonal Chart

Global X U.S. Infrastructure Development ETF (AMEX:PAVE) Seasonal Chart

SPDR S&P 500 High Dividend ETF (AMEX:SPYD) Seasonal Chart

SPDR Russell 1000 Yield Focus ETF (AMEX:ONEY) Seasonal Chart

SPDR S&P 1500 Value Tilt ETF (AMEX:VLU) Seasonal Chart

Invesco Dynamic Large Cap Value ETF (NYSE:PWV) Seasonal Chart

Chevron Corp. (NYSE:CVX) Seasonal Chart

iShares Currency Hedged MSCI EAFE ETF (AMEX:HEFA) Seasonal Chart

SPDR Dow Jones Industrial Average ETF (NYSE:DIA) Seasonal Chart

iShares Core Dividend Growth ETF (AMEX:DGRO) Seasonal Chart

Allison Transmission Holdings, Inc. (NYSE:ALSN) Seasonal Chart

Sysco Corp. (NYSE:SYY) Seasonal Chart

Goodyear Tire & Rubber Co. (NASD:GT) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

The market shook off much of the negative reaction to earnings from Artificial Intelligence (AI) darling NVDIA on Thursday and bid a broader basket of stocks higher. The S&P 500 Index closed essentially unchanged, failing to book the gain that was recorded earlier in the session and still showing signs of stall within a zone of implied resistance between 5622 and 5658, representing the July 17th downside gap.  Hint of a short-term peak persists as the bulls show their reluctance adding to risk at current heights.  The threat of an intermediate-term double-top pattern below the all-time high recorded during the summer rally period through the first half of July remains apparent, a chart setup that would set the stage for the declines that are normal for stocks during the month of September.  The 20 and 50-day moving averages at 5471 and 5500, respectively, provide initial points of support should a rollover around present levels commence.  The zone loosely aligns with August 15th upside gap that saw these two variable hurdles broken as resistance.  MACD and RSI can be seen rolling over, revealing a negative divergence versus price that highlights the waning of buying demand heading into the traditionally weak month for equity market performance in September. Caution in risk assets remains appropriate, particularly while within this period of seasonal volatility and while the fundamental backdrop appears uncertain.

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite