September is the weakest month of the year for stocks with the S&P 500 Index averaging a decline of 1.2%, based on data from the past five decades.

*** 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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SPDR S&P North American Natural Resources ETF (AMEX:NANR) Seasonal Chart

Invesco S&P 500 Enhanced Value ETF (AMEX:SPVU) Seasonal Chart

JPMorgan U.S. Value Factor ETF (AMEX:JVAL) Seasonal Chart

iShares U.S. Dividend and Buyback ETF (AMEX:DIVB) Seasonal Chart

BMO MSCI Canada Value Index ETF (TSE:ZVC.TO) Seasonal Chart

BMO US High Dividend Covered Call Hedged to CAD ETF (TSE:ZWS.TO) Seasonal Chart

Hain Celestial Group, Inc. (NASD:HAIN) Seasonal Chart

JetBlue Airways Corp. (NASD:JBLU) Seasonal Chart

Carnival Corp. (NYSE:CCL) Seasonal Chart

Invesco Dow Jones Industrial Average Dividend ETF (AMEX:DJD) Seasonal Chart

SPDR S&P Regional Banking ETF (NYSE:KRE) Seasonal Chart

BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF (TSE:ZWA.TO) Seasonal Chart

SPDR MSCI ACWI IMI ETF (AMEX:SPGM) Seasonal Chart

National HealthCare Corp. (AMEX:NHC) Seasonal Chart

Methode Electronics, Inc. (NYSE:MEI) Seasonal Chart

Group I Automotive Inc. (NYSE:GPI) Seasonal Chart

Exxon Mobil Corp. (NYSE:XOM) Seasonal Chart

Amphenol Corp. (NYSE:APH) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks drifted higher in the final session of August as the typical jovial bias that surrounds the Labor Day holiday supported prices into the final session of the month.  The S&P 500 Index produced a gain of just over one percent, still remaining 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 5486 and 5503, 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