Equity Clock - Market Outlook for October 16, 2024

Interest rate sensitive segments have pulled back and are now showing positive reaction to levels of rising trendline support.

*** 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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WSP Global Inc. (TSE:WSP.TO) Seasonal Chart

Hawaiian Electric Industries Inc. (NYSE:HE) Seasonal Chart

Spirit Airlines, Inc. (NYSE:SAVE) Seasonal Chart

SPDR S&P Aerospace & Defense ETF (NYSE:XAR) Seasonal Chart

Alient Inc. (NASD:ALNT) Seasonal Chart

Pacer US Export Leaders ETF (AMEX:PEXL) Seasonal Chart

Super Simple Seasonal Portfolio

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The Markets

Stocks slipped on Tuesday amidst a wobble that surrounded the reaction to earnings season, which continues to become busier by the day. The S&P 500 Index closed down by around three-quarters of one percent, erasing the gain that was achieved in the slower Columbus Day holiday session on Monday. Support continues to be pinned at previous resistance of 5669, along with the 20-day moving average that is hovering around 5741. Despite evidence of waning upside momentum within this tail-end to the period of seasonal volatility for stocks, this market is showing greater evidence of support than resistance, a characteristic of a bullish trend. We continue to like the groups that are on our list of Accumulate candidates, but there are certainly segments of the market to Avoid. The ability of the market, as a whole, to overcome the period of seasonal weakness for stocks rather unscathed is certainly telling of the relentless demand, despite the fact that the risk-reward, broadly, is not very attractive. The start of the best six months of the year for stocks is around three weeks away and there is a need from a seasonal perspective to ramp up risk exposure at some point.