The latest read on the Petroleum Status in the US is providing a very interesting setup for the seasonal trade in the energy sector that starts next month.

*** 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 S&P/TSX Capped Information Technology Index ETF (TSE:XIT.TO) Seasonal Chart

Invesco KBW High Dividend Yield Financial ETF (NASD:KBWD) Seasonal Chart

Schwab US Large-Cap ETF (NYSE:SCHX) Seasonal Chart

SPDR S&P Telecom ETF (NYSE:XTL) Seasonal Chart

Silvercorp Metals Inc. (TSE:SVM.TO) Seasonal Chart

Dominion Lending Centres Inc. (TSE:DLCG.TO) Seasonal Chart

Barrick Gold Corp. (NYSE:GOLD) Seasonal Chart

Lennar Corp. (NYSE:LEN) Seasonal Chart

Skechers Usa, Inc. (NYSE:SKX) Seasonal Chart

Pilgrims Pride Corp. (NASD:PPC) Seasonal Chart

Teck Resources Ltd. (TSE:TECK/B.TO) Seasonal Chart

Veeco Instruments, Inc. (NASD:VECO) Seasonal Chart

Algonquin Power & Utilities Corp. (NYSE:AQN) Seasonal Chart

CVR Partners LP (NYSE:UAN) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

The persistency of the strength in the US Dollar continues to weigh on the positivity that had developed in the equity market following last week’s Republican election sweep.  The S&P 500 Index closed down by six-tenths of one percent, moving slightly below the important psychological threshold and the year-end target of many analysts at 6000.  Gap support remains unfilled between Tuesday’s close at 5783 and Wednesday’s open at 5864, a zone that looks reasonable to be filled, to some degree, before the march higher aligned with seasonal norms continues around the US Thanksgiving holiday.  On a intermediate-term scale, there remains greater evidence of support than resistance, presenting characteristics of a bullish trend that remains enticing for the strength that is normally realized in the market at year-end.  MACD has curled higher above its middle line following the surge in prices in recent days, reconfirming characteristics of a bullish trend.  We continue to like how our list of candidates in the market to Accumulate and to Avoid is positioned, but we are cognizant of changing market dynamics as dollar and rate headwinds grow.  We will be scrutinizing whether any changes are required in the days/weeks ahead as the price action evolves.

 

 

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite