Some volatility/stall in the market over the near-term is reasonable as portfolio managers conduct their year-end trades; the Santa Claus rally period follows.
*** 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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Super Simple Seasonal Portfolio
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The Markets
Stocks slipped to start the week as portfolio managers conduct year-end transactions before the distractions surrounding the end-of-year holidays begin. The S&P 500 Index lost six-tenths of one percent, pulling back slightly from the record closing high charted on Friday. Support continues at the 20-day moving average (5993). Monday’s drawdown works to close the upside gap that was charted last week between 6051 and 6065, presenting a logical zone to test as support. While not definitive that the short-term trajectory of the benchmark has shifted (unlikely ahead of the Santa Claus rally period), the benchmark is moving below rising short-term support that stems from the November 19th low. On a intermediate-term basis, there remains greater evidence of support than resistance, presenting the desired backdrop for strength that is normally realized in the market at year-end. Major moving averages are all pointed higher and momentum indicators continue to gyrate above their middle lines, providing characteristics of a bullish trend. Our list of candidates in the market to Accumulate and to Avoid remains well positioned to benefit from the strength that is filtering into the market at this seasonally strong time of year, but we will scrutinize whether any changes are required as the price action evolves.
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Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
