Reversal candlesticks charted on Monday are suggesting rotation away from former Growth (Technology) darlings and towards Value laggards.

*** 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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O’Reilly Automotive, Inc. (NASD:ORLY) Seasonal Chart

Microbix Biosystems, Inc. (TSE:MBX.TO) Seasonal Chart

TMX Group Inc. (TSE:X.TO) Seasonal Chart

SCP Pool Corp. (NASD:POOL) Seasonal Chart

Evolution Petroleum Corp. (AMEX:EPM) Seasonal Chart

iShares Canadian Growth Index ETF (TSE:XCG.TO) Seasonal Chart

Brown-Forman Corp. – Class A (NYSE:BF-A) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks traded mixed on Monday as funds came out of former growth (Technology) darlings and rotated towards value counterparts that have lagged in recent weeks/months. The S&P 500 Index gained 0.16% on Monday, retracing back to horizontal support that was broken on Friday at 5850.  The horizontal threshold presents the neckline to a head-and-shoulders topping pattern, a bearish setup that proposes a downside target of 5670. Superseding any patterns that can be picked out is just the mere appearance that resistance, such as around the 20-day moving average, is starting to have a greater influence than support.  Reason to conclude the shift of trend has been provided.  We continue to scrutinize the potential impact of this evolving shift on our list of candidates in the market to Accumulate and to Avoid and we are expecting that our list will show more of a neutral appearance through the weeks ahead as segments that were previously noted as Accumulate candidates fall off and areas to Avoid are added.

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Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite