A better than average change in employment for January failed to act as the catalyst to break the cap that overhangs the equity market.

*** 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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GSK Plc (NYSE:GSK) Seasonal Chart

Veren Inc. (NYSE:VRN) Seasonal Chart

China Online Education Group (NYSE:COE) Seasonal Chart

Firan Technology Group Corp. (TSE:FTG.TO) Seasonal Chart

Consumer Staples Select Sector SPDR Fund (NYSE:XLP) Seasonal Chart

Radiant Logistics Inc. (AMEX:RLGT) Seasonal Chart

Central Garden & Pet Co. (NASD:CENT) Seasonal Chart

Iridium Communications Inc. (NASD:IRDM) Seasonal Chart

Baytex Energy Corp. (NYSE:BTE) Seasonal Chart

Suncor Energy, Inc. (TSE:SU.TO) Seasonal Chart

Genco Shipping & Trading Ltd. (NYSE:GNK) Seasonal Chart

Vermilion Energy Inc. (NYSE:VET) Seasonal Chart

Teekay Corp. (NYSE:TK) Seasonal Chart

Brookfield Asset Management Inc. (NYSE:BAM) Seasonal Chart

 

Super Simple Seasonal Portfolio

 

The Markets

Stocks ended lower on Friday following the release of the payroll report for January as traders remained cautious about pushing stocks to new heights amidst ongoing concerns pertaining to a tariff war.   The S&P 500 Index fell by nearly one percent, reaching back to support around the 20-day moving average (~6009).  The benchmark remains below the upper limit of gap resistance that was opened during the Artificial Intelligence fuelled selloff recorded a week ago Monday between 6017 and 6088.  The market remains in a tenuous state as broader momentum dwindles.  Momentum indicators have negatively diverged from price since the middle of last year, highlighting the waning enthusiasm investors had been expressing towards tech-heavy benchmarks, like this, amidst extreme valuations.  We continue to monitor the potential impact of the apparent rotation in the market on our list of candidates in the market to Accumulate and to Avoid and we have adopted more of a neutral appearance as segments that were previously noted as Accumulate candidates fall off (eg. Technology) and as areas to Avoid are added.

Seasonal charts of companies reporting earnings today:

 

S&P 500 Index

 

TSE Composite