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Equity Clock

Equity Clock - Market Outlook for June 14, 2022

While the charts appear outright horrific, this is not the time to become more negative in investment portfolios as sentiment reaches another bearish extreme.

*** 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 Materials Index ETF (TSE:XMA.TO) Seasonal Chart

iShares S&P/TSX Capped Materials Index ETF (TSE:XMA.TO) Seasonal Chart

Invesco QQQ Trust (NASD:QQQ) Seasonal Chart

Invesco QQQ Trust (NASD:QQQ) Seasonal Chart

Kinross Gold Corp. (TSE:K.TO) Seasonal Chart

Kinross Gold Corp. (TSE:K.TO) Seasonal Chart

iShares S&P/TSX Global Gold Index ETF (TSE:XGD.TO) Seasonal Chart

iShares S&P/TSX Global Gold Index ETF (TSE:XGD.TO) Seasonal Chart

Infinity Pharmaceuticals, Inc. (NASD:INFI) Seasonal Chart

Infinity Pharmaceuticals, Inc. (NASD:INFI) Seasonal Chart

Myriad Genetics, Inc. (NASD:MYGN) Seasonal Chart

Myriad Genetics, Inc. (NASD:MYGN) Seasonal Chart

 

 

Super Simple Seasonal Portfolio


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The Markets

Stocks fell under significant pressure on Monday as fears pertaining to the state of inflationary pressures and the path toward normalization of monetary policy had investors shedding risk.  The S&P 500 Index fell by just less than 4%, undercutting the May low at 3810 and once again confirming the path of lower-lows and lower-highs.  The moves over the past three sessions have charted a three black crows pattern, which consists of consecutive long-bodied candlesticks with daily closes around the lows of the session.  While theory suggests that this pattern sets the stage for lower values ahead, it is typically observed as a reversal of an uptrend, something that we have not seen since the end of last year.  Either way, the action over the last few sessions points to the flood gates being opened and investors just wanting out.  Declining trendline support for the benchmark can be pegged around 3735, a hurdle that was tested at the lows of the session, but two zones of gap resistance overhead creates hurdles that are in a position to cap any rebound attempt.  Monday’s downside gap can be plotted between 3840 and 3900 and Friday’s downside gap is apparent between 3975 and 4020.  While we could see a gap-fill in the days ahead given how short-term oversold the market has become, investors may use the opportunity to sell into these zones should they be tested.  MACD has triggered a renewed sell signal following Monday’s downfall as, similar to prices, a path of lower-lows and lower-highs resumes.  Unfortunately, while still early to conclude definitively, we are obviously seeing degradation of the base that we had been expecting of the market heading into the back half of June, something that was speculated to draw in broader participation for a more sustained period of strength for stocks between the end of June and into the month of July.  The outcome of the FOMC meeting on Wednesday is the next pivotal event for the market and it will provide legitimacy over whether the recent price action in the market over the past couple days following the release of Consumer Price Index report was justified.

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Seasonal charts of companies reporting earnings today:

Motorcar Parts of America, Inc. Seasonal Chart RF Industries, Ltd. Seasonal Chart Jianpu Technology Inc. Seasonal Chart Kaspien Holdings Inc. Seasonal Chart

 

S&P 500 Index

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TSE Composite

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