Consumer spending snapped back in July, but a more discerning consumer mentality remains.
*** 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
Super Simple Seasonal Portfolio
This content is exclusive to subscribers of EquityClock.com. Please Log In or Subscribe to proceed.
The Markets
Stocks surged on Thursday, moving beyond their recent volatility shock, following the release of a much stronger than expected read of retail sales for the month of July. The S&P 500 Index closed higher by 1.61%, gaping above implied resistance at the 50-day moving average (5460) that threatened to cap the short-term rebound from the August 5th low. The rising intermediate-term trend of the equity market remains alive, for now, as the benchmark shows little effort breaking down levels of resistance overhead. Short-term resistance at the August high of 5566 is now the test, after which the all-time high at 5669 is the hurdle to watch. The degradation in economic fundamentals in recent months has risked resulting in higher than average volatility through this period of weakness for stocks in August, September, and October, and the desire is to continue to lean on the side of caution in risk assets so long as the macro economic backdrop expresses uncertainty. Longer-term momentum of stocks can be seen waning and the recent “shock in stocks” amidst the short-volatility collapse is likely to remain fresh on investor minds as we head into the heart of this erratic timeframe for the equity market over the next eight or nine weeks. No reason to stretch out on the risk spectrum with seasonal, fundamental, and technical uncertainties present.
This content is exclusive to subscribers of EquityClock.com. Please Log In or Subscribe to proceed.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
