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Stock Market Outlook for January 20, 2022


Until the trends of risk aversion abate, caution in portfolio positioning remains appropriate.

 

Real Time Economic Calendar provided by Investing.com.

 

 

*** 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.

Kilroy Realty Corp. (NYSE:KRC) Seasonal Chart

Meritage Homes Corp. (NYSE:MTH) Seasonal Chart

MercadoLibre Inc. (NASD:MELI) Seasonal Chart

ION Geophysical Corp. (NYSE:IO) Seasonal Chart

Canadian Natural Resources (NYSE:CNQ) Seasonal Chart

Farmers National Banc Corp. (NASD:FMNB) Seasonal Chart

Stag Industrial Inc. (NYSE:STAG) Seasonal Chart

Physicians Realty Trust (NYSE:DOC) Seasonal Chart

Ellington Residential Mortgage REIT (NYSE:EARN) Seasonal Chart

United States Brent Oil Fund (NYSE:BNO) Seasonal Chart

iShares MSCI United Kingdom ETF (NYSE:EWU) Seasonal Chart

 

 

 

The Markets

Stocks dropped for a second day as the market starts to lose traction at intermediate levels of support.  The S&P 500 Index fell by almost one percent, closing below its 100-day moving average for the first time since the start of October.  A short-term trend of lower-highs and lower-lows continues to play out as a head-and-shoulders topping pattern becomes fulfilled.  The weakness continues to play to our call that January would be a tough month for the equity market, but with no material degradation in the fundamentals that we track, we will desire to be a buyer of this dip with the funds that we have set aside in our Super Simple Seasonal Portfolio.  We are not at that point, yet, where selling capitulation can be concluded, but, when it does, we will want to ramp up risk in our portfolio again.

Today, in our Market Outlook to subscribers, we discuss the following:

  • Ongoing evidence of risk aversion
  • The break of the trend of underperformance of Emerging Markets
  • US Housing Starts and stocks in the Forestry industry
  • Canadian Consumer Price Index (CPI) and one of the few categories that saw the cost to consumers decline at the fastest pace on record

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Sentiment on Wednesday, as gauged by the put-call ratio, ended slightly bullish at 0.88.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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