Historically, the most volatile period for stocks is between the middle of July and the beginning of October. 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: Sarepta Therapeutics, Inc. (NASD:SRPT) Seasonal Chart Cobiz Financial Inc. (NASD:COBZ) Seasonal Chart Genworth MI Canada (TSE:MIC) Seasonal Chart Fortis Incorporated (TSE:FTS) Seasonal Chart Duke Energy Corporation (NYSE:DUK) Seasonal Chart Berkshire Hathaway, Inc. (NYSE:BRK-B) Seasonal Chart Sandy Spring Bancorp, Inc. (NASD:SASR) Seasonal Chart WD-40 Company (NASDAQ:WDFC) Seasonal Chart The Markets Stocks closed marginally higher on Friday, despite a lacklustre start to the earnings season for the banks. Shares of Citigroup, Well Fargo, and JP Morgan all traded lower following results, once again dragging on the KBW Bank Index, which continues to sit around the lows of the year. A descending triangle pattern continues to constrain the price action. The negative setup, if fulfilled, presents downside potential towards the 52-week lows charted last September. Seasonally, the Bank Index remains in a period of weakness through to the start of October. $BKX Relative to the S&P 500 For the week, the S&P 500 Index gained 1.50%, closing marginally above psychological resistance at 2800. Support at the 20-week moving average remains apparent. An inverse head-and-shoulders pattern can be implied by the price action over the six months. Momentum indicators are attempting to hold in bullish territory. For now, looking on the surface, the market looks to be in good shape, but seasonal tendencies beyond the week ahead give reason for caution. Historically, the period between mid-July and the beginning of October has been the most volatile time of year for stocks, resulting in weak equity market performance through the remainder of the third quarter. Cyclical sectors tend to weigh as economic activity wanes and upside catalysts are typically few and far between. Opportunities remain in various segments of the market through this volatile period, but their scope tends to be narrow, often pertaining to areas that are hedged against cyclical fluctuations in the economy. North of the border, the Canadian equity benchmark is showing an upward swing of its own, closing at a new weekly high. Trendline resistance remains a hurdle overhead. The benchmark has shown a consistent trend of underperformance versus US counterparts for the past decade as energy and material stocks weigh. However, over the next month and a half, the Canadian benchmark may be in a position to outperform as a result of the same sector weights. The TSX Composite has outperformed the S&P 500 Index 64% of the time over the past 25 years between the middle of July and the beginning of September as energy and gold mining stocks enter seasonally strong periods. Average return for the Canadian and US benchmarks is 0.06% and -0.77%, respectively. The Canadian Energy and Gold Mining sectors have been attempting to carve out long-term bottoms for the the past couple of years and upside breakouts could further entice buyers to these market segments that have been unloved for many years. $TSX Relative to the S&P 500 Sentiment on Friday, as gauged by the put-call ratio, ended close to neutral at 0.98. Sectors and Industries entering their period of seasonal strength: ^AXJO Relative to the S&P 500 Seasonal charts of companies reporting earnings today: S&P 500 Index TSE Composite