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Stock Market Outlook for May 25, 2022


Our average buy date to the technology sector has arrived, but will it prove to be correct?  Earnings from NVIDIA on Wednesday could be the tell.

 

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.

TJX Cos., Inc. (NYSE:TJX) Seasonal Chart

Camden National Corp. (NASD:CAC) Seasonal Chart

Dynagas LNG Partners LP (NYSE:DLNG) Seasonal Chart

Orla Mining Ltd. (TSE:OLA.TO) Seasonal Chart

ProShares Ultra MSCI Japan (NYSE:EZJ) Seasonal Chart

 

 

 

The Markets

Stocks pulled back on Tuesday, cutting in to Monday’s strong start to the week, as an earnings warning from social media company Snap kept the market on edge pertaining to corporate profitability amidst slowing momentum in the economy.  The S&P 500 Index closed down by eight-tenths of one percent, moving into the upside gap that started the week between 3904 and 3916.  Declining trendline support, currently just below 3800, continues to limit downside momentum as shorter-term momentum indicators positively diverge from price.  Levels of resistance overhead remain prominent around major moving averages, as well as horizontal levels at 4150 and 4280.  The risk-reward for stocks in the near-term continues to look enticing, but the potential bounce into the start of June may only be a short-term reprieve in selling pressures before the bears become reinvigorated around levels of resistance through the first couple of weeks of the next month.  While we continue to sit with our ramped up equity exposure that was enacted last week in the Super Simple Seasonal Portfolio to take advantage of the enticing risk-reward that is currently upon us, sufficient offsets continue to be presented by exposure to long duration bonds and the commodity market.  Bond prices remain on a path of outperformance versus equities, a trend that is typical beginning around the start of May.

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

  • The technology sector and our average buy date of May 25th
  • Watching earnings from NVDA
  • Notable changes in this week’s chart books: Find out what we have upgraded to Accumulate ahead of the start of its optimal holding period
  • New Home Sales in the US and the stocks of the builders

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Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

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Sentiment on Tuesday, as gauged by the put-call ratio, ended neutral at 1.00.

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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