| Followers | 219 |
| Posts | 247348 |
| Boards Moderated | 2 |
| Alias Born | 04/06/2006 |
Tuesday, April 25, 2017 4:50:45 AM
Stock Market Outlook for April 25, 2017 and Seasonal Charts>
**NEW** As part of the ongoing process to offer new and up-to-date information regarding seasonal and technical investing, we are adding a section to the daily reports that details the stocks that are entering their period of seasonal strength, based on average historical start dates. 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:
No stocks identified for today
The Markets
Stocks surged on Monday as investors breathed a sigh of relief following the results of the French election. The S&P 500 Index gained over 1%, gapping above the triangle consolidation pattern that had dominated trading activity for almost two months. The next major hurdle is the all-time high around 2400. MACD crossed above its signal line, triggering a new buy signal as the period of seasonal strength for the large-cap benchmark nears its end. Financial stocks, particularly banks, topped the leaderboard given the rotation away from defensive assets, such as bonds, and into more cyclical areas of the market. The 7-10 year treasury bond ETF (IEF) is showing signs of rolling over from its 200-day moving average, although the fixed income ETF bounced from short-term support at the 20-day moving average at the lows of the session. Previous resistance, now support, remains around $106. The bond market has become an important sentiment gauge in recent weeks, providing indication of risk aversion and an unwinding of a crowded trade that involved negative bets on the asset class amidst the expectation of rising rates. Gap resistance around $109 remains the unfulfilled upside target of the breakout of the trading range between $103 and $106. The target, if fulfilled, may provide an ideal opportunity to reload the short positions for this defensive asset class in order to play the emerging negative trend in prices.
Note the seasonal charts at the bottom of the report. The equity market is quickly reaching the end to its average period of strength that runs between October and May. Average returns for the S&P 500 Index in the months ahead are flat-lining as the erratic trading pattern that spans the summer months gets set to take hold. This is the time of year when investors are best suited to reduce exposure in cyclical assets, favouring defensive allocations in order to shield against the volatility that is typical in the July through September timeframe. Investors have been noticeably risk-off through the past couple of months, bidding up bond prices and defensive equity sectors, such as consumer staples, utilities and REITs, making them some of the highest valued positions in the market. The safe-haven characteristics of these defensive assets may come under threat if investors start to question the high valuations of these market segments. The SPDR Consumer Staples ETF (XLP) closed at a new all-time high during Monday’s session, trading higher amidst the risk-on rally in stocks.
Much More @ http://www.equityclock.com/2017/04/24/stock-market-outlook-for-april-25-2017/
**NEW** As part of the ongoing process to offer new and up-to-date information regarding seasonal and technical investing, we are adding a section to the daily reports that details the stocks that are entering their period of seasonal strength, based on average historical start dates. 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:
No stocks identified for today
The Markets
Stocks surged on Monday as investors breathed a sigh of relief following the results of the French election. The S&P 500 Index gained over 1%, gapping above the triangle consolidation pattern that had dominated trading activity for almost two months. The next major hurdle is the all-time high around 2400. MACD crossed above its signal line, triggering a new buy signal as the period of seasonal strength for the large-cap benchmark nears its end. Financial stocks, particularly banks, topped the leaderboard given the rotation away from defensive assets, such as bonds, and into more cyclical areas of the market. The 7-10 year treasury bond ETF (IEF) is showing signs of rolling over from its 200-day moving average, although the fixed income ETF bounced from short-term support at the 20-day moving average at the lows of the session. Previous resistance, now support, remains around $106. The bond market has become an important sentiment gauge in recent weeks, providing indication of risk aversion and an unwinding of a crowded trade that involved negative bets on the asset class amidst the expectation of rising rates. Gap resistance around $109 remains the unfulfilled upside target of the breakout of the trading range between $103 and $106. The target, if fulfilled, may provide an ideal opportunity to reload the short positions for this defensive asset class in order to play the emerging negative trend in prices.
Note the seasonal charts at the bottom of the report. The equity market is quickly reaching the end to its average period of strength that runs between October and May. Average returns for the S&P 500 Index in the months ahead are flat-lining as the erratic trading pattern that spans the summer months gets set to take hold. This is the time of year when investors are best suited to reduce exposure in cyclical assets, favouring defensive allocations in order to shield against the volatility that is typical in the July through September timeframe. Investors have been noticeably risk-off through the past couple of months, bidding up bond prices and defensive equity sectors, such as consumer staples, utilities and REITs, making them some of the highest valued positions in the market. The safe-haven characteristics of these defensive assets may come under threat if investors start to question the high valuations of these market segments. The SPDR Consumer Staples ETF (XLP) closed at a new all-time high during Monday’s session, trading higher amidst the risk-on rally in stocks.
Much More @ http://www.equityclock.com/2017/04/24/stock-market-outlook-for-april-25-2017/
Pray for A Pain Free Day!
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
