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Technical Seasonalities
eResearch Corporation is pleased to provide technical opinions on the market from a
seasonality standpoint, courtesy of Equity Clock, a division of the Tech Talk Financial
Network. eResearch also posts, daily, the regular technical opinions provided by affiliate:
Tech Talk: TimingTheMarket.
Equity Clock (www.equityclock.com) is a market analysis company that provides,
completely FREE, technical, fundamental and seasonality analysis on a daily basis via
TimingTheMarkets.com and EquityClock.com. Equity Clock’s mission is to identify
periods of re-occurring strength among individual equities in the market using methodologies presented by some of the top analysts in the industry, including those of Donald Vialoux, author of TimingTheMarkets.com.
Donald Vialoux, co-founder of Tech Talk, is a past president and director of the Canadian
Society of Technical Analysts (CSTA). He holds the designation of Chartered Market
Technician (CMT).
Mr. Vialoux has 45 years of experience in the investment industry, including prominent positions
held at Richardson Greenshields and RBC Investments. He is the author of a daily letter on
equity markets, which is available free at TimingTheMarket.ca.
Mr. Vialoux is also the author of a weekly column published at GlobeAndMail.com that
combines technical, fundamental, and seasonality analysis. He is a frequent presenter on
Business News Network (BNN) Television. Mr. Vialoux also offers advice to the Horizons
Seasonal Rotation ETF (HAC).
eResearch was established in 2000 as Canada's first equity issuer-sponsored research organization. Our various research packages allow corporate management to choose the form of research coverage that best meets their company’s needs. We are a primary source for professional investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential to reach millions of global investors through our extensive electronic distribution network. Bob Weir, CFA: Director of Research
Note: All of the comments, views, opinions, suggestions, recommendations, etc., contained in the TechTalk/Timing The Market articles, reports, files, documents, essays, etc., and which are distributed by eResearch Corporation, are strictly those of TechTalk/Timing The Market and do not necessarily
reflect those of eResearch Corporation.
Equity Clock: Seasonality Analysis January 19, 2015
Equity Clock Stock Market Outlook
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Stock Market Outlook for Monday, January 19, 2015
HEADLINE: Today marks the average end to the period of seasonal strength for the technology sector.
The Markets Stocks ended lower on Friday (January 16) for a fifth day, once again dragged down by the financial sector following disappointing earnings from Bank of America and
Citigroup. Over the past 12 sessions, the S&P 500 Index has closed higher in only two of them, representing the worst 12-day stretch since May of 2012 when the large cap benchmark declined around 10% from peak to trough. Presently, the S&P 500 Index is down only half of that. The benchmark is now testing support at the early January low of 1992.44, a break of which suggests a measured
move down to around 1900. Reaction to the 200-day moving average, currently at 1966, will be important to determine if the longer-term positive trend remains intact.
Equity Clock Stock Market Outlook
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Unfortunately, the week ahead may not be any help to the struggling equity market. During the week following January’s expiration Friday, which starts today, the S&P 500 Index has ended lower by an average of 0.72%. Negative results were recorded in 10 of the past 20 years. As well, the week is shortened by Martin Luther King Day and the tendencies over the past 20 years have been even worse; 13 of the
past 20 holiday weeks have ended lower. The equity market typically rebounds from the January lows into the end of the month.
Of course, January’s returns, thus far, differ from the average returns during pre-election years. The S&P 500 Index has averaged a January return of 4.34% in the year prior to a presidential election as investors anticipate the change in leadership.
As well, the president is typically more accommodative and business friendly during pre-election years as he attempts to seek re-election of either himself or his party. See the pre-election year seasonality chart on the next page. Since 1950, there has only been one pre-election year that had a negative January
return; a loss of 2.74% was recorded in January of 2003. With the president seemingly taking a firm stance on a number of issues, the accommodative push may not materialize as it has in the past.
Equity Clock Stock Market Outlook
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Today marks the average end to the period of seasonal strength for the technology sector, a trade that has recorded a marginal gain since the start of the period of strength in mid-October. The technology sector tends to under-perform the broad market between now and April.
Looking at the technicals for the sector, negative setups could present further downside pressures beyond the recent declines. Apple, the largest holding within the technology sector, is showing a potential descending triangle pattern, a negative setup that could target down to $95 should support be broken at $107.
See the Apple chart on the next page.
Equity Clock Stock Market Outlook
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A similar setup is apparent on the Philadelphia Semiconductor Index, which could see downside pressures to $610 should support break at $655. The under-performing returns versus the market over the past month suggest that investor demand for stocks
in this space is waning, increasing the likelihood of a break-down. The charts are shown on the following page.
Equity Clock Stock Market Outlook
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Equity Clock Stock Market Outlook
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Put-Call Ratio Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.03. (BW: Friday chart is unavailable.)
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Equity Clock Stock Market Outlook
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Seasonal Charts
A. Sectors and Industries Entering Period of Seasonal Strength Today
None.
B. Stocks Entering Period of Seasonal Strength Today
Note: For additional charts, <Ctrl-Click> on the corporate name below each chart.
Valero Energy Corporation (NYSE:VLO) Seasonal Chart
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Equity Clock Stock Market Outlook
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C. Seasonal Charts of Companies Reporting Earnings Today
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Equity Clock Stock Market Outlook
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Equity Clock Stock Market Outlook
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Equity Clock Stock Market Outlook
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S&P 500 Index
Equity Clock Stock Market Outlook
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S&P/TSX Composite Index
Equity Clock Stock Market Outlook
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Horizons Seasonal Rotation ETF (TSX: HAC)
● Closing Market Value: $14.81 (down 0.67%) ● Closing NAV/Unit: $14.78 (down 1.10%)
Performance*
2015 Year-to-Date
Since Inception (Nov. 19, 2009)
HAC.TO -2.31% 47.8%
* performance calculated on Closing NAV/Unit as provided by custodian
Click Here to learn more about the proprietary, seasonal rotation investment strategy developed by research analysts Don Vialoux, Brooke Thackray, and Jon Vialoux.
Special Free Services Available through www.equityclock.com Equityclock.com is offering free access to a data base showing seasonal studies on individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices. Notice that most of the seasonality charts have been updated recently.
To login, simply go to http://www.equityclock.com/charts/
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BW: Information on Equity Clock is provided on the ensuing page.
Equity Clock Stock Market Outlook
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Equity Clock is a division of the Tech Talk Financial Network, a market analysis
company that provides technical, fundamental, and seasonality analysis on a daily
basis via TimingTheMarkets.com and EquityClock.com.
Equity Clock’s mission is to identify periods of reoccurring strength among
individual equities in the market using methodologies presented by some of the top
analysts in the industry, including that of Don Vialoux, author of
TimingTheMarkets.com.
Feel free to use any of the content or seasonality studies (charts, timelines, or
otherwise) presented as long as a link-back to this site at EquityClock.com is
provided.
For further information on indicators used in reports presented on this site, please
visit our reference page.
Equity Clock Website: www.equityclock.com
Horizons AlphaPro Seasonal Rotation ETF (HAC)
Interested in the methodologies and strategies presented by Tech Talk? The
Horizons AlphaPro Seasonal Rotation ETF (trading on the Toronto Stock Exchange
under symbol HAC) uses a proprietary, seasonal rotation investment strategy
developed by research analysts Don Vialoux and Brooke Thackray. The strategy’s
core position consists of broad markets at seasonally favourable times of the year
and money market securities at seasonally unfavourable times of the year. The
strategy allocates from the core portfolio to various sectors when those sectors
offer favourable opportunities. Rotating a portfolio in anticipation of these
opportunities is designed to deliver returns that are superior to a static investment
in broad markets. As seasonal periods are never the same, this investment strategy
is supported by additional fundamental and technical analysis.
For more information, Click Here.
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