**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:
Cal-Maine Foods Inc (NASDAQ:CALM) Seasonal Chart
The Markets
Stocks ended mixed on Wednesday as investors traded around the FOMC minutes from the latest meeting. Despite gyrations intraday, reaction to the report in the bond, equity, and currency markets was muted as investors were left digging for clues as to when the Fed will likely increase the cost of borrowing from its historic lows. The yield on the 10-year treasury note continues to hover around its year-to-date highs as the 50-day average shows signs of curling higher for the first time since 2013; on an intermediate scale, a higher-high and and higher-low have been recorded, indicating a positive trend. The bullish intermediate chart pattern provides upside potential to 2.7%. Longer-term, a higher-low may be suggesting the conclusion to the bull market for bonds that began in the 1980’s. Yields still have a long way to go to break trend, around 4.0% in the case of the 10-year note, but, the higher-low would indicate that the low charted in 2012 was potentially a bottom, putting a floor under the treasury rate. Seasonally, rates typically decline in the summer months as investors seek the safe-have characteristics that the asset class has historically presented.
Notable moves in the equity market on Wednesday were present in the transportation industry as airline stocks plunged. The NYSE Arca Airline Index closed lower by 4.59%, breaking horizontal support around $97.50. The break implies a calculated move lower towards $89, approximately 8% below present levels. The airline index had been range-bound since the year began, but, with the onset of the period of seasonal weakness for stocks in this space, the trend is implied to have changed from neutral to negative. Airline stocks remain in a period of seasonal weakness through to October. Transportation stocks, including airlines, are constituents of the industrial sector, which tend to drag upon broad market benchmarks during the summer months, along with other economically sensitive components.
Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.85.
Sectors and Industries entering their period of seasonal strength:
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
Horizons Seasonal Rotation ETF (TSX:HAC)
- Closing Market Value: $16.32 (up 0.43%)
- Closing NAV/Unit: $16.29 (up 0.31%)
Performance*
| 2015 Year-to-Date | Since Inception (Nov 19, 2009) | |
| HAC.TO | 7.67% | 62.9% |
* 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.
