Sunday, December 07, 2014

Week Ahead Magazine: A Seasonally Favorable Period For Equities

Washington, D.C. will likely do its part in grabbing headlines this week due to a potential government shutdown starting December 12th. Congress has until December 11th to approve a government funding bill before recessing on the 12th. Investors should keep in mind any market gyrations around these shutdown periods is more emotional than fundamental as we noted in a post in October of 2013, Government Shutdown: Time To Buy Or Sell Stocks?

With this thought out of the way, as we look to the week ahead, a number of article links in this week's magazine highlight the seasonally strong period for the market at this time of year. Some of the articles look at this part of the calendar as the so-called "Santa Claus Rally", while other articles incorporate the strong 6th year of the Presidential Cycle. In any event, from a technical perspective this part of the calendar tends to favorable for equities. The decline in oil prices continues to dominate a few article links as well. The decline in oil prices is anticipated to put pressure on some of the marginal energy producers; thus, making them ripe for a takeover by the larger and better capital oil firms.

Lastly, the economic report calendar is fairly full with the following reports likely to have the most impact on the market. The most important report this week will be the retail sales report on Thursday.
  • JOLTS and Wholesale Trade (T)
  • EIA Petroleum Status Report (W)
  • Jobless Claims, Retail Sales, Business Inventories and EIA Natural Gas report (Th)
  • Producer Price Index and Consumer Sentiment (F)
Following is the link to this week's magazine.

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