U.S. equity markets have a history of moving higher during the first two weeks in March. The period is the second highest two week period in the year, second only to the Santa Claus rally period. March is the fourth strongest month in the year for the S&P 500 Index and third strongest month in the year for the TSX Composite during the past 62 years. Best performing sectors in the month during the past 22 periods are Energy, Consumer Discretionary and Financials. Weakest performing sectors are Health Care and Consumer Staples. Strongest sub-sectors are Retail and Chemicals. Weakest sub-sectors are Gold and Biotech.

Selected seasonal trades continue to work (e.g. energy, oil services, gasoline, crude oil, base metals, grains, uranium, platinum, chemicals)

International events could influence equity markets. The Ukraine remains a focus. More economic data from China will be watched closely.

The Bottom Line

Stick with favoured seasonal trades for now.

Ed Note: Continue reading Don Vialoux’s Monday report with includes Economic News this Week plus analysis of 45 charts. Also examines”Seasonal” trades through a link to EquityClock.com‘s monday report.