Hello! Here’s what’s happening in the market today…
News:
The omicron variant is driving record levels of case numbers and now hospitalizations. But the market continued to rally. This tells me it has future expectations.
The market is always forward-looking. The market is asking, “What’s going to happen next?”
From everything I can see right now, the market is pricing in an end to the pandemic. We are going to learn to live with the virus after the variant rips through the population.
A change in this narrative could change the direction of the market.
Other headlines of note:
- Jim Cramer and JP Morgan’s Jamie Dimon have come out as extremely bullish in the current market.
- The Fed vowed to hike rates more if needed to fight inflation that lasts longer than exected.
Technicals:
The Nasdaq led yesterday’s rally gaining a respectable 1.4%
The VIX has moved lower for three days in a row. (Bullish)
The put-to-call ratio is near overbought. (Neutral)
RSI readings are neutral.
Bitcoin is moving up. Crypto’s $2 trillion market cap might be the new floor. I’m watching these levels closely.
Timing:
January is historically the best month for the Nasdaq. I’m still long TQQQ riding this wave. My profit target is $160-170+.
Futures are up at writing.
Today I’m generally bullish and risk on.
Watchlist:
IRTC has support at $130
BPT has resistance at $6.50
LQDA has support at $6.50
ASRT has support at $2.80
VORB has support at $10
F has support at $22, resistance at $25