1/5/22 Santa Delivered … A Brand New Car

Hello! Here’s what’s happening in the market today…

News:

The “Santa Rally” ended yesterday, the S&P 500 gained 1.4%, the average return in 1.3%.

Now all eyes are on the auto industry…

Photo by sergio souza from Pexels

Toyota Motor Corporation (TM) has overtaken General Motors Company (GM) as the best-selling vehicle manufacture in the U.S. according to Automotive News, a trade publication. Both companies shares climbed about 7% on the solid delivery numbers.

But the real winner this morning is Ford Motor Company (F). Its shares climbed nearly 12% after increasing electric F-150 output. Ford stock has outperformed Tesla, Inc. (TSLA) over the past year.

The take-home? People are buying cars and more are buying electric than ever before.

I’m watching two stocks with huge potential in the EV industry. I’ve already opened a position in one. See my notes below.

Technicals:

Some divergence yesterday as the DOW posted a new record and the NASDAQ fell 1.3%. Bonds fell too which typically gives stocks an advantage. I think the dip in the NASDAQ gets bought.

Bitcoin still refuses to break down. I’m watching support at $45,000.

The VIX, RSI, and the put-to-call ratio, are in a neutral stance. Broadly, the path of least resistance remains up.

Timing:

I’m still eyeing the “January Effect” which is likely to last until the end of next week at least. I’m still holding ^TNA on this front. My next profit target is $93, I’ll exit this position by the end of the month regardless.

Futures are mixed near flat.

Today I’m bullish and risk on.

Watchlist:

*Low Float
^Open Position

*CELZ has resistance at $4
*SINO has support at $5
*^RELI has support at $8 and $9. I bought at the open near $7 yesterday.
ASRT has support at $2.40
DCPH as resistance at $11
LQDA is on watch

EV stocks:
F has support at $22
*^SLDP appears to be putting in a double bottom. This EV battery play has massive potential, especially when compared to QS. Watch this post-merger SPAC for a big move up. Check on this due diligent package and decide for yourself. Support at $8.50
*WEJO is another post-merger SPAC EV play. Support at $8, resistance at $10.

XXII closed below $3 and I exited the position.

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