Watchlist: 12/22 Waiting For Santa

Market Notes:

“If Santa Claus should fail to call,
Bears may come to Broad and Wall.”
-Stock Trader’s Almanac

Photo by Tima Miroshnichenko from Pexels

Depending on who you ask the Santa Rally is already happening or about to start. Jim Cramer said it typically begins yesterday 12/21.

Jeff Hirsch at the Stock Trader’s Almanac defines “the Santa Claus Rally as the last [five] trading days of the year and the 1st [two] of the New Year.”

The end of December is typically bullish. But when the Santa Rally fails watch out … things can get ugly, hence the quote I led with.

Everything I’m seeing right now indicates we are still on track for a strong rally into the end of the year.

Small caps are leading the way with the Russell 2000 gaining nearly 3% yesterday. I believe this trend is likely to continue and am holding TNA in anticipation.

This year even Bitcoin is looking to get in on the rally. After bottoming near $45,000 it appears to be turning. It recaptured its 200-day moving average yesterday. This morning it faces psychological resistance at $50,000. A break-out could mean new highs in the new year.

This morning futures are pointing towards a red open. With only two trading days until Christmas I expect every dip to be bought.

I’m bullish and risk on. I’ve listed my new positions below.

Watchlist:

*Low Float

BFRI has support at $10
PTPI has resistance at $5
SUNW bought for swing, free lunch setup
NAKD on watch, recent reverse split
SEAC has support at $1.80, I bought this one too. A close below $1.80 will get me out, target $2-4+
ASRT has support at $2.85
APTS has resistance at $17
LLNW has support at $3.60
PENN bought this on the free lunch also. Starter position, looking to add into any dips
Still holding LTRY and VRAR for longer-term plays.
QTT and BORR are other reverse splits I’m keeping tabs on

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