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