The “Santa Rally” is a seven-day period that started yesterday, in which the S&P 500’s average return is 1.3%. Yesterday the index surged 1.4% and closed at a new record high.
Almost every indicator I’m seeing this morning is bullish.
- Lead news story: CDC reduces quarantine length recommendations
- All the major indexes closed at the highs of the day.
- The put-to-call ratio and RSI are in a neutral stance.
- The VIX is low.
- 40% of stocks closed above their 50-day moving average, the most since Thanksgiving.
- Futures are up this morning.
The Russell 2000 gains were the lowest yesterday, at just 0.9%, typical of a bull market. The small caps often play catch-up after the big caps surge. I remain bullish on the small caps, and I’m still holding TNA. Profit targets are $88 and $93.
The only bear I could find this morning is bitcoin. It’s below $49,000 at writing. But still above its 200-day moving average. I’m a long-term bull but not completely convinced it will perform well in the short term.
Overall though, I’m bullish, risk on, and excited for what the next few weeks can deliver.
*BFRI has resistance at $12 & $12
*TRT has support at $12
*MBOT is on watch
*APT has support at $7
*SINO has support at $4.20
GRTX has support at $5
ASRT has support at $2
LLNW has support at $3.60 and resistance at $3.80
^XXII has resistance at $3.40
*QTT, BORR, NAKD are reverse splits I’m keeping an eye on