Market Notes:
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.
Watchlist:
*Low Float
^Open position
*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