Market Notes:
Monday’s open was brutal. I was operating on no sleep and decided it best to sit the day out. I didn’t sell TNA. A close below $75 today will get me out.
Today is a different story. Futures are jumping and markets are rebounding.
Yesterday the “Build Back Better” bill, a huge portion of the Biden administration’s agenda, appeared to die.
That’s not insignificant either. The market likes it when the federal government is pumping cash into the economy. But this time it may help stay off some inflation. So the market is now accepting this as a positive after a day of sharp declines.
In other news, the CDC reported that 73% of COVID-19 cases in the U.S. are from the Omicron variant. It’s been about three weeks since the first case of Omicron was reported in the U.S. This report certainly makes Omicron sound more contagious. But so far hospitals are not being overrun like we saw with earlier variants.
If the trend holds true this is bullish news and could point to the end of COVID.
I’m still rooting for the “January effect” to take over the markets. This morning small caps are showing a lot of life so I’m optimistic, and exetremely bullish.
The January effect usually starts in the middle of December. It’s a 30 to 45 day period in which small caps far outperform the indexes.
Watchlist:
*BFRI has support at $9
*STRN has resistance at $6.50
*RELI is on watch
SEAC has support at $1.80
ASRT has support at $2
GNFT is on watch
APTS is on watch
LLNW has support at $3
ROIV is on watch