“The Bulls are still running, despite the political scenario” — Paul Ebeling
Last Week’s Action
The Small-cap Bulls are running and driving those stocks due North on the notion of a Biden admin $1.9-T aid/relief/stimulus package and Johnson & Johnson’s (NYSE:JNJ) new vaccine.
Our technical indicators, sentiment and fundamental internals are beginning to look and feel extreme.
The leaders action is solid, but the indicators are flashing Yellow now. Airlines are setting up in advance of the Treasury’s bailout, I expect they will join other transportation stocks in good moves.
Friday was options expiry and earnings earnings kick off, for most of the market the action was positive.
Ahead of the expiry, Thursday, it was the Russell 2000’s turn to lead the market again. The small-cap stocks are the ‘hot’ tickets in here. And they have been since late October, driving hard through November, and most of December, then consolidated into the New Year. Then, got up to run again.
Ah, the January Effect, some say it is passé. On the right side of the trade it is a major happening.
Technically all of the US benchmark stock indexes look Bullish to Very Bullish in here, though there are Yellow lights flashing in the distance, so be prepared because Mr. Biden’s admin is some what anti-business, and Wall Street is concerned.
What to expect this week
Prepare your portfolios for a downturn, meaning add gold at these support prices, take some profits, and keep your powder dry.
Remember, pay attention, things can reverse on a dime, so, since it is your money, it is your responsibility.
Have a healthy week, Keep the Faith, the Trump Era is not over yet!