Home 2021 Commentary: Paul Ebeling on Wall Street, the Santa Claus Rally to Extend

Commentary: Paul Ebeling on Wall Street, the Santa Claus Rally to Extend

by Paul Ebeling

#PaulEbeling #WallStreet #SantaClaus #Rally


The Bulls will drive the Santa Claus Rally in to the New Year” — Paul Ebeling

Last Week’s Action

Again the US economic data came in strong, the benchmark indexes finished on the highs.

The small-cap stocks led Wednesday, cloud software, some chips and some online retailers are setting up for moves North in the New Year.

Santa Claus has been generous during this rally week, as the small caps “lit up”, but the gains were slim for the large-caps.

The Russell 2000, S&P 400 and PHLX Semiconductor Sector (SOX) posted nice gainers to end the year’s action.

Now looking for the SOX to mark a breakout after the consolidation finishes.

Technical Analysis:

S&P 500, NAS Comp, DJIA:  The large-cap indices gapped higher last Monday in a breakout move from their 3-wk ranges. Paused Tuesday, then produce gainers Wednesday.

Year 2020, a terrific yr for US stocks is in the Scrapbook as the Bulls charge in to Y 2021.

The economy is Strong, and The Trump Fed will continue to do what is necessary to keep it Strong.

Analyst and investors see several parts of this market, including financials, leisure & hospitality stocks and energy with strong rally potential into Y 2021.

Investors see a continuing rally and are optimistic of a rebound in corporate earnings. Earnings will be used as a confirmation of current pricing.

S&P 500 company earnings are forecast to increase about 23% in Y 2021 compared with Y 2020.

Last year’s laggards are expected to join in Y 2021 in a broader rally, with a strong showing by value stocks, shares of small caps and non-US listed stocks.

And growth companies with dominant and emerging business models that can continue to meet or exceed shareholder expectations will continue to participate.

Have a healthy week, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.