- There are 2 more trading days of 2021 and the path of least resistance is to the upside given the strong seasonality and low volume. Do not try to anticipate a move lower based on inflation/Omicron fears. Wait for the first sessions of January to measure the overall health of the recent bull sequence
- $DIS has been battered and bruised in 2021 but is showing some good relative strength since it formed a rounded bottom earlier this month. We are long the stock and a few call options for the end of January.
- Biotechs continue to be one of the worst sectors of 2021 as they got rejected at key resistance level this week. More negative data from 2 companies within this sector brought this ETF back to the yearly lows. See if it can participate in a January effect play
- Small caps had a great bounce off the channel lows but are struggling for direction in the past few sessions. A break below 220 would be a big negative for overall market sentiment
- $AAPL is struggling to reach its $3 trillion market cap as it got rejected at 180 yesterday. We are long the stock and will look to add if it can get above 182.13, its all time high.
- $AMZN continues to be the weakest link of the FAANG type stocks. It is once again approaching its 200EMA around 3350. This may become a January effect stock too given its poor performance in the past 12 months