MaR Dec 23 2020

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Market Report for Dec 23 2020

Limit your buying in dumb money December

During trends, most of the bargains occur in stocks before the momentum moves in December so buying and positioning in November or earlier is often the key to capitalizing on any Santa Claus rally or market momentum. It is often the institutional investor adding or dumb money last-minute shopping that makes up much of the day to day volume before Christmas. Remember, f you want to beat the market, don’t do what the dumb money do.

Market Trend:
Up

Market YTD:
Nasdaq Composite +42.7% YTD
Russell 2000 +19.2% YTD
S&P 500 +14.1% YTD
Dow Jones Industrial Average +5.2% YTD

Market Volume:
NYSE Vol: 909 mln (A)
Nasdaq Vol: 5.6 bln (A)

New Swing Positions:
None

Growth Portfolio % of Return:
Stocks: +2092.99
FX & Comms: -5.25

PORT Dec 23 2020

Comments:
The market ended Tuesday mixed. The S&P 500 (-0.2%) and Dow (-0.7%) finished in the red while the Nasdaq (+0.5%) and Russell 2000 (+1.0%) outperformed. As mentioned on the MaR webinars, mega tech does not seem to have finished its trend entirely.

A narrow range depicts the market move but volume levels are not low so this was either light institutional accumulation or individual investor involvement.

Whatever the market is doing, our positioning should have manly been complete back in November so now we can sit back and relax. Buying in mid-December is similar to buying your family Christmas presents from the local petrol/gas stati0n at 11pm on Christmas eve.

Let’s go trade!