MaR Dec 31 2020

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Market Report for Dec 31 2020

The trading obstacles and barriers you had to contend with this year has made you stronger for next year.

Market Trend:

Market YTD:
Nasdaq Composite +43.4% YTD
Russell 2000 +18.7% YTD
S&P 500 +15.5% YTD
Dow Jones Industrial Average +6.6% YTD

Market Volume:
NYSE Vol: 691 mln (B)
Nasdaq Vol: 5.2 bln (A)

New Positions:
ABNB @153.38

Growth Portfolio % of Return:
Stocks: +1796.34
FX & Comms: -5.25

PORT Dec 31 2020

Another fairly tight range session on Wednesday leading us into the last trading day of the year.

All three main indices closed slightly positive with the Dow Jones Industrial Average closing at record levels a couple of days after the last record close.

It has been a difficult year with COVID crashing the markets at a speedy rate of knots then forming a K shape recovery and moving up with the least number of investors on board. From that point, we had plenty of tree shaking to contend with and throughout the year we have had to deal with COVID news to scare the markets and BREXIT news to bore the market.

As you know, the majority of volume and volatility appears at the point when the markets change direction and from there volume and volatility levels subside which is what we have seen happening from March onwards this year. So while the trends were intact, there was no reason to sell and as you know, we have done very little in the way of selling but a lot in the way of buying.

Where to now?
Nothing has changed and the markets still look bullish but we will consider trimming positions if we feel the need. It comes down to a breach of support levels and change of trends as well as percent of gains.

U.K. approved the COVID vaccine from AZN and Oxford and the fight against COVID is heating up around the world. This means certain areas of the markets such as travel and tourism may well start to pick up during 2021.

From myself and Anne, we wish you all a happy new year and prosperous 2021.

Let’s go trade!