December 23, 2021
We have another day with a lot of green on the screens: stocks, commodities … everything UP.
Remember, we looked at this chart on Monday …
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The S&P 500 was trading into this big trendline (circled). The Nasdaq was trading into a similar trendline (originating from the Fed's massive March 2020 response).
As we discussed, with this big technical support in play, and adding the catalyst of an optimal outcome to the "Build Back Better" negotiations (i.e. a "no deal"), this set up for what looked like a big bounce. We've had it, just in a couple of days.
I suspect we will see new highs, and plenty of fuel for stocks into the New Year, until we hit the date of the Fed's first rate hike (which could come anywhere from March to June). Then, if history is our guide, we should expect a shift to a market that rewards good stock picking (value, over growth and momentum).
As of tomorrow afternoon, I'll be taking the remainder of the year off to spend time with my family.
So this will be my last Pro Perspectives note for the year. For my Billionaire's Portfolio members, please keep an eye out for a note from me tomorrow morning. We will be making a new addition to the portfolio.
If you are not a member, I'd like to invite you to join us. You can get involved by clicking here.
Thank you for being a loyal reader of my daily Pro Perspectives notes. I want to extend my best wishes for a Merry Christmas and a Happy and Healthy New Year!
Best,
Bryan
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