1/5/2021 Market Analysis

2021, Jan 05    

README

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General Market commentary

SPX

SPX found its support at 20 day moving average and rebounded today. Now the focus is on U.S. Senate runoffs. If Democratic party wins, the market can suffer a deeper pullback due to tax concerns. However, a Democratic sweep across the board also means a bigger stimulus package. Uncertainty is elevated right now, so it’s better for short term traders to stay on the side and let the dust settle first.

Quantative market model signal

  1. Midterm trend: moderately bearish

  2. Midterm risk: high (we have been alerted this risk for weeks!!!)

Featured charts

Senate runoffs

NO chart is more important than this one as of now. No matter what happens, you as an investor need to have a plan. If Democratic party wins, it’s good to consider renewable energy, infrastructure and cannabis plays. If Republican party wins, it’s good to consider mega-cap stocks.