Tuesday, December 22, 2020

☃️ Santa Claus Rally Season is Here

Good morning. The week of Christmas through the end of the year is dubbed the "Santa Claus Rally."
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
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Good morning. The week of Christmas through the end of the year is dubbed the "Santa Claus Rally." It's a time of good cheer, lightly rising markets, and even lighter volume as traders use up the last of their vacation days.

With another round of stimulus now coming out, as well as interest rates stuck at zero, it's a rally likely to play out in the shortened trading of the holiday season. Yes, even a big selloff, like the one the market tried to pull first thing Monday morning, is likely one last humbug of 2020. Trade accordingly!


Now here's the rest of the news:

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Inside, you'll learn the specific strategies the DTI team uses when the market turns bearish.

As a bonus: You'll also get to hear a critical market briefing from Tom Busby himself where he discusses 5 Phases of a Market Meltdown and how to capitalize on each phase.

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MARKETS
DOW 30,215.99 +0.12%
S&P 3,694.94 -0.39%
NASDAQ 12,742.52 -0.10%
*As of market close
Stocks traded mixed Monday, but closed near the highs of the day.
Oil dropped 2.7 percent, closing at $47.49 per barrel.
Gold dipped 0.4 percent, ending at $1,880 per ounce.
Cryptocurrencies generally declined, with Bitcoin last trading at $22,845.

Today's TOP TIPS
This Underperformer in the Streaming Wars Looks Attractive
After Netflix (NFLX) was allowed to dominate the streaming world for nearly a decade, a number of media companies have belatedly created their own services to play on this growing space.

The streaming wars have created a multitude of players. Unlike Netflix, most have operations in other areas outside streaming as well, which can create new opportunities in the post-Covid era. That's particularly true for companies that have highly-profitable operations that can compliment their streaming activities.

» FULL STORY

Insider Trading Report: Viatris (VTRS)
James Kilts, a director at Viatris (VTRS), recently added 27,736 shares. The buy increased his holdings by nearly 75 percent, and came to a total cost of just under $500,000.

This is the second insider buy of the year following another purchase from a director in August. There's also been one sale this year. Insiders have been sellers at higher prices back in 2018 and 2019.

» FULL STORY

Unusual Options Activity: Snap Inc. (SNAP)
Shares of social media company Snap Inc. (SNAP) have had a strong rally year-to-date. At least one trader sees a pullback in shares by year-end. That's based on the December 31st $48 puts. With shares trading near $53, they'd need to decline nearly 10 percent for this option to move in-the-money.

The buyer paid about $0.45 for the puts. Over 19,970 contracts traded, a 130-fold rise from the prior open interest of 154.

» FULL STORY

IN OTHER NEWS
The bond market roared in 2020, fueled in part by a rise in social bonds.
Tesla Motors becomes the largest company by market cap to enter the S&P 500.
The next stimulus package looks to include $15 billion to airlines and their 30,000 furloughed workers.
A $600 stimulus check is also likely as part of the package.
Thousands of restaurants remain on the brink as options for assistance dwindle.
Amazon's Halo fitness tracker raises privacy concerns, notes Senator Amy Klobuchar.
Dating app Bumble confidentially files for an IPO.
JP Morgan announces a buyback after being cleared to do so by the Federal Reserve.
In earnings, Nike shares soar on rising online sales.
BlackBerry drops on a sales decline, but software and services are growing.

S&P 500 MOVERS
TOP
AIV 7.08%
GS 6.133%
MS 5.687%
NKE 4.91%
AIRC 4.134%
BOTTOM
TSLA 6.495%
OXY 5.67%
LBTYA 4.94%
LBTYK 4.932%
SLG 4.044%

Quote of the Day
Stock Trader's Almanac explored why end-of-year trading has a directional tendency. The Santa Claus indicator is pretty simple. It looks at market performance over a seven day trading period – the last five trading days of the current trading year and the first two trading days of the New Year. The stats are compelling. The stock market has risen 1.3% on average during the 7 trading days in question since both 1950 and 1969. Over the 7 trading days in question, stock prices have historically risen 76% of the time, which is far more than the average performance over a 7-day period.
- Lance Roberts of RealInvestmentAdvice.com on the size and strength of the Santa Claus rally on average.

Sponsored Content
2 Strategies for the Coming Bear Market
Tom Busby and his team at DTI just put together a brand new eBook revealing: The 2 Strategies for the Coming Bear Market

Inside, you'll learn the specific strategies the DTI team uses when the market turns bearish.

As a bonus: You'll also get to hear a critical market briefing from Tom Busby himself where he discusses 5 Phases of a Market Meltdown and how to capitalize on each phase.

Click HERE and Get Your Copy Now.

(By clicking the link above you will automatically opt-in to receive emails from DTI Trader.)



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