StockTrader New Year’s Eve Edition!
Despite a hiccup on the last day of the year, indexes finished off a fantastic year in fine fashion with the S&P 500 surging 19.6% and the NASDAQ 28.4%!! Keep in mind that is off a strong rally in November/December 2016 post election day. Volume was extremely light as is usual for the week between Christmas and New Years Eve. More crazy records being broke – it was the DJIA 9th positive month in a row – the first time that has happened since 1959. The NASDAQ rose for the 6th straight year – which last happened in 1975 to 1980.
“There’s not much happening, but the quiet action tells a really important story: it tells you the bulls remain in control, that sellers are few and far between, and that we’re waiting for the next big catalyst, which will probably be earnings,” said Adam Sarhan, chief executive of 50 Park Investments.
“Otherwise, we’re seeing the market digest a very strong 2017 rally. It is perfectly normal and healthy to see the market pause after a huge rally, and the absence of selling in and of itself is very healthy,” he said.
Selling late in the day Friday came in the last half-hour of trading, a fall that roughly corresponded with the publication of a Reuters report that Russian tankers had supplied fuel to North Korea in recent months.
Bitcoin fell nearly 10% Thursday after South Korea announced tougher measures to crack down on cryptocurrency trading. That said, 10% is basically a daily move for this type of stuff!
Here are the best performers in the S&P 500 for 2017. Align Technology is the maker of Invisalign dental braces. Note the 2 home builders and chip makers.
Nothing market moving economically.
Here is the 5 day weekly “intraday” chart of the S&P 500 …via Jill Mislinski.
Interesting infographic on companies making the most profit PER employee globally. (click to enlarge the graphic)
And then which companies make the most money PER second – you will know #1.
The week ahead…
From tax reform late in 2017 to a $1 trillion infrastructure spending bill in 2018. You’d expect these sort of things when the economy is down not up.
First week of the month, we have our ISM #s and the employment data but right now the market is a non stop freight train so not sure what effect any economic report will have.
At some point in 2018 we will have a drawdown of more than 3% in markets, and some real volatility. Hopefully!
Short term: The S&P 500 and NASDAQ were nowhere near even their 20 day moving average to end the prior week so it was a good week to consolidate some gains.
The Russell 2000 – not quite as off the charge rampant as the senior indexes but still a week of consolidation.
The NYSE McClellan Oscillator continues to not be great but certainly not any extreme red readings either.
Long term: Unicorns and rainbows continue.
Charts of interest / Big Movers:
More nonsense with the “block chain” stocks – any company now who puts out a press release with those words is getting bid up – we talked about a Long Island Ice Tea company last week doing it, and this week it was Parateum (TEUM) which rallied a cool 120% Tuesday after the provider of telecom software and systems said it has “completed development enabling it to add support of Blockchain technology to its billing and settlement services.”
Just so you know Stocktrader.com is working on block chain technology. Don’t ask questions – just trust us, we promise. Boom – we are now worth 100x what we were worth yesterday.
Massive move up in Energous Tech (WATT) after the FCC okay’d it’s wire free charging technology.
The system approved by regulators is called WattUp and uses radio frequencies to send power to devices that are within three feet of a transmitter. The company also has technology that can be used up to 15 feet away, but that hasn’t been cleared by regulators yet.
Oil’s chart is looking pretty strong here to end the year.
Have a great week and we’ll see you back here Sunday!