December 21, 2021, 11:31 am EST
Holidays are going to come for the next 1-2 weeks. Usually, this is the time for happiness, shopping, vacation, and gathering. This is what happens at the opening bells that DJIA is up about +400 points as of now or about +1% gains across all indexes. After strong selling in the last three sessions, market participants cannot wait to get into technology and travel-related stocks.
- Technology: CTXS +12%, MU +9%
- Travel-relatedl: CCL, EXPE +8%, LVS, HST, UAL +7%, WYNN +6%
- Shopping: NKE +6%
Some people think that there is a Santa rally during this period of time. Perhaps, it is true from the statistical point of view where the chances are higher than 50% to make quick profits by trading for this 1-2 weeks.
However, it takes patience, practice, and learning to be profitable for a long period of time. Thus, we prefer to look at the big picture rather than these short-term trading opportunities.
We think that being conservative in trading is more reasonable in the higher rates, Omicron, and hyperinflation environment. But, there could be opportunities around. For example, ee notice that some hotels emerge up from a base that could be worthy of attention like MAR, HLT, H.
Overall, today’s action could be a rebound after the oversold conditions. True rally depends on the resolution of COVID-19 which has still many unknown factors. Thus, be cautious, safe, and joyful info your holidays.