December 22, 2021, 2:20 pm EST
The time arrives to say “Happy Holidays!”
The stock market is up for the second day. Thus, three down days and two up days recovered much ground for the holidays. But, we are not fully optimistic about its development because of the low volume on up days. Furthermore, the breadth readings are still weak.
The new high of Alcoa (AA) +5% paved a solid ground for the material sector on the coming infrastructure projects for 2022. Another strength comes from the cruises, hotels, airlines, and travel-related stocks that we mentioned yesterday. It is likely that some market participants speculated that Omicron is helpful to signal the end of COVID-19. Although it spreads fast, it is not as fatal as Delta or the previous virus with the death rates. Therefore, there are two camps to debate whether the direction of COVID-19 is getting worse or better. We would find out.
Overall, it would make logical sense to be cautious in this junction.
Be safe, peaceful, and joyful.