It was a weak start to the week, with the SPX printing 3636, but recovering to 3702, and settling -14pts (0.4%) to 3694. Meanwhile, WTIC cooled by -$1.27 (2.6%) to $47.97.
sp’weekly1b
WTIC daily
Summary
sp: considering its Christmas/holiday week, considerable chop has to be expected. On balance, I don’t expect new hist’ highs this week, as the market looks vulnerable to another wave lower to the mid/low 3600s. Broadly, its just s/t consolidation/chop, before another push toward Tom Lee’s 3800s.
wtic: oil saw an early low of $46.25, pressured by the main market, but also a bouncing dollar. The door to psy’50 remains open, with secondary of the $52s, the latter appearing due within January.
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Looking ahead
Tuesday will see GDP Q3 (print 3), consumer con’, existing home sales
Earnings: KMX, CTAS, NEOG
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PF chart of the day
The computer has a bullish target of the $161s.
Apple, monthly
Apple is set for a second consecutive net monthly gain. Note the key 10MA in the $101s. Upper bollinger is offering the $134s, and that should be in the $140s in January, as new hist’ highs appear probable.
News appeared this afternoon that Apple is interested in making cars.
Maybe it should just make an offer for Tesla, not that I’d expect Elon to accept. I think he believes he is going to become the world’s first trillionnaire.
One key issue is that the number of cars necessary to service the US population will likely be far below what it used to be. I’d accept other countries such as China and India are still offering much higher demand for decades to come.
In any case… AAPL and TSLA, both mid/long term super strong, both set to break new hist’ highs into early 2021.
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Final note…
The latest from Denniger merits a read…
http://market-ticker.org/akcs-www?post=240992
I will highlight this key point…
“We also have no data on whether the new strains detected in the UK and elsewhere are protected against or may, God forbid, raise an ADE concern. ”
Indeed, ADE is a massive issue… and overlooked by most.
Data is everything… and there is little of it, not least in terms of the long term positive and negatives.
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Ohh, and I noticed the following on Twitter, which as an onlooker from the eastern side of Atlantic, sure is interesting to reflect upon.
There sure seem to be a lot more red boxes… than blue.
Goodnight from London
Yours… currently under tier’4 lockdown/house-arrest, semi-martial law.