by Robert Holman | The Defensive Advisor | December 22, 2020
MARKET NEUTRAL … Rating of 5 (0 - 4 is bearish, 5 is neutral, 6 - 10 is bullish.
I’ve changing my rating to Neutral out of caution, because of Monday’s price action, which ended up being OK by day’s end. Over the weekend, England reported a new Covid strain, which sent fear through the markets, and futures prices were down 700 points at one point. But with Monday morning news coverage, we began to hear from doctors that the two vaccines will still work on this mutation, and there is no danger. Prices closed mixed, with the DJIA up and the S&P 500 down. Prices are down today for both indexes. Being cautious here.
A $900 billion bi-partisan stimulus package finally passed. It will benefit the unemployed and small businesses. It will help the market stay poised for further gains, but it won’t really push prices up. I’m staying watchful to protect our profits.
As mentioned recently, there is also evidence of an existing medicine that may repurposed to “prevent” contracting the virus – it is called IVERMECTIN, and it became a Nobel Prize winning drug in 2015 for its original purpose.
I gave everyone a little Christmas gift, I hope, in voicing my opinion that Salesforce (CRM) could be a good investment over the next several years, due in part to their Slack acquisition (that Wall Street was not too excited about.) I would expect CRM to move sideway and sideways/up for the next two quarters. If the street sees a good 2Q report, then the stock should resume its previous upward growth path. The CEO will have proven his acumen in guiding the business.
Big Tech has been out of favor for a while; I wonder if that will reverse soon – it usually does. Bitcoin is setting new highs at $23,370. I am NOT recommending a purchase, just providing possibly useful information.
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Opinions voiced in this post are for general information only and are not intended to provide specific advice or recommendations for any individual, without complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results.