12/19 Daily Market Note: Where are the Bears?
12/19 Premium Strategy Note - Bears Enter Hibernation Phase
Hi Folks -
As we enter the holiday season, we sincerely have much to be thankful for as the markets have put in an incredible year. Macro data from now until year end will be on the lighter side, so I will be using the coming weeks to conduct additional equity research in the background into areas of the market that I believe have upside potential. Unless there is anything that derails the year-end stability, my Daily Notes will be shorter in nature.
My edge tends to be in bottom-up company research combined with technical analysis so I will continue to find long-term and tactical (short-term) opportunities for members when they present themselves.
Last week we discussed a couple names on which have tracked the Russell 2000 Small Cap Index with a higher level of beta. Russell 2000 has been bid up, so these names have risen in tandem.
In early December, I’ve proactively shared my thinking that small-caps and mid-caps are likely beneficiaries during this multi-week move in the market’s advance.
Bearish sentiment has simply evaporated as we can see below as short-sellers have been essentially driven out of the market.
For now, I’m spending more time doing equity research as I update my models for fair value of companies as well as doing chart-based technical analysis to watch inflection points.
Share my work with investors/traders alike - have a good evening.
-Larry
Disclaimer: My investment community is not investment, financial, or trading advice, but for educational informational purposes only. I am happy to share my personal opinions which I provide as my personal journal. Trading of any kind of securities involves a lot of risk. No guarantee of any profit whatsoever is made. Investors may lose everything they have. Practice extreme caution. No profit is guaranteed whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this publication are NOT registered as securities broker-dealers or investment advisors either with the U.S. SEC, CFTC or with any other securities/regulatory authority. Make sure to consult with a registered investment advisor, broker-dealer, and/or financial advisor.