EB Daily Market Report - Thursday, December 31, 2020

Happy New Year!

This is just a very brief update. We'll be back to our regular schedule next week.

Volume remains very light across our major indices and most of the action this week has been to the upside. I have noticed, however, that many of our portfolio stocks are struggling this week. There definitely appears to be some profit taking among those stocks as the year comes to a close.

There isn't a whole lot worth mentioning, but I will provide you with one industry group chart where we're definitely seeing some strengthening as we wrap up 2020:

Consumer finance ($DJUSSF) has broken out on an absolute basis and its relative strength ($DJUSSF:$SPX) is currently trying to clear its relative 50 week SMA (from our Industry Group Relative Strength ChartList). That combination could serve the group well as we head into 2021.

The S&P 500 is currently trading at 3749, not too far from my early 2020 prediction of 4040, before the pandemic crushed the market. While I expect we'll see periods of volatility in Q1 2021, I fully expect we're going to see higher prices next year. I remain very optimistic.

I want to wish everyone a very Happy New Year from all of us at EarningsBeats.com! Thank you so much for your support in 2020, a year of crisis and so much uncertainty. Please be safe tonight and throughout 2021. We hope to enjoy many future successes together!

Tom