Liver energy is available in 2021: Classic "buy the rumor and sell the news?"

Liver energy is available in 2021: Classic "buy the rumor and sell the news?" ...

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In 2021 CLASSIC "BUY THE RUMOR, SELL THE NEWS" (1215 EST/1715 GMT): "BUY THE RUMOR, please" (1215 a.m.)

Clean energy stocks were market darlings last year. However, the blue tide began in 2021 as a red wave.

Since 2014s biggest ever gain was a 203% increase, the WilderHill Clean Energy Index has a 30-fold drop this year. Meanwhile, the S&P 500 index has a 26-30% increase in year-to-year (YTD).

In spite of the fact that the clean-energy stocks have been hit by a blow on the wind since the election of Joe Biden on the three of Nov. 3 in 2020.

ECO went on to rip the tide from that date and ended 3 weeks before Biden took office. After he slipped into a May low, ECO failed to overtake the 38.2% Fibonacci retracement from its drop in June, and again in November.

Earlier this week, ECO nearly reached the end of a full round trip back to where it was on the day of Biden's election. The index fell to a low of 142.39 on Monday, putting it within 1% of its annual Nov. 3, 2020 high at 141.01. At its lowest on Monday, ECO lost roughly half its value from its October peak.

The index has been bounced, but still remains low in average velocity, usually 200 days.

Currently, the ECO relative strength, compared to this year's top performing S&P 500 group, the traditional energy sector, is very weak. With SPNY up around 46 %, the ECO/SPNY ratio is flirting with its lowest levels since July 2020.

And the opposite is happening. The bill of President Biden "Build Back Better", which was to buy a host of programs to combat climate change, met severe resistance.

It remains to be seen whether the ECO's drop off its Biden-election day or a better upward rise will result in a higher level of life.

(Terence Gabriel)



The omicron wave will soon go on a near-ride rally, Jefferies and the U.S. Bank of America said in separate reports Wednesday.

Many businesses, struggling to cope with the loss of a large-cap for the investors, worry rising case counts could negatively influence the economy. But signs such as the slow wave, fewer hospitalizations, are probably good for smaller companies, writes a strategist.

The report noted that smaller versus large-cap performance has had a higher correlation with new hospitalizations (which have recently fallen from the bottom) than the new case.

Attractive valuations in the benchmark Russell 2000, compared with large cap equities, should also boost returns in the coming quarter, noted Jefferies. The price to earnings ratio of the Russell 2000 has fallen to 25 from 32 at the end of January, noted Jefferies.

Small should be able to beat big by over 6% over the next twelve months, said Jefferies.

The average January increase for the small in January is 3.7%. Despite the downfall of the Q4, the smallest of the small gains 8.4% next year versus 7% in all periods, said a report.

Among Jefferies buy recommendations are Dave and Buster's Entertainment Inc., Urban Outfitters Inc. and National Vision Holdings Inc.

(David Randall)


Is it OK? (1035 oC/s/1535 thursday)

The S&P 500 sat less than 2% of its high on Nov. 22, when a long-running forecast put the stock a shaky pace, the Omicron variant spread and uncertainty surrounding the likelihood of the build-back-for-the-top plan passing in Washington.

As such, the tone has become more defensive in the past month of the year, with such sectors being highest performing in December, while if only with the better potential of consumers, a larger consumer choice will be realised.

In a recent note, the Bespoke Investment Group measured the performance between standard items and discretionary, and found that when staples outperformed discretionary by 10 or more percentage points each month, the S&P 500 struggled in the medium-terms, going back to 1990.

If compared with Tuesday's close, the staples outperformed discretionary stocks by about 9.5 percent points: "It was a great time to measure the performance of the sector with Wednesday's close.

With the aid of a second hand, Jason Goepfert, which shares traded with Sentiment Trader on Thursday, checked the situation recently with a rate of 90% higher than its 30-day moving averages. During the same period, more than 25% of the stock on Nasdaq managed to hold that level, with the widest spread since in 30 years.

Even in contrast with Bespoke's findings, Goepfert found comparing the two a good predictor of a market fall. Only one example led to a long, close decline since 1990.

(Chuck Mikolajczak)



Wall Street's main indexes are roughly flat Wednesday morning, as worries lingered about the Omicron variant of the coronavirus and what it might mean to the global economic recovery.

Currently, the S&P 500 is almost six miles from now on track for the second straight close to its current 50-day moving average (DMA) which's about four six-thirty per cent below the market.

The DJI is just shy of its close-term moving average, which is nearly 35,600. The Nasdaq 50-DMA is above 15.500.

Here is where markets are in early trade:

(Almae Gabriel)



The index has only recently dropped a modest share of its 4,712.02 December 10 record.

The five-day moving average of CBOE equity put/call ratio, which can be viewed as a contrarian measure of sentiment, is suddenly cooperating with bulls.

The P/C measure, which has risen to 58% and 58.2% on December 6 and December 16 now deflating to 51.8%. Of note, since the P/C measure dropped to 40% in mid-June 2020, it's now decreasing to 620.5%.

If the pattern continues then the measure showed that the market sentiment has become sufficiently bearish over the past few weeks of trading, and that the SPX may continue to prosper.

The traders will then look closely to see if the measure can oscillate back below 40% as the SPX rallies.

A PP-memory sunk in a large proportion of the lower 60 percent area but could signal the onset of panic. The measure peaked at 105% on March 17, 2020, after the S&P 500 collapsed more than 30-7%.

(Afraid Gabriel)

***** ********************.


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