Call it a bubble, call it euphoria, but please don’t fight this market. Investors wake up almost every morning to a gap up in the indices and today won’t be any different. Futures markets are trading moderately higher on low volume as international markets were bid overnight, led by China.
Volumes have been noticeably lower this week, especially when compared to the high volumes we saw during the GameStop short squeeze a few weeks ago. Traders seem content to ride this slow grind higher, aggressively buying any dip.
The news flow will be light, with a lot of focus on CPI. Inflation will be very important in the year to come and something the Fed will be watching closely. Speaking of the Fed, Powell is due to talk at 1pm CST.
S&P Futures Trading Levels
The S&P futures currently sits at 3920, about 4 handles off the overnight highs.
Support levels for the day will be 3917 and 3906.
Upside resistance is 3925 and 3942.
The current S&P trading environment is breaking out higher. Nobody wants to be short this market so we there is simply no offer to fight a strong bid.
Three Stocks to Watch
TWTR- Earnings out last night, with a beat on the top and bottom line. The company said in a tweet that they “Saw a dip in US advertiser spend during a short period bracketing the US presidential election on November 3, followed by a strong resumption in demand that continued through the holidays”.
Seeing a lot of upgrades out premarket, with the highest one being Goldman, with a $78 price target. The stock is trading up 4% before the bell.
ENPH- Another great earnings report from Enphase Energy. The company surprised to the upside on EPS by 27%. The stock is trading up over 7% in the premarket, but the bulls will likely try to take out those all-time highs at $222.43.
MSTR– The move in Bitcoin has propelled MicroStrategy above $1000 a share, from $150 just a few months ago. The move to put the company’s cash into Bitcoin has proved to be a very smart decision and has been recently followed up by Tesla’s entry into the crypto world this week.
The stock is trading lower by 2% premarket, but will continue to push to new heights if Bitcoin breaks $50,000.
5 Stocks Set to Double
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