The relief rally is on and the market is back as we start another week. Last week's selloff was somewhat of an anomaly, with big hedge funds selling stock en masse on Friday to cover their short position losses (from GameStop, AMC and others). Most indexes lost 3% last week on the volatility and at times it felt like a "hide under the mattress" kind of selloff. However, it had all the signs of a short-term drop and we're seeing a nice recovery today from our tried and true market leaders. Currently, Amazon, Google, Microsoft and Paypal are all up around 3% on the day. The fact that market leaders are taking back control of the market is both reassuring to investors and the rally points to strong earnings reports coming out tomorrow. The week is starting off on the right foot. But let's be realistic with the fact that markets do indeed go down on occasion and when markets go down, they usually drop hard and fast. When this happens, we don't want to lose our minds and be part of the panic selling. We buy and sell based on clear signals and the rest is just noise and there was lots of noise last week. In stock news, #TSLA bagged another upgrade this morning as Piper Sandler thinks it'll go to $1200. U.S. economic data was good as Dec construction spending rose stronger than expected and we had some strong manufacturing data come out of the Eurozone. Covid infections fell to a 2-month low so the positive economic signs are again starting to win the battle between shutdowns and re-opening. If we can get some momentum with falling cases, states will take further steps to reopen and then things will really start to take off. Volatility is coming down 8% this morning but markets are still very much watching the GameStop vs. hedge fund saga so we're not out of the woods yet. We'll probably see some high highs and low lows this week and into February. New Trade Alerts on their way in #IndexPRO, #StockPRO, #Mashups and #OptionsPRO
