Market sentiment was reset perfectly by Omicron & taper fears
Just so you, dear public reader, know, NFTRH was well prepared for the sentiment gymnastics associated with the coming of Omicron (in combo with Fed taper hysterics) and with the oh so not surprising relief from the Omicron dud. Perspective on the sentiment event in play has been provided routinely over the last few weeks.
Fed taper is still in play, especially with the market’s newfound party mentality (which just happens to be playing pretty well with the seasonal, which we also covered ahead of time in detail for the November > February period).
Here is a clip from last weekend’s summary.
Personally, I remain light on the inflation stuff (aside from one [edit, make that two] favored commodity sector[s]) with more focus on my 3 personal Amigos, the Semi sector along with two down and outs (Cannabis MSOs & gold stocks) that work as tax loss seasonal plays as well. Speaking of which, I’ve added some tax loss prospects from other sectors as well (from a group first ID’d ahead of time in an NFTRH+ update for anyone interested. Amazing how they loved them a year (+/-) ago and now have kicked (or better yet, knee-jerked) them to the curb in December, 2021.
I’ve been saying that the market is pleasing lately even as it was challenging on a daily basis. That is because it is in motion. The worst thing in my opinion is a robotic market, trending up without a hitch. Well, we’ve had a hitch thanks to Moronic Omicron, along with general Fed taper fears.
Here is December’s seasonal average (30yrs of data from Sentimentrader) and if we were to literally interpret it (not usually a good idea) we’d expect next week’s FOMC fanfare to include a market disturbance before Santa arrives around mid-month.
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