Playing Out To The Letter
S&P 500 and Nasdaq did indeed see much selling Friday, prior pump nothwithstand – just fueling interest to capture those capital gains in the New Year as the higher the price, the greater the incentive to take advantage of it as Wednesday‘s last two hours‘ slide was vicious. It was simply too great an opportunity to pass by as 6,936 resistance level was again reached around the opening bell.
Does it mean that we‘re in for a bad year in equities? Not necessarily – AI is not in a bubble (no one needs to debate whether we‘re in a bubble or not – if we were, there would be "this time is different“ chorus and no doubters of brighter days ahead), earnings are good and will drive multiples higher (first earnings rise, then confidence drives multiples) not to take advantage of (premium yet free for a day), and show me a bear market / recession with financials and retailers doing this well.
Will things change? Absolutely, for 2026 will be a leaner year than prior two ones, no clear double digit gains. Serious correction will come, but we‘re still in the first days of the year – one that has started spectacularly well for clients.
More By This Author:
Early 2026 ExpectationsStock Market Game Plan
Santa And 2026 Prospects
Subscribe to Monica‘s Insider Club for trade calls and intraday updates. more
Comments
