Market Briefing For Thursday, Dec. 9

Anxiousness and volatility - persist, related to stocks, COVID and well, more. A story from the UK today, attributing hundreds of thousands new irregularities in 'heart' conditions among young people in Britain, passes that off as PTSD, which for the most part I view with suspicion. Although there's some of that.

Omicron, Virus, Dangerous, Assembly


Young people do not have that many myocardial infarction heart attacks or the other attributed disturbances, or even inflammatory marker reactions. Unless of course there's a contributing factor, which in this case could be.. vaccines.. 'or' more likely, COVID itself. Both can cause myocarditis, but not particularly a PTSD diagnosis. Although no doubt most everyone has some angina over all of the challenges and speculation these nearly two years now.

This matters because now we're told that a 3rd Pfizer shot (perhaps Moderna will be similar) fends-off Omicron, but they don't mention antibody reductions also occur (PFE, MRNA). For that matter Israel is now on the 4th shot (2nd booster rounds). It all tells me we need a 'Pill' for this, not 'just vaccines', a view I've long held.

Executive summary:

  • Acceptable S&P and large Index consolidation (some cases upward at a reduced pace), while small-caps generally advance.
  • Gains were technically important in several small-caps we regularly follow and while not singled-out, they reflect a general winding-down of tax-sale or other factors that recently repressed prices.
  • This doesn't mean we won't get a partial retracement of recent bounces, in fact we should, but it does argue for additional 'toes in the water' for a few of the favored stocks, should we even get a meaningful retreat.
  • The news is slightly better regarding Omicron, and next week we have a Fed meeting, and more expectations of jitters (however tapering has been in the script for months as forthcoming, hence no shock is really likely).
  • With little change I've been focused on small-cap stock action and very pleased with the recent picking-up of a handful of repressed stocks during the recent brief panic (as they raided the 'House with stocks of ill-repute' and thus created buying opportunities which are working-out so far).
  • Among these Sorrento (SRNE) has popped and awaits an FDA approval, with the ongoing progress in international sales reflected by Mexico and Brazil, as shorts (of which there are plenty) likely to panic if it moves up much more.
  • Another low-priced stock, which is a company emerging from struggling in recent years. is LightPath (LPTH), which I'd repeatedly pointed-out benefits from a sober realistic new management team that cares more for straightening out operations, culling-out deceit in China (cellular components), and now it's new 'direction' vision starting to take shape from their Orlando HQ.
  • If a holder (or speculator) in LPTH, please read my embedded comment below, which highlights directions I think they may be moving in already, a possibility some funds might have gleaned if they look(ed) close enough.
  • I realize there are curmudgeons who berate that stock (including me once or twice during 'prior' management casualness, to use a nice word), thus I take recent observations of a stage favorably set for real revival seriously.
  • In addition to my comment about a BOD member from Qorvo (QRVO), notice I am focused on their venturing into laser / infrared space communications, plus the former ISP Optics CEO (spun-off with drones) on the BOD too, one of Qorvo's customers is Apple, although I'm not making association with LightPath, though you never know given LightPath did announce the initial plans for FreeForm Optics was for AR, and VR products (among a few large players in that 'space' are Apple and even 'Meta').
  • Looming further down the line with disruptive products, but shares starting to firm-up, are stocks like Rockley Photonics (RKLY) and even more speculative Canoo (GOEV) in EV, all represent diversification within key themes of our times, as an addenda I suspect Foxconn's new Texas plant may relate to what is called by Apple a 'skateboard platform', but Canoo has that trademarked, so anyone's guess as to who will be or is working with whom in 2022.
  • A reminder: such stocks are speculative favorites to have (or on pullbacks still) to accumulate for those accustomed to risks not comfort, going into a speculatively different 2022.
  • Core big-caps for years are of course retained too, like homerun hit AMD, Ford, Texas Instruments, Chevron, and Apple as well as already a bit higher speculations, like AEHR Test Systems (it might be very strong at points next year), though we don't draw emphasis on stocks already up in price (or those languishing) as much as we do what is believed attractive (and sometimes that's very premature) (AEHR, F, AMD, CVX, TXN, AAPL).


Market consolidation should prevail, and whether this week or more likely next (even after the FOMC conceivably), an assault on record highs for S&P may very well be in the cards. Meanwhile small-stocks are the action.

2022 will mark the end of the 'acute' state of the pandemic and the chronic or endemic phase, will see the "Roaring '20's" resume, and in-part led by a new generation of new-era stocks as we've outlined just a handful. That's entirely an optimistic perception of a Fed that doesn't really want to hammer economic recovery, but simply fuel inflation to repay debt with depreciated Greenbacks.

This is an excerpt from Gene Inger's Daily Briefing, which typically includes one or two videos as well as more charts and analyses. You can subscribe for  more

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.