It’s a New Dawn, A New Day… - And so far markets continue feeling pretty good. Much chagrining took place over the prospect of the White House and Congress being under one party’s control but like everything else this market faces, it easily brushed it off its shoulder. Interestingly, the sector/style of stocks most viewed at risk were tech/growth/momentum but over the last two days they’re having a go. At the COB yesterday afternoon, the SPX, DJIA, CCMP, RTY, NYFANG+; you name it, it likely closed at a new high. Of course some are bit more concerning than others. What does the WFH ETF hitting a new high say about all that "vaccine hope" baked into the outlook for economic recovery? FAAMNG roaring back to life may feel good for indices, but remember big Tech was the safety play last year. And if you look at the chart below, it’s not just the FANG GANG lifting the Nasdaq (and large parts of the S&P) boat. Alternately, the reflation/reopening trade has stumbled, lagging growth by a huge margin yesterday and doing little to close that gap today.
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