DJIA: 36,117
They say November borrowed from December. Momentum isn’t something that’s borrowed, it’s something that unwinds of its own accord. Last Friday’s 6-to-1 up day and the 10-to-1 up day of 11/14 speak to momentum which will take time to unwind. December’s early problems might best be blamed on December – it’s a good month but one rife with crosscurrents. Will they continue to sell the winners, the Mag 7 and the rest of the Tech, and buy the losers, the Financials and the rest? Or will they revert to the winners – Apple (194) did break out on Tuesday. Regardless of the outcome there, the sold out seem just that – sold out and unlikely to go lower.
All Bitcoin wants for Christmas is its ETF. It may not be for Christmas, but it’s said to be in early January. What is seen as inevitable rate cuts also has been a driver for Bitcoin, and the usual suspect short covering. We are not quite sure of the logic here, but we are sure of those lines on a piece of paper called a chart. It’s an impressive break out and uptrend. Bitcoin, of course, isn’t for everyone. And it may well be another case of buy the rumor, sell the news. Still, it seems another case of momentum not likely to go away in a hurry. The existing ETF, BITO (21) seems a reasonable way to participate.
Frank D. Gretz
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