“Santa Claus Rally…Anyone?” – Vista Partners Daily Recap 12/26/2018
Santa dropped off one last Christmas gift for investors as US stocks soared on Wednesday, having one of their best days ever. Both the Dow and the S&P 500 set new records for the largest point gains in a single session. The S&P 500 shot up 4.96% (116.60 points) before trade ended, and the Dow soared 4.98% (1,086 points). The Nasdaq did exceptionally well today, too, as it finished the day with gains of 5.84% (361.44 points).
Every component of the Dow saw gains today, with Coca Cola (KO) having the smallest percent change and that was still an increase of 2.13%. NIKE (NKE) had the biggest jump with a gain of 7.21% and Apple (AAPL) was close behind as it rose 7.04%.
Atossa Genetics (ATOS) got left behind and actually ended the day with losses. It slipped 3.16%.
The seven-day period right after Christmas and just into the new year frequently brings what is called a “Santa Claus rally.” But today’s gains far outpaced the average 1.7% increase the S&P 500 normally sees.
Today’s gains are a stock contrast to the pitiful performance during Monday’s shortened session which marked the market’s worst Christmas Eve performance. Investors were encouraged today by tweets and interviews coming from President Trump saying that now is a “tremendous opportunity to buy.” Trump’s team has also been working to shore up confidence in Fed Chairman Jerome Powell’s job security and to reassure that there is no liquidity crisis.
We promptly locked in out TVIX and TZA gains this morning and will opportunistically locked in our investments in the significantly leveraged & bearish electronically traded funds, TVIX & TZA (bets respectively against the broad market & the Russell 2000 which were down today after closing at $78.72 up +$6.64/share, +9.1% & $18.62 up +$.95/share, +5.38% on Monday. We will look to and them periodically to provide an opportunity to capture the increased volatility of the markets and that continue to serve as a diamond in these rough waters.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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