The first full week back in the saddle and Institutional Traders took us on a roller coaster.
The QQQs (+.8%) and Tech (XLK +.2%) continue to underperform while the strength was in Small Caps (IWM +1.6%), Midcaps (MDY +1.3%). Proxies for “risk on” revealed Bitcoin rallied +2.6% and also noteworthy ARKK ETF was +3.9%, both recovering their respective 50d MA.
Interest Rate Sensitive Stocks and the Financials (XLF +2.2%, BKX +2.4%) has a strong day.
RKT +6.3% Our Stock + Call Options position is working so far
UPST +10.7%, AFRM +9.1%, SOFI +6.9%
Semis Equipment Stocks were winners (LRCX +5.2%, KLAC +6.1%) while most Semis Fabless Stocks were modestly lower
Fiber Optic Stock took a beating today though some closed off their lows of the day:
AAOI -11.1%, LITE -7.5%, CIEN -6.3%, COHR -4.1%
ATI hit our profit target (5R) today before fading and is now closed
GE was up early but faded
TWLO is still under the pressure with all software stocks but closed mid range
AVGO continue to struggle
NTRA found support and closed in the green +3.8%
The volatility may continue for a bit as re-positioning is typical the first 2-3 weeks of January. In Friday’s GMU, I will share some ideas on how to find the new leadership for 2026.
Trade Well
J