Last Friday the DOW led the market gap down and lost 2.53% due to the new COVID variant Omicron emerging in South Africa. The market is afraid of a new worldwide lock-down that will damage the economy. Did the market act like shoot first and ask questions later? Is the new variant Omicron really that bad?
The recent rally in electric vehicle stocks such as Tesla, Lucid and the new IPO Rivian got people talking about Apple’s potential entrance to the electric and autonomous vehicle market in 2025. Bloomberg released a report to confirm the rumor, which caused Apple stock to rally to a new high.
The indices had a quick 3% dip due to inflation scares, but the dip-buying army jumped in with both feet after 3 days of mild selling. The indices closed in a very positive posture last Friday. Overall the market is very bullish and the year end rally is still in progress.
The stock market has kicked the seasonal pattern in high gear since the early October low. It is marching on regardless what’s happening in the real world, good or bad. This is what a melt-up market does. It obliterates all doubters by hurting the daring shorts and keeping the sane investors who are afraid to chase out of the raging market.
