We urged our Gold Members to ignore the short term noise from the omicron variant that wrecked havoc on all asset classes starting late November as we entered positions in TQQQ near the early December lows. As expected, major indexes last week closed near all-time highs with many commodities, energy, and crypto assets all regaining lost ground from the mini omicron crash.
The short-term technical outlook showed positive developments. The S&P 500, the Dow, and the Nasdaq are now all back above their 50-day moving averages and are also well above their 200-day moving averages. Small-caps continue to struggle compared to the major indexes as forecasted. The Volatility Index (VIX) plunged as stocks bounced back, as the fear gauge dipped below 18 for the first time in a month on Thursday, and closed well below the key 20-level and both of its moving averages. Bitcoin also regained key ground showing a stronger technical outlook into this week.
Economic data this past week:
US GDP: Beat
Consumer Confidence: Beat
Durable Goods Orders: Beat
Personal Income: On target
Personal Spending: On target
Economic data this coming week:
Manufacturing Index, Case-Shiller Housing Price Index: Tuesday
Pending home sales: Wednesday
Chicago PMI and weekly jobless claims: Thursday