Dow, S&P 500 Close Out Historic 2020 At Records; Nasdaq Composite Clinches Best Annual Return In 11 Years

[Option Beast]( 01/02/2021   |   [View in browser]( --------------------------------------------------------------- [Dow, S&P 500 Close Out Historic 2020 At Records; Nasdaq Composite Clinches Best Annual Return In 11 Years]( Equity benchmarks finished higher Thursday, the last trading session in 2020 to end the year on a strong note after plunging into a bear market in February and March as the COVID-19 pandemic threw the global economy into a deep recession. The promise of vaccines and outsize fiscal and monetary-policy aid helped to foster buying over the past several months from the market's lows in March. [More...]( SPONSORED CONTENT [Options Trading System With A 94.8% Win-Rate On Last 727 Trades]( The key to being consistently profitable as a trader is to focus on high-probability trades. And in this powerful eBook by Dave Acquino, titled The Ultimate Income Trading System, you'll see exactly how Dave and so many of his students do just that. They make 4%, 5% or 6% on each trade and they're in the trade for just 11 hours. [CLICK HERE for instant access.]( [REFLECTIONS... The Santa Claus Rally by David Sager](#) The U S market closed early Thursday at 1 PM, and the Bond Market at 2 PM in observance of Christmas Eve. Santa Claus may not be coming to town, although I believe he will show up, fully expecting that Wall Street will receive a visit, if history is any guide. Equity Traders will be happy, thus 'The Santa Claus Rally' will officially begin. (on Thursday 12-24) The consensus is that these seven days, five trading days in December and two sessions in the new year is considered one of the best seven day stretches for the equities market, boasting an average return of 1.3%, the second best performance among any seven day period in a year. That span has also finished positive in nearly 78% of some 250 trading sessions, according to Ryan Detrick, chief market strategist for LPL Financial, in a Wednesday research note. Detrick says that it isn't exactly clear why this December stretch proves historically to be such a good period on average, but some speculate that institutions squaring up their books at year-end, holiday consumer spending boosting corporate sales, thin trading volumes, with many investors on vacation, and optimism over the coming year could all be factors in the bullishness that encompasses the financial markets. Add in the past year of dealing with a severe pandemic and you have yet a solid reason to want to be happy with 'good news' of vaccines coming forth and averages that have risen beyond all predictions amidst pandemic turmoil the past nine months. Mr. Detrick adds, "The bottom line is that Bulls tend to believe in Santa," Mr. Detrick writes. Let's hope Santa visits Wall Street, and keeps the believers happy! The Dow Jones Industrial Average, commonly referred to as 'The Dow', recently topped the 30,000 level for the first time ever. The 40,000 milestone could come sooner than many think. This is very possible in 2021. Even if the Biden administration raises taxes on corporations and high earners, which is unlikely to happen next year, what might happen next year however is another multi trillion-dollar stimulus package, student loan forgiveness, and falling unemployment. All this of course is more likely if the Democrats win Georgia, the runoff for the two senate seats up for grabs. Add in extremely low interest rates near zero levels that will dominate 2021 and longer, and a hefty projection of the GAP, some suggesting near 6% in 2021, which would be the highest level in more than 35 years. Add in the potential 'tailwinds' that could propel most of the 30 stocks in the Dow higher, and you have a recipe that could boost the market significantly...to 40,000 in 2021, not a longshot.....it will happen sooner than later. Bitcoin hit $26,434.10 Saturday, up again after blasting through $25,000 a day earlier, up 7.33% on the day. Year to date Bitcoin is up more than 250%, with institutional investors jumping on the wagon; many who don't want to be on the sideline. Many view Bitcoin as a hedge against the shrinking dollar, and the massive government spending, namely the stimulus packages. The SEC has continued to deny the inception of an ETF as a vehicle of investing in Bitcoin, thus making it very cumbersome to acquire in a comfortable manner. In time acceptance of Bitcoin will loosen and allow the small time investor to participate. Presently a monopoly of wealthy investors is dominating the trading. Chinese stocks have gained $4.9 trillion in value this year, aided by the country's rapid recovery from the coronavirus, a string of initial public offerings and a blistering rally in shares of consumer and technology companies. Chinese businesses listed on exchanges here in New York to Shanghai have added 41% to $16.7 trillion, according to S&P Global Market Intelligence data for the year thru December 22. That outpases a 21% run up for American companies, to $41.6 trillion. "It's been a very strong year" for China, said Brendon Ahhern, the chief investment officer for KraneShares in New York. He said the country's economic rebound, global investors' appetite for high growth stocks, and a robust IPO market had all worked in China's favor: "The end result is pretty dramatic growth in the size of capital markets." The surge comes despite heightened friction with the U.S. over technology, trade and finance, and attempts by the U.S. government to discourage American pension funds and other institutions from holding Chinese stocks, not to mention the tariffs enacted some time ago. RUMBLINGS ON THE STREET President Trump, committing regarding the stimulus package, WSJ "Why would politicians not want to give people $2,000, rather than only $600? It wasn't their fault, it was China," the president wrote on Twitter on Friday, "Give our people the money." Toyota President Akio Toyoda WSJ Mr. Toyoda said that if Japan banned gasoline powered cars and moved to electric vehicles too hastily, "the current business model of the car industry is going to collapse.," He was speaking on behalf of Japanese automakers in his role as head of a local industry association. Mr. Toyoda said the electricity grid couldn't handle extra summer demand and observed that most of Japan's electricity is generated by burning fossil fuels. President-elect Joe Biden, Barron's "It will be the first priority, the second priority, and the third priority--to deal with Covid and bring down the spread and bring down the death rate." Speaking at a luncheon of economic leaders. Adam Jonas, Morgan Stanley Auto Analyst, Barron's Apple is not just going to ignore a $2 trillion market. Mr. Jonas wrote last week that he and his tech analysts colleagues have long thought that Apple would one day design and engineer a car. "It's not that we believe Apple wants to get into the auto industry as conceived by today's auto companies, but that Apple may have an interest in enhancing the driving experience with vertical integration of hardware, software, and services," he said in a research note. [Got $10,000 and 10 Years to Wait? These 3 Stocks Could Make You a Fortune]( 2020 was certainly a year like no other. Pandemic-induced fear resulted in one of the fastest declines in stock market history, followed by one of the most rapid recoveries on record. The recent introduction of at least two coronavirus vaccines has given people hope and pushed the major stock market indexes to new all-time highs. It's still unclear when this pandemic-influenced economy will actually get back to normal and uncertainty still reigns. Yet two things are certain: Investing in quality stocks over years or perhaps decades remains the clearest path to generate wealth over the long term, and there are still stocks worth buying, even as the market is setting new benchmarks. Assuming you have a sufficient emergency fund built up and $10,000 (or less) that you don't expect to need over the next five to 10 years, here are three companies that are set up to flourish in the years and decades to come. [Article continues...]( [Is Your Stimulus Check Taxable?]( I've heard the question many times: Will I have to pay tax on my stimulus check? The tax code says you have to pay taxes on "all income from whatever source derived," unless it's specifically exempted or excluded. That's a pretty broad definition that seemingly would include money from the government. And, strictly speaking, there's no specific exemption or exclusion for stimulus check money. So, stimulus checks are taxable - right? [Click to continue reading this article...]( [3 Retirement Assumptions That Could Leave You Broke]( In the course of your retirement planning, you may make certain assumptions -- that you'll be able to work until a certain age or that your investments will grow in a certain manner, for example. But there are a few assumptions you really can't bank on. Buying into the following beliefs could leave you cash-strapped during your senior years. [More here...]( SPONSORED CONTENT [Can Your Nest Egg Survive A 89% Market Crash?]( The stock market crashed 89% back in 1929... and it can happen again. But options give you the potential to go after profit even when the market crashes. Getting started is simple. 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