Nasdaq 100, Tesla and Bitcoin Carry Hopes while GBPUSD, GBPJPY Suit Conditions
2020-12-21 02:00:00
John Kicklighter,
Chief Strategist
Friday may have closed out the market’s practical liquidity for the year, but speculative turbulence continues to churn
Tesla’s inclusion into the S&P 500 will stir Monday S&P 500 volatility, Bitcoin is still pushing record highs and IPO news continues to fuel appetites
US stimulus and Brexit talks are lingering uncertainties and sources of potential volatility in these final weeks of the year
Little Relief in Risk Trends as Liquidity Fades into Final Two Weeks of 2020
We have closed out the last full week for liquidity this trading year. While we still have two weeks of 2020 left, market liquidity through this period will be thin and choppy. With much the Western World closed this coming Friday for the Christmas Day market holiday and the following Friday an even broader shutdown for New Years Day, investors will be particularly cognizant of the gaps that could increase the risk to positions they intend to hold through the turbulence. We perhaps some of the recognition to the difficult ahead in Friday’s price action and volume for the likes of the S&P 500, Dow and Nasdaq 100 – though that could find just as much influence from the forthcoming Tesla inclusion. Between record highs, unfulfilled fundamental expectations and seasonal forces; unusual conditions should be considered high probability.