Just a day after the financial media told us the omicron variant and West Virginia Sen. Joe Manchin teamed up to beat markets down a whole 1%, they’ve headed the other direction…
But should this really surprise us? No… And that’s why it wasn’t even a factor when thinking about this week’s Fortune Research weekly watchlist.
Not missing a beat, the clickbait provocateurs over at CNBC flip-flopped and again acted like omicron was no big deal. Moreover, their cheerleader-in-chief and recent COVID-19 survivor, Jim Cramer, is back out there pumping up the market…
Amazingly, I still talk to people on occasion who think this organization does good analysis.
As per the usual, however, the anonymous finance-focused accounts on Twitter rightfully called out their B.S.
CNBC headlines when the S&P drops 1%: “stocks fall on Omicron concerns”
CNBC headlines when the S&P jumps 1%: “stocks rally as Omicron concerns dissipate.”
But the switch-up on omicron wasn’t the weird part about Tuesday’s headlines… Heck, I almost expected it.
No, the weird part was the absolute disappearance of anything related to my home state senator and the “Build Back Better” bill.
Here’s CNBC… not a word about it.
Just nothing… and Bloomberg?
Zip. Zilch. Zero. Nada. Bupkus… niente.
Which is amazing, considering the liberal media was so deeply ensconced in losing their damn minds Monday that actress/singer Bette Midler… of all people… unleashed this ad hominem attack on my home state of West Virginia.
My Response to Bette Midler’s West Virginia Comments
I consider myself relatively liberal, but insulting statements like these regarding flyover states made by progressive, rich, white, out-of-touch coastal elites are a huge reason why Democrats struggle to win elections in red and purple states.
The derision gushing from this uninformed diatribe is coming from a person who thinks they’re superior to the other party.
Well, spoiler alert, Bette Midler, when you convey that to people who identify with that other party — even if they may agree with your politics — they will take the other side.
This dynamic is called negative partisanship, and it was a big factor in both Donald Trump and Joe Biden’s presidential election victories.
And, true to form, my fellow West Virginians — many of them liberal — immediately went full Ezekiel 25:17, striking down upon her with great vengeance and furious anger, she who attempted to poison and destroy our brothers.
True to my own brand, I opted for a more subtle criticism, pointing out that West Virginia’s literacy rates are way better than New York’s.
Hey, someone’s gotta keep it light.
But the truth is that all of these reactions, whether they be from financially motivated media or ignorant singers… are hogwash.
We’re likely to get some form of a BBB bill… It’s just going to be on Joe Manchin’s terms, not on the progressives’.
Whether that means we get a new package or we trot each measure out to the Senate floor for an up-and-down vote, additional measures will be passed.
Perhaps that realization is why the market was rallying Tuesday.
Your Fortune Research Weekly Watchlist for Dec. 21, 2021
Perhaps it was a short squeeze, or some funds were just covering positions.
Perhaps it’s SANTAAAAAAAAAA!!!
But whatever it is, don’t be a cotton-headed ninny muggins like Bette Midler.
And take advantage of whatever little rally or dip the market gives us this holiday season.
Given recent volatility, we’re going to tighten up the Fortune Research weekly watchlist a little. First, we’re going to take the focus off of retail names — which we still like, though — and put it onto both big-cap tech and sectors that are about to flip positive on one-month momentum.
Source: Fortune Research, Bloomberg
Our coal names, Arch Resources Inc. (NYSE: ARCH) and Consol Energy Inc. (NYSE: CEIX), remain — they have been crushing it of late… and winter is coming.
Similarly, housing and basic materials — the iShares US Housing Construction ETF (NYSEArca: XLB) and the Materials Select SPDR Fund (NYSEArca: XLB) — remain as well given the strength of those underlying sectors.
Just to diversify there, we’re also adding in the Real Estate Select Sector SPDR Fund (NYSEArca: XLRE).
And finally, we’re adding exposure to big-cap tech through Apple Inc. (NYSE: AAPL), Microsoft Corp. (NYSE: MSFT) and the Technology Select Sector SPDR Fund (NYSEArca: XLK).
To the extent you already own any of these, selling a bit into this Santa rally to buy whatever is down is the prudent thing to do.
Like I said earlier, keep position sizing small as volatility levels remain high.
And I’ll catch you later with our Santa rally free trade.
All the best,