Blue chips are doing well, tech is still selling off, the latest on the omicron coronavirus variant — and more in Monday’s stock market recap.
Bitcoin is down 30% from the all-time highs in November, hitting a low just below $43,000 before stabilizing on Sunday.
We’re starting to see that market cap rotation out of technology stocks and other riskier assets like cryptocurrencies that I’ve been talking about. Investors are moving to safer assets like blue-chip stocks in the Dow as fears mount over how the omicron variant might affect the global economic recovery.
The good news is fears here in the U.S. might be overblown, as it becomes apparent that the omicron variant isn’t more deadly than others. I’ll have more on that, and how it’s affecting the market, in Roger’s Radar below.
In this morning’s stock market recap, you’ll learn why tech is weaker compared to blue chips… which sector is set to rise over the near term… which sectors to avoid in the near term… whether the bond market is diverging and what it means… what volatility is pointing to right now… why the put/call ratio is giving us the clearest signal in over a year… why consumer staples are rising and what to expect from tech… and a full outlook with an actionable plan to trade this bumpy market.
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Roger’s Radar: Omicron Variant Selling Is Overblown
On my radar this morning is an interesting story I found on CNBC in regard to the omicron variant and all of the selling we’ve seen recently. And the fact is, this new variant isn’t enough reason for investors to sell everything and run and hide… especially when looking from a historical perspective.
Yes, we’ve seen some volatility. But it’s important to look at the longer-term trend in the history of the VIX volatility index…
There isn’t any instance across the 19 biggest VIX spikes of the past three decades after which stocks weren’t positive a majority of the time one month, three months, six months, and one year later. One month later, stocks were only up an average of 1%, but were positive 70% of the time, and the numbers get better with time.
The point being that, yes, now is no time to be a hero. But it’s likely that those who sit tight will be rewarded when and if this all blows over and the reopening continues. We’re at a major turning point for blue-chip stocks, so be sure to watch today’s video for my full thoughts!
Stock Market Recap: By the Numbers
This morning’s stock market futures recap:
- Close: 34,580.08.
- Futures: 34,845.
- Change: +274.
S&P 500 (mini)
- Close: 4,538.43.
- Futures: 4,562.25.
- Change: +24.75.
- Close: 15,712.04.
- Futures: 15,734.75.
- Change: +15.75.
- Close: 2,159.31.
- Futures: 2,182.7.
- Change: +23.4.
Note: Updated as of 9:26 a.m. EST
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Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.