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The Year in Review January 2, 2022

Posted by Tom in Thoughts.
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Dec. 31, 2021 – First off . .  Happy New Year !  Since this was a very low volume and shortened trading week I’ll suspend my normal market comments this week and go right to the chart of the NASDAQ Composite Index.

click on chart to enlarge

The indicators and price action are looking better but we need to break and close above the 15901 resistance level soon.  Then of course go on to challenge the previous high.  The next 2 weeks will give us an idea if a new bullish trend is beginning or we we’re just falling back into congestion.  Stay tuned. 

The next chart is a relative strength chart of key international indexes for 2021.  (all start at the same 0% point on December 31, 2020; chart courtesy of StockCharts.com, used with permission)

click on chart to enlarge

Now for all of those trading Crypto I decided not to put that on the chart (i.e. ETF GBTC).  The reason is that it was EXTREMELY volatile.  Case in point: starting 12/31/20 at 0%, at peak for the year of +77% on 2/19/21, then -25% for the year on 7/20/21, then back up to +67% for the year on 11/9/21, before finishing at +7% for the entire year overall.  I dare say that the daily volatility in between was exceptional too.  If one trades crypto, one must be exceptionally nimble and have a plan.   (i.e. sure sounds like “day trading” to me . . . . not my style at all)

About the only thing that I can say is that 2022 will likely not be the same as 2021.  I am expecting more volatility in the stock market.  Wishing you success and Good Health in 2022.  ……..  Tom …….

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