First Trading Day of the Year

It’s the first trading day of 2022. Historically, this has been a good time for the stock market. Today is a good example of a contra-trend day. That’s a fancy term for “all the stuff that’s been lagging is leading, and all the stuff that’s been leading is now lagging.”

As I write this, the S&P 500 High Beta is up 1.21% while the S&P 500 Low Vol is down 1.59%. That’s a wide spread for one day. To give you an example of the high betas, Tesla has been up as much as 11% today. Elon Musk’s net wealth increased by around $20 billion this morning (although he’s been dumping shares recently so I don’t know the exact amount).

While last week was very slow for economic news, this week will have a lot more. Of course, the big jobs report is due out this Friday. On Wednesday, the ADP report is due out as are the minutes from the Fed’s last meeting. Also, the ISM Manufacturing Index is scheduled to come out tomorrow.

One report this morning came from the Census Bureau. Construction spending rose by 0.4% in November. In the last year, construction spending increased by 9.3%.

Posted by on January 3rd, 2022 at 12:01 pm


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