Your Wednesday Blip 12/23/20

Your Wednesday Blip 12/23/20

Stocks finished that day mixed with bank and material stocks (iron ore, timber and copper) leading the way while tech stocks took a breather. At the close the Dow was higher by 114 points to 30,129. Trading volume was lower. Both BTS and IBD indicators remain positive.
Shares of electric truck maker Nikola slid over 10% today after a big commercial customer, Republic Industries, canceled its order for 2,500 electric garbage trucks. The deal had been announced in August of this year with initial delivery and on road testing of the trucks expected in late 2024. Now however the two sides have agreed to walk away. This comes on the heels of news that General Motors also canceled its $2 billion investment in Nikola at the end of November. The fairytale rise of Nikola’s stock began to unravel when a short seller accused the company of fraud forcing an SEC investigation which lead to founder Trevor “Mincemeat” Milton to bolt like a turkey through the corn. Shares of Nikola have fallen over 80% since June. Where it goes from here is anyone’s guess but the company has no revenue and likely will have to pay back deposits to customers who placed orders.
For Christmas the markets will close early tomorrow and all day Friday. Normal trading will resume Monday the 28th. There will be no blip tomorrow.
Cleo, John and I wish all of you a Merry Christmas!