Your Wednesday Blip 12/30/20

Your Wednesday Blip 12/30/20

They say that hindsight is 2020. Let’s hope so.
At the close the Dow was up 73 points to 30,409. Trading volume was mixed. There will be a partial trading session tomorrow but as of today the Dow was up 6.5% for the year and the S&P 500 was higher by 15.5%. Meanwhile the NASDAQ cruised to a stunning 43.4% gain driven by tech companies that benefited from the pandemic and its resulting move to digital online work, play and scouting. Both IBD and BTS indicators remain positive.
Vaccines continue to work their way into the system. Britain seems to be leading the way as it approved another vaccine. This one is from Oxford/AstraZeneca. The nice thing about this vaccine is the cost which is $4 per shot vs $20 for the Pfizer product and $33 for Moderna’s vaccine. Reports of rising covid cases in various Chinese cities and a new strain of covid now in the UK add to the overall uncertainty of this ongoing battle however recent data from First Trust points to an infection rate in the US that has peaked and is starting to fall.
Bitcoin began the year valued at about $7,000 but with all the money printing and fears of a declining US dollar several big players began buying crypto currency as an inflation hedge. PayPal, Square, Fidelity and Citigroup were major purchasers of this “digital gold” along with retail speculators and the result was that Bitcoin is up about 300% this year and has outperformed gold and the Dow by 10X. Where it goes from here is anyone’s guess but a regulatory awakening could throw some cold water on what has been a hot investment.
Copper, which is not digital, started 2020 at $6,100 per ton then fell 50% during the pandemic but now with supply chain issues and recovering demand in the US, China and elsewhere, prices have risen to over $7,600 per ton which is a 7 year high and sending shares of copper producers like Freeport McMoRan through the roof. This is not good news for electrical contractors in Seattle however since wiring costs will rise along with increased activity from the copper theft crowd.
Tomorrow will be a short trading session and markets will be closed on Friday. This is the final Blip for the year.

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