Stocks Extend Rebound; Tesla, Fortinet, Icon Make Strong Gains

TL;DR

The market shows strong momentum with the Nasdaq bumping against its 50-day moving average. Stocks like Tesla, Fortinet, and Iconic Labs are showing positive breakouts.

Transcript

good afternoon everyone and welcome to stock market today it is uh wednesday december 22nd 2021 and i'm justin nielsen joined by ed carson today while alyssa is on vacation and on the show today we're gonna be talking about a very strong market is the santa claus rally for real and to be believed um and also we'll talk about a few stocks we'll go i... Read More

Key Insights

• 🫥 The Nasdaq's approach to the 50-day moving average line indicates a critical resistance level.
• 😥 High market volatility in December presents challenges in finding optimal entry points.
• 🤩 The S&P 500 exhibits relative strength, clearing key moving average lines.
• ❓ The Russell 2000 reflects weak market breadth, which could hinder sustained market rallies.
• 🛀 Tesla, Fortinet, and Iconic Labs are showing positive breakouts and favorable technical indicators.
• 💌 Investors should cautiously enter positions and let market momentum guide further investment decisions.
• 📶 Potential strength in stocks like Tesla and Iconic Labs would likely reflect a broader market rally.

Questions & Answers

Q: What is the significance of the Nasdaq approaching its 50-day moving average line?

The Nasdaq bumping against its 50-day moving average line indicates a key resistance area. A breakout above this level would signal strong market momentum.

Q: Why has market volatility been high in December?

December has seen the highest level of volatility since 2018, with the average daily move being 1.5%. This volatility can lead to erratic price action and uncertainty for traders.

Q: How does the S&P 500's performance differ from the Nasdaq?

While the Nasdaq has shown more volatility, the S&P 500 has cleared its 50-day moving average line and is close to all-time highs. This indicates relative strength and positive market action.

Q: What is the significance of weak market breadth in the Russell 2000?

The Russell 2000's inability to surpass moving average lines and its lagging action suggests a lack of market leadership. Weak market breadth can hinder sustained market rallies.

Q: Is Tesla showing signs of a comeback?

Tesla is showing new life and is the top performer on the S&P 500. It still needs to break through resistance levels, such as the 50-day moving average line, to confirm a sustained upward trend.

Q: Why is Fortinet being considered for a comeback?

Fortinet, a leader in computer software security, has shown relative strength and held up better than other software makers during recent market volatility. Its recent breakout and high relative strength line are positive indicators.

Q: What makes Iconic Labs an interesting stock to watch?

Iconic Labs, a contract research organization in the medical research field, has experienced rapid growth and recently made an acquisition. The breakout and high relative strength line make it an attractive pick for investors.

Summary & Key Takeaways

• The Nasdaq composite and S&P 500 show strong closing numbers, with the Nasdaq approaching its 50-day moving average line.

• Market volatility has been high in December, making it difficult to gauge the best entry points for stocks.

• The S&P 500 exhibits strength by clearing its 50-day moving average and 21-day moving average lines.

• The Russell 2000 lags behind, still below its moving average lines, indicating weak market breadth.