We have a busy week ahead starting with a new NASDAQ report to be issued at the open on Monday 01/25/2021
Good day everyone,
Here we are, nearing the end of the first month of 2021. There is a new administration in Washington D.C., and we will have to wait and see if that’s a good or bad thing for the economy.
The markets have shown us that they aren’t influenced too much by politics except to the extent that Federal Reserve policy, business regulations, and the Treasury Department may have a significant impact. The major indices remain at lofty levels, the DJIA is still over 30,000, the NASDAQ is still over 13,000 and the S&P 500 is still over 3,800.
The holidays fueled a severe outbreak in the Covid 19 pandemic, but there are now indications of a slowing down of infections. Vaccines are rolling out across the nation, albeit slower than anticipated. Amazon’s CEO wrote a letter to President Biden offering to assist in the nationwide administration of vaccines. We don’t know about that, but we know we can order something on Amazon and it’s on our doorstep the next day.
The vaccine being developed by Johnson & Johnson may also be a bright light in the pandemic darkness. Their vaccine is in clinical trials right now and indications are it may work as well as the current vaccines with less side effects and it could require only one dose. We hope everyone reading this stays healthy and safe.
The NASDAQ Biotechnology Index (NBI) is at 5,183, having started 2021 at 4,730. That’s a 9.5% gain in just the first 14 trading sessions of the year. Therefore, we remained focused on the biotech sector; it is HOT right now. Developments at biotech companies are coming fast and furious and catalyst announcements in the sector are daily events.
That doesn’t mean there aren’t some jewels to be discovered outside biotech…
We are looking at a company right now outside of the biotech sector. This company has some attractive financial metrics and immense potential with shares that are on fire. The success this small cap company is having may propel it much further with near-term catalysts looming.
Stay tuned and stay informed.