Moderna Steps Up

Dow: +470.63…
Nasdaq: +94.84… S&P: +41.76…

The S&P (+1.2%), Dow (+1.6%), and Russell 2000 (+2.4%) closed at fresh record highs on Monday after Moderna, MRNA, +9.6%) said its COVID-19 vaccine was 94.5% effective. The Nasdaq was the relative underperformer with a 0.8% gain. 

Ten of the 11 S&P 500 sectors contributed to the advance, led once again by the cyclical energy (+6.5%), industrials (+2.5%), financials (+2.3%), and materials (+2.0%) sectors. 

The prospects of having more than one vaccine in 2021 for mainstream use strengthened the market’s view that next year will feature improved economic and earnings growth. That’s why the small-caps and economically-sensitive sectors, which had noticeably underperformed prior to November, extended their recent outperformance today.

XLE has run 35% in just over two trading weeks. Hard to chase, wait for pullbacks. Today XLE kissed its 200-day moving average and that should act as a good pullback area.

Technology has been slower than the rest, but the chip sector (SMH) made fresh new all-time highs today, plus about 3%.

I’m watching PLTR, IPOB and a few others.

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