Examining the Current State of the Santa Rally and Market Overboughtness

Markets closed lower yesterday after a 4 week winning streak despite record Black Friday numbers, mostly in E-commerce. We are overbought and will be selling off a tad more before it is time to buy. Right now is a great window to optimize your portfolio. For instance, I sold my Chevron (CVX) position because oil prices will be steady but oil producing countries will pull back slightly on production to keep the price "high". Around summer is usually the peak for oil prices because of the high demand travelers have. Winter is the opposite, hence lower prices=lower earnings.

What's new on the Street?

Shein is going public valued at around $66 Billion (that's more than Lululemon!) .The Chinese maker of "fast fashion" has been under scrutiny for allegedly using Uyghur forced labor in the supply chain. Not good.

Which Stocks to Watch

Shopify (SHOP) got a cut to underweight from Neutral, even after E-Commmerce on last Weeks Black Friday had record sales. I beg to differ. Consumer are looking for a deal. If it's not on Amazon it's on Etsy or Shopify, or Walmart, in that order.

Etsy (ETSY) gained on showing record visitors for Black Friday. I have been waiting for these e-commerce darlings to come back and I think we are getting there.

Follow me Here!