HGSI Doc Top Down Review 11.22.2020

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Greetings and Welcome to this Week’s Review

Small Caps continue to outperform with short term weakness appearing in the DOW and SP500.

Seasonality is turning positive and perhaps can help the markets regain their bullish posture. We continue to battle the news flow with risk on vs off based upon rising COVID counts and positive news on a vaccine.  Regardless of the day-to-day volatility,  we are getting closer to the end of this crisis every day.  That said hospitals throughout the country are bracing for the impact of upcoming Super Spreader Events known as Thanksgiving Dinner.

One wonders how much of the weakness in those stocks that have had giant gains off the lows has been because of concerns about changes in tax rules based upon the change in POTUS.  There was talk about raising the Long Term Capital Gains rate up to the much higher income tax rate.  This probably has led to many selling some of their positions.  Since White Sale Rules do not affect gains, I have done this as well and then bought back those positions.  As tax loss and this year’s gain selling slow down perhaps we can see the uptrends continue.

Have a Safe and Happy Thanksgiving



Dr. Jeffrey Scott is a private investor and educational affiliate for HGSI Investment Software LLC