Bitcoin rose sharply to 21 month high amid increased speculation that the SEC was close to approving a spot ETF for the world's largest crypto currency. According to Reuters, the SEC will notify aplicants by as soon as this week on whether they have been cleared to lauch their products by January 10. Bitcoin broke above 1 month trading range between $40000 and $45000, we need to see if it can stay before participating.
Treasury ETF TLT is down the 3rd day in a row today, and 10 year yield is up to 3.933%. Rising Treasury yield is negative for stocks.
World stock markets are mostly down in the first trading day of the year.
Barclays analyst Tim Long downgraded the rating of Apple (AAPL) from Equal Weight to UnderWeight, expressing concerns about a prolonged period of weak results and the potential for multiple expansion not being sustainable. AAPL price target set to $160 a near 17% downside risk. AAPL is down over 3.5%. All the "Magnificent 7" stocks are down.
The theme between now and middle of january is profit taking on high flying high tech stocks after a tremendous performance last year. Investors refused to sell stocks with big gain last year due to tax consequences are likely come out and sell at the new year. After initial sell off, Q4 earnings report coming out mid January will decide the fate of the stock market.
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