My Daily Observation

The Federal Reserve concluded in their recent announcement that they would keep rates low to eschew the high rises in prices for products and services.  Powell also stated that it was “highly unlikely” that the goal to reach full employment would be achieved in 2021.  As a reaction, the financial markets experienced a sharp decrease in prices after traders realized that with certainty that economic growth was still a challenge in the area of both health care and unemployment. 

​Reflecting on GameStop (GME), the traders tried again earlier in the last couple of weeks to surge the financial security with a vengeance, implementing bull spreads to cap losses and to goad on a new sense of quantifiable certainty.  The chart result is delineated as follows, with volume being the blue bars and the Accumulation/Distribution Line (AccDist) Study used in ThinkorSwim to illustrate in inflow of money into GameStop:

As we can see, the general financial markets were not expecting this resurgence to take place, due to the ADX (ADX) Study (red) on the bottom row. 
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Looking ahead, we can predict that the crowd will be looking to capitalize on health care companies with cheap stock prices, but that are aligning with the large health care companies to espouse in the COVID Vaccine.  The firms that are willing and able to demonstrate consistent technical performance with solid fundamentals will be the better option when decision-making comes around on their earnings announcement date.  In analyzing a health care firm, it would behoove the intelligent investor to corroborate positive indicators with economic research around the geographic region and to aggressively look for congruencies, which will pay dividends.  Paradoxically, the annual financial statement analysis for a firm in the last 3-5 years will also be a valuable part of financial security analysis, due to the geographic skewness in rules and regulations in small businesses in its given geographic area.