Wall Street has certainly started 2022 off on a bullish high, and it looks like that bull has room to run.
![A traffic light flashes green in front of Wall Street.](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
The S&P 500 has been consolidating near its all-time highs for the past week as traders have been wondering if the index can go any higher. Based on the sectors that drove the Santa Claus rally that started on Dec. 20, we think it can.
Specifically, the energy, consumer discretionary, financial, industrial and basic materials sectors have been driving the bullish uptrend. These are the exact sectors we would expect to see outperforming when Wall Street believes there is further economic expansion ahead.
With the exceptions of energy stocks doing so well because the price of oil is rebounding and technology stocks not doing quite as well because Treasury yields are rising, traders are plowing money into the sectors that typically benefit from economic expansion.
This makes sense now that Wall Street seems less worried about the Omicron variant shutting down the U.S. economy – thanks in large part to the CDC reducing its quarantine guidelines.
We expect the S&P 500 to consolidate above its up-trending support level at 4,720 as Wall Street gets ready for earnings season to kick off in mid-January. There will be plenty of price movement and volatility in individual stocks that we’ll be able to take advantage of during that time, but on average, we expect the major indexes to hold steady.
The long-term bullish uptrend that dominated the S&P 500 during 2021 is still intact. We anticipate it will carry on in early-2022.
How We Fared in 2021 On Wall Street
As you know, every week we share with you some trading opportunities found in our elite trading research service, Strategic Trader.
But for today, we want to tell you how our readers had the chance to do in 2021 — and that we intend on repeating the pattern this year (and hopefully beating it).
In 2021, we closed out 145 shorter-term trades. On average, we held our positions for 20 days, and out of the 145 closed positions this year, only six were losses — landing us at a 96%-win rate.
Of those 139 winners, 80 were single-digit wins and 20 were double-digit. All in all, with losses included, our average win per trade was 4.63% — and the sum of our wins and losses was 671.31%.
As you can see, a little goes a long way. While we aren’t pulling the ridiculous 1,000% percent gains in five days or less like so many of these so-called experts claim (hint: those claims are gregariously embellished), we focus on steady, reliable income.
And isn’t that what we all need after that few years — something steadfast in the midst of the chaos?
We approach our trades in a careful, methodical way, and you are NEVER left in the dark. Because every week, we host exclusive members-only webinars, during which you can ask as many questions as you want. But if you can’t attend, your Member Concierge line will be open Monday to Friday, 9:00 a.m. to 5:00 p.m.
Check out how to become a member of Strategic Trader here.
We’ll be back with you on Monday with a market overview for the week ahead — and more trading opportunities.
Sincerely,
John Jagerson & Wade Hansen
Editors, Trading Opportunities