U.S. Global Jets ETF (JETS) turned sharply lower in the mid-20s in November, more than two weeks before Omicron hit the newswires. The fund posted a 13-month low at 19.52 on Dec. 20th and bounced into Christmas, reversing at 50-day moving average resistance last week. A third trip into this critical level appears likely, raising odds for a breakdown that stretches into July 2020 support between 15 and 16. That could mark a low-risk buying opportunity, with the fast-moving infection generating massive herd immunity.
The January Effect will be in full swing this week, potentially lifting a basket of 2021’s biggest losers, especially at the beginning of this annual phenomenon. Dow component Walt Disney Company (DIS) looks like a great play in this regard, dropping to the bottom of the Dow performance list with a 15% annual loss. If you’re looking for even more risk, take a shot at fallen angel Block Inc. (SQ), formerly known as Square, which has punished shareholders with a 26% annual loss and swift decline to a 14-month low.
Walgreens Boots Alliance (WBA) kicks off January earnings in Thursday’s pre-market, reporting Q1 2022 results. The pharmacy chain is expected to report a profit of $1.32 per-share on a $32.7 billion in revenue. The stock ended 2021 on a high note, attracting strong foot traffic as a provider of COVID-19 vaccines and boosters. However, Morgan Stanley downgraded WBA just two weeks ago, projecting zero earnings-per-share (EPS) growth through 2023.
Bitcoin cycles are slowly turning in favor of buyers, raising odds for an oversold bounce that could generate intermediate profits. The crypto king has been holding support at 46,000 for five weeks, right at the .786 Fibonacci retracement of the June into November uptick. Two bounces have faded above 51,000, carving a rectangular pattern that could yield a breakout and short squeeze toward 58,000. However, aggressive profit-taking is advised because longer-term sell cycles remain in place, threatening another leg down after sellers get flushed out of the system.
Banking stocks have performed admirably in 2021 and should gain additional ground in 2022. The best play in this group is north of the border in Canada, where The Bank of Nova Scotia (BNS) has posted a 33% annual return. Better yet, the $62.5 billion financial institution just completed a 7-year cup and handle breakout above resistance in the upper 60s, forecasting a long-term price target above 100. And that’s not all because the stock also pays an outstanding 4.38% dividend yield.
Catch up on the latest price action with our new ETF performance breakdown.
Disclosure: the author held no positions in aforementioned securities at the time of publication.