Catch Up Quick

• TSA screened 1M people on Friday for the 2nd time since the pandemic began

• Elizabeth Holmes reportedly doesn’t want jurors hearing about her luxurious lifestyle as Theranos CEO

• Biden chooses former Fed Chair Janet Yellen to be Treasury secretary

• CA has a new order requiring non-essential activities to stop 10pm - 5am

• Trump grew margins in 78% of U.S. majority-Hispanic counties in election

• The sequel to Marvel’s ‘Black Panther’ will reportedly begin shooting in July

• 5 U.S. agencies told employees they could get vaccine shots in ~8 weeks

• Fender sales boom as guitar playing surges during the pandemic

• The U.S. passed 250K confirmed COVID-19 deaths this week

Thought of the Day

• While many companies that benefit from strong eCommerce activity (Fedex, UPS, Amazon, Jumia, etc) are at all-time highs, huge potential tailwinds still exist

• From both a technical and a market psychology perspective, record valuations actually can be a good thing in certain cases

• For instance, when a stock is purchased and losses follow, studies show that a large amount of investors will sell at break even if losses are recovered, resulting in downward pressure

• This aspect isn’t present to hinder upward price action at all-time highs, because longs haven’t lost any $

• Also, record valuations mean minimal sell stop orders (a trading feature which will prompt a sale via market order if a certain price is reached) are likely to be triggered, which can facilitate further sustained equity gains as well

• Fundamentally, Adobe Analytics forecasted a 33% year over year surge to $189M in online sales during the upcoming holiday season

• This publication also anticipated spending to exceed $3B in a 24 hour time period on 18 days, compared to only 3 days last year outside the window of Thanksgiving weekend

• These figures don’t factor in the potential for another round of stimulus or record high reported U.S. consumer savings rates, both of which support the holiday spending narrative

• On top of it all, many of the names mentioned above have been beefing up logistical infrastructure to reduce friction in the deployment of coronavirus vaccines

The Bottom Lines

• Typically, when psychological, technical and fundamental aspects align, the chance for an unsuccessful trade falls

• While there is still a high amount of systematic risk due to the hardships lent by 2020, equity investors should watch the eCommerce space (public shipping incumbents in particular) given copious strong tailwinds could result in the next couple months!