By Barbara Kollmeyer, MarketWatch
AFP via Getty Images
Another day, another round of stock market records?
That may be a Friday stretch.
The big names that we’ve run a little hot and cold on this year, such as Amazon.com /zigman2/quotes/210331248/composite AMZN -0.70% , were out in front, pulling the Santa-rally sleigh to fresh records on Thursday. (Remember, that traditional year-end rally for stocks that starts in the last 5 trading days in December and the first 2 in January).
Apple /zigman2/quotes/202934861/composite AAPL +0.02% logged its best one-day gain in weeks, and has gained 84% with just three trading days left in 2019, the iPhone maker is looking at its best annual return in 10 years.
Here’s a tweet that shows just how much weight some of these popular companies are swinging around:
Onto our call of the day , which warns individual investors against getting sucked into this Santa Rally, lest they want to pay the piper come January.
“This is the time to be taking profits, not adding new money. Without a doubt, most of the people buying today will come to regret that decision over the next few weeks as prices dip back under these levels,” writes popular financial blogger Jani Ziedins of Cracked Market . While he says that a pullback may not occur until February.
That bit of gloom flies in the face of optimism that’s been swirling around — that stocks are due for some first-quarter lift off. However, as Ziedins reminds us, “institutional money managers are on vacation and not participating in this price action.
“That means whatever happens over the next few days is meaningless and has no bearing on what comes next,” said Ziedins. In fact, it could have the opposite effect. “A good few days now could be stealing profits from January and the higher we go now, the less room we have left next month,” he says.
To be sure, someone has to be trading all those Amazon shares. See the stat below.
After Thursday’s record session, the Dow /zigman2/quotes/210598065/realtime DJIA -0.09% , S&P 500 /zigman2/quotes/210599714/realtime SPX +0.18% are up, but the Nasdaq /zigman2/quotes/210598365/realtime COMP +0.20% is slipping. The dollar /zigman2/quotes/210598269/delayed DXY +0.06% is down. Europe stocks /zigman2/quotes/210599654/delayed XX:SXXP +0.34% are mixed, while Asia markets /zigman2/quotes/211618636/realtime XX:ADOW -0.35% gained, thanks to Wall Street’s rally.