Newfound Resolve for the New Year

Software, semiconductors (e.g. AMD), and overlapping China plays related to those two sectors are clearly stealing the show on the long side in this first trading session of 2020, so far. Their strength seems to be offsetting the weakness in small caps and biotech, too, with the IWM and IBB XBI all dipping slightly as I write this. Clearly, the news flow this morning benefitted most things China-related (although LK is shaking out some longs here).

Individual China names like BABA, BILI, JD, NTES, are particularly impressive, though we do not want to eschew discipline and chase them higher merely to participate. 

Instead, there are indeed several names not as extended which figure to be ripe on the backs of these hot sectors in the early going. CDNS and SNPS are just two ideas of many which we noted for Members so far. 

Furthermore, a sleeping giant which looks to be waking up is Exxon in energy. Granted, I am talking my long-term book as I recently put on an investing in the name. But we can plainly see today's gap higher on the updated XOM daily chart, below. This gap higher is occurring after a prolonged, potential base bottom. This is an excellent start to 2020 for XOM, and I expect the strength to beget more inflows to start the year.