Santa Rally - Valkyrie

Weekly Market Update from the Office of the CIO

Santa Rally

While some doubted if Santa Claus would appear to gift the markets this year, a notable rally was well received Thursday as indices enjoyed a nice rise into the holiday weekend. Opening indications Monday showed positivity ahead of a week of expected volatility and thin trading activity as the Omicron variant spreads across the country. The S&P 500 sits at all-time highs around 4750 this morning, while the 10 year treasury continues to trade in a range between 1.46% and 1.50%.

As investors look ahead to the new year, daily headlines continue to cause adjustments to economic outlooks and growth projections. Early data shows the Omicron variant is more transmissible but less severe than the Delta variant with some researchers optimistically predicting a peak mid-January, and a more pessimistic peak early February. Flight cancellations over the Christmas weekend due to the covid outbreaks among flight crews turned attention to possible travel disruptions in the near term. Conversely, Mastercard reported Sunday holiday retail sales were higher than the pre-covid 2019 season.

Bitcoin finally broke through resistance levels Thursday, rising to the $51k level for the first time since early December. Trading mainly remained over $50k over the weekend and approached the current resistance level of $51.5k Monday morning. Sustained trading at or above this level could bring BTC price looking at $53-54k.

Valkyrie in the Press

The Portfolio Management Team

Steven McClurg, CIO
Bill Cannon, Portfolio Manager
Wes Cowan, Portfolio Manager, Head of Defi
Sean Rooney, Head of Research, Trader
Will McDonough, Vice Chairman, Investment Committee
Leah Wald, CEO, Investment Committee
Shannon Smith, Head of Investor Relations