to the presidency and control of the Senate has shifted to the Democrats.
But the fabric of the market was changing. Bond yields soared to their highest levels since late March, solar stocks surged on the prospects of clean energy legislation and large-cap growth stocks took a bit of a back seat to smaller- and mid-cap value names, Gordon said.Rising bond yields tend to benefit financial stocks, and small-cap financials appear to be in a particularly strong position, Gordon said.
"If there's more stimulus, more aid coming to small businesses, obviously, that's going to be good," he said. "Small-cap strength is indicative of underlying strength in the economy.", which recently broke through some downtrend resistance at around $49 a share. That resistance should now become support, Gordon said, adding that the stock's momentum trends are also strengthening.
"I'm going to go ahead and add a position right here," he said. "If we break below 48, I'll start to get nervous and then if we do get back below 43, I will cut the entire position."