Market started 2022 on a high flying note yesterday, with all major equity indices ended up ~1%. Pre-market futures this morning look to add to those gains. However, we'd like to note that historically, the first 2 days of the new year are still within the Santa Claus rally that we called last year. This means investors should try to book some gains today and be ready to buy lower in the next few days. We are at the highs and given the known uncertainties regarding Federal Reserve's monetary policy, we don't find this price level for the broader market attractive. Keep in mind, the FOMC meeting minutes from January's FOMC meeting will be released in the middle of January.

This morning we'd like to update you with some company specific news:

• Ford (F) finally announced doubling of production capacity for the F-150 Lightning. CEO hinted at this in December. They're going from 80,000 per year to 150,000; they've already had 200,000 pre-orders, which means it's sold for this year. Can Ford Mustang Mach-E and F-150 Lightning become number two EV? Huge portfolio name and one of our best performers.

  • Eli Lilly (LLY) ... portfolio favorite for 2022 ... this one has price target raised $270 to $280 by Wells Fargo... obesity franchise and will soon find out how Biogen (competitor) will do on their controversial Alzheimer's... 

  • Disney (DIS) named top large-cap idea from Wells Fargo... says don’t worry about parks because there is a madness amount of streaming content coming... I think that the key to DIS is what they will do with the metaverse and making you part of the movie... we have strong conviction in this name these exact same reasons.

  • Wolfe downgrades JPMorgan (JPM) to $185 target, analyst worried about expenses. We sold this name late last year, but what the heck? I don’t understand. Didn't mention portfolio names like Wells Fargo (WFC) or Morgan Stanley (MS).

  • Yesterday Wells Fargo (WFC) upgraded by Barclays ... portfolio's attacking name and the cheapest major bank stock (yes, cheaper than Citigroup because we still aren’t sure what’s wrong there) ... price target goes from $50 to $62, cites improvement in regulatory and costs controls. Is this the year the market finally acknowledge Charlie Scharf? 

  • Yesterday Morgan Stanley (MS) PT $110 to $123 at Barclays—Year of the bank? 

  • Apple (AAPL)... Wedbush says iPhone demand looks strong for 2022—China is the major source of strength... but let’s not forget that Apple is not only about phones. 

  • Goldman names AMD (AMD), Marvell (MRVL) top semi ideas but also recommends barbell of Analog Devices (ADI), Micron (MU), ON Semiconductor (ON), Qorvo (QRVO)—more cyclical (latter group have low reasonable multiple). We own AMD, and Skyworks that we own is not on this list.

  •  Goldman says go with Microsoft (MSFT) and Salesforce (CRM) as top picks in software. We own both these names at underweight status, will look to add more later when there are true sell-offs in the market.