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Today’s Summary
Tuesday, December 1st, 2020
Indices: US Stocks closed higher to kick off December with the Dow Jones Industrial Average gaining 185 points or 0.63%. The S&P 500 and Nasdaq both closed at all-time highs, rising 1.13% and 1.28%, respectively. The Russell 2000 moved higher by 0.89%.
Sectors: 10 of the 11 sectors closed higher. Communications led, rising 1.83%. Real Estate was the only sector to close lower, slipping 0.25%.
Commodities: Crude Oil futures moved lower by 1.74% to $44.55 per barrel. Gold futures bounced 2.13% to $1,819 per ounce.
Currencies: The US Dollar Index dropped 0.74% to a new multi-year low.
Interest Rates: The 10-year US Treasury yield moved higher to 0.928%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Nasdaq has corrected through time. pic.twitter.com/IdzrEmiaJC
— Strategas (@StrategasRP) December 1, 2020
Today’s Chart of the Day was shared by Strategas Research (@StrategasRP). The Nasdaq broke out to an all-time high today for the first time since September 2nd. Heading into the September peak, the index was up a whopping 75% from the March low. It was starting to go parabolic and it was due for a correction of some sort. As we know, markets can correct in one of two ways – through price (meaning a sharp sell-off) or through time (meaning a sideways consolidation). As Strategas points out, the past three months look like a healthy correction through time. In a comment to The Chart Report, Todd Sohn of Strategas added “The Nasdaq had one of its strongest rallies ever between March and September, If you run a four-minute mile you’re gonna need a breather. It’s also worth noting that as the Nasdaq moved sideways, other beaten-down areas of the market like Small-Caps, Energy, Financials, and International Stocks picked up the slack in a meaningful way.” This sort of rotation is exactly what you want to see if you’re bullish because it demonstrates broadening participation. After a three-month pause could this tech-heavy index be ready to reassert its leadership? Stay tuned!
Quote of the Day
“The whole world is simply nothing more than a flow chart for capital.”
– Paul Tudor Jones
Top Links
November 2020 Asset Class Performance – Bespoke
Bespoke gives a quick breakdown of asset class performance in November.
Investors are Becoming Fearless – Rieben Financial
Greg Rieben shares his thoughts on the current market environment and the increase in bullish sentiment.
How Good is the 200-Day Moving Average – Crossing Wall Street
Eddy Elfenbein examines the effectiveness of the 200-day moving average.
Top 10 Monthly Candles for November 2020 – Cully Charts
Ian Cully takes a look at some noteworthy monthly candlestick charts.
Betting On A Greater Fool: Bitcoin & Gold Edition – All Star Charts
JC Parets weighs-in on Gold and Bitcoin.
Top Tweets
Something for everyone after the record breaking November gains.
S&P 500 gained >10% twice in a calendar year?
1982 and 2020
S&P 500 gains >10% for month and closes at new monthly high?
'80, '87, '91, and '20. Previous 3 times a year later down 4% on average.
— Ryan Detrick, CMT (@RyanDetrick) December 1, 2020
$QQQ breaking out. pic.twitter.com/t1gRvhsGpL
— Larry Tentarelli, Blue Chip Daily (@LMT978) December 1, 2020
$YM, 1h
While Nasdaq is on a roll, the Dow Jones has been struggling to clear 30000. It has been rejected at this resistance 5 times in the last several weeks.
For the markets to continue marching higher in December, Dow Jones needs to finally break out.
December to remember? pic.twitter.com/sObnHL7m0m
— Yuriy Matso (@yuriymatso) December 1, 2020
.@NDR_Research 2021 cycle composite suggests a choppy uptrend into Q3, fall pullback, and weak yearend rally.
The cycle composite is an avg of 1, 4, and 10 yr cycles. Think of it as history's view of what 2021 could look like. 1/3 pic.twitter.com/Hh48lMi3WZ— Ed Clissold (@edclissold) December 1, 2020
$XBI equal-weighted biotech. Breakout, retest, breakout following five-year sideways. pic.twitter.com/VIwjTZ7hc6
— Mark Ungewitter (@mark_ungewitter) December 1, 2020
After half a decade of zero progress, the Equally-weighted Retail Index is now breaking out to new all-time highs. This is not evidence of a bubble. It's pointing to this just being the beginning of a new bull market. pic.twitter.com/XtGr3NJsSF
— J.C. Parets (@allstarcharts) December 1, 2020
Triangle patterns are common among momentum stocks, and internationally, including most recently China's Shanghai Composite Index $SHCOMP which appears on the verge of a breakout #fairleadstrategies pic.twitter.com/cbTuykI281
— Katie Stockton, CMT (@StocktonKatie) December 1, 2020
The #USD Index has dropped to its lowest level since April 2018. pic.twitter.com/1VYOQa98ha
— jeroen blokland (@jsblokland) December 1, 2020
Traders have boosted their short bets on the dollar even further, to a new record. https://t.co/lNECFvyHn7 pic.twitter.com/mXO1rlIWRI
— Lisa Abramowicz (@lisaabramowicz1) December 1, 2020
Sentiment on gold has completely reversed from where it was this summer (when gold was hitting new all time highs). Pessimism at its most extreme since Aug 2018 (when gold was at $1200/oz). $GLD pic.twitter.com/DznC3mNq1F
— Willie Delwiche, CMT, CFA (@WillieDelwiche) December 1, 2020
If stocks in market-leading groups making breakouts from multi-year sideways consolidation ranges to price levels we haven't seen in over 20 years are your thing…
Well then I'd say you better be looking at Micron $MU pic.twitter.com/DtQh8pdE1o
— Grayson Roze (@GraysonRoze) December 1, 2020