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Todayโs Summary
Thursday, December 7, 2023
Indices: Nasdaq +1.48% | Russell 2000 +0.87% | S&P 500 +0.80% | Dow +0.17%
Sectors: 8 of the 11 sectors closed higher. Communications led, gaining +2.10%. Energy lagged for the third day, falling –0.68%.
Commodities: Crude Oil futures were flat (-0.06%) and continued to trade at a five-month low of $69.34 per barrel. Gold futures were also flat (-0.07%) at $2,046 per oz.
Currencies: The US Dollar Index droppedย -0.50% to $103.63.
Crypto: Bitcoin fell -1.08% to $43,291. Ethereum jumped +5.59% to an 18-month high of $2,258.
Volatility: The Volatility Index roseย +0.85% to 13.07.
Interest Rates: The US 10-year Treasury yield rose to 4.151%.
Here areย the best charts, articles, and ideas shared on the web today!
Chart of the Day
$DJIA consolidating in a bullish flag?
It's still overbought per the 14-day RSI, but the price action shows no signs of bears gaining traction yet.#NFP on tap tomorrow will play a big role in how we close the week. pic.twitter.com/sIsiwxz7M6
— Matt Weller CFA, CMT (@MWellerFX) December 7, 2023
Todayโs Chart of the Day was shared by Matt Weller (@MWellerFX). The Dow is less than 2% from hitting record highs for the first time in nearly two years. It’s been in a very narrow range all week after rising for five straight weeks. Matt points out that this price action resembles a bull flag. A bull flag is almost like a minor correction through time, in which price digests its prior gains and builds energy for another advance. Matt also points out that RSI has been overbought all week, indicating momentum has remained strong during this four-day consolidation. The spring has been loaded, and it could pop any day now.
Quote of the Day
โGood investing requires a weird combination of patience and aggression. And not many people have it.โ
โ Charlie Munger
Top Links
Some More Good News for Bulls – Carson Group
Ryan Detrick offers some bullish food for thought.
Overbought Conditions Meet Overhead Resistance – LPL Financial Research
Adam Turnquist looks at whether the rally will continue in the coming months.
Trends In Yields: The Fed Isnโt Ready To Cut – Schwab Network
Willie Delwiche shares his thoughts on stocks, rates, the Fed, and more.
December Strategy Session: 3 Key Takeaways – All Star Charts
The team at All Star Charts highlights three charts to watch in the coming weeks.
What Happens After a 20% Up Year in the Stock Market? – A Wealth of Common Sense
Ben Carlson examines how the S&P 500 has historically performed following a +20% year.
Top Tweets
Twitter: "Weak close, engulfing candle"
Market: $ES_F pic.twitter.com/vZzR93mYqG
— Arun S. Chopra CFA CMT๐ง (@FusionptCapital) December 7, 2023
$QQQ looking for its highest close since January 2022 pic.twitter.com/pwhH7jBuEi
— Mike Zaccardi, CFA, CMT ๐ (@MikeZaccardi) December 7, 2023
"TD Ameritrade clients were net sellers of equities in the November IMX period."
Given stocks had a historic rally in November, this could be a clue of what retail clients feel about the rally. pic.twitter.com/xmPM6auP6u
— Ryan Detrick, CMT (@RyanDetrick) December 7, 2023
@AAIISentiment Bulls fell slightly (-1.5 to 47.3) this week whilst Bears gained 7.8% (27.4). Bob Farrell's Sentiment indicator remains firmly in the green (since end of May): pic.twitter.com/9fRYg2Tqev
— Optuma (@Optuma) December 7, 2023
Uh-oh $XLE
That's a new 52-week low for the Energy sector vs. the S&P 500 pic.twitter.com/5YGoNy0AWU
— Austin Harrison, CFA, CMT (@meanstoatrend) December 7, 2023
Growth stocks are outperforming Value stocks in 2023 by 30%, the 2nd biggest outperformance on record with data going back to 1979 (only 2020 was bigger). pic.twitter.com/3oaa398t4c
— Charlie Bilello (@charliebilello) December 7, 2023
A few stats ahead of JOBS DAAAAAAAAAY
๐ผThe S&P has moved an average of 1.1% on jobs days this year, the second-biggest avg move since '09
๐ผSmall caps have outperformed in 5 out of last 6 jobs days
๐ผ The 10-year yield has moved an average of 10 bps on jobs days this year pic.twitter.com/wGjvc9kv2c
— Callie Cox (@callieabost) December 7, 2023
Yields have contracted almost 100bps since the +5% overbought peak in October. They are now oversold (green arrow) and still in a well-defined uptrend. $SPX "easy money" for this tactical move is likely behind us. pic.twitter.com/upleewXWFz
— RenMac: Renaissance Macro Research (@RenMacLLC) December 7, 2023
$TLT is close to flipping positive YTD after a strong November/December. pic.twitter.com/xDgvnnchtN
— Koyfin (@KoyfinCharts) December 7, 2023
$GDX Are Gold Miners about to get their second wind here? ๐โ๏ธ pic.twitter.com/fbDu7l27lk
— TrendSpider (@TrendSpider) December 7, 2023
#Bitcoin is entering Belief / Denial zone. This is when 25-30% pullbacks can start appearing regularly. Make no mistake, the compulsion to sell will inflict itself on every holder.
However, onchain, we can see, based on metrics like illiquid supply/long-term holders etc, thatโฆ pic.twitter.com/QfjIeqG5bI
— Jamie Coutts CMT (@Jamie1Coutts) December 7, 2023
Am I just crazy…? $ETH pic.twitter.com/8MCpPM8TY1
— Steven Strazza (@sstrazza) December 7, 2023