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Today’s Summary
Tuesday, December 8th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 104 points or 0.35%. The S&P 500 and Nasdaq rose 0.28% and 0.50%, respectively. Small-Caps outperformed with the Russell 2000 closing higher by 1.40%.
Sectors: 6 of the 11 sectors closed higher. Energy led, gaining 1.49%. Real Estate lagged, falling 0.46%.
Commodities: Crude Oil futures inched lower by 0.35% to $45.60 per barrel. Gold futures moved higher by 0.48% to $1,875 per ounce.
Currencies: The US Dollar Index rose 0.16%.
Interest Rates: The 10-year US Treasury yield inched lower to 0.920%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Nasdaq 100 technically overbought for the first time since early September pic.twitter.com/JvonmbYeLM
— Sarah Ponczek (@SarahPonczek) December 8, 2020
Today’s Chart of the Day was shared on Twitter by Sarah Ponczek of Bloomberg (@SarahPonczek). It’s a daily bar chart of the Nasdaq 100 over the past year. The Nasdaq closed higher for the 10th consecutive day today, marking the longest winning streak in a year. As Sarah points out, RSI just reached overbought territory (above 70) for the first time since September. Overbought might sound bearish but it simply means that there is an overwhelming amount of buyers. RSI can stay overbought for long periods of time while price moves higher. Take a look at the period between June and September. RSI didn’t even fall below 50 and the market moved significantly higher. The more important takeaway here is that RSI refuses to reach oversold conditions (below 30). The fact that we haven’t seen RSI reach oversold conditions since March is evidence of a strong and healthy uptrend.
Quote of the Day
“Show me the charts, and I’ll tell you the news.”
– Bernard Baruch
Top Links
While Everyone is Watching Airbnb, Here is What I Will be Watching – Marea Market Musings
Dan Russo weighs-in on the upcoming Airbnb IPO and breaks down a few noteworthy charts in the Travel/Leisure space.
Five Charts that Make the Case for a Bull Market in Commodities – Pring Turner Investment Management
Respected technician, Martin Pring lays out the bull case for Commodities.
Three Bullish Tells for Gold Stocks – StockCharts
David Keller offers his outlook on Gold and Gold Mining Stocks.
Are US Interest Rates Going Higher? – All Star Charts
JC Parets takes a look at US interest rates and the potential implications of higher yields.
3 Big Ideas for 2021 – CNBC
In this clip, Chris Verrone of Strategas Research shares his three top stock picks – $MS, $RIO, and $UBER.
Top Tweets
Bearish divergence between Russell and S&P500 was formed prior to the February top, which was a big warning sign. What do we see now? No divergence at all.
The ongoing rally is much broader (read: healthier) compared to the January-February 2020 one. pic.twitter.com/qvV6w7AwId
— Yuriy Matso (@yuriymatso) December 7, 2020
U.S. equity universe ex. S&P 500 constituents. pic.twitter.com/7sJHxc5hOD
— Strategas (@StrategasRP) December 8, 2020
This is $QQQ relative to $SPY – consolidating at all-time highs. How this resolves will communicate a lot about the overall market going into 2021. pic.twitter.com/VfIJI7T4Mk
— Tarek I. Saab (@FibLines) December 8, 2020
“They” want all the calls and none of the puts, a short story.
5 day average of $CPCE, all time low. pic.twitter.com/anPIUtjm4h
— Steve Deppe, CMT (@SJD10304) December 8, 2020
Just going through some old charts… here's how the great energy relative strength rebound vs. the NDX looks like on a long-term basis: pic.twitter.com/P8jN2SiIma
— Walter Deemer (@WalterDeemer) December 8, 2020
Can't believe I'm about to say this, but Aerospace & Defense could start looking attractive $XAR $SPY pic.twitter.com/PMHYwsOK7f
— Louis (@haumicharts) December 8, 2020
Emerging market equities could take center stage in 2021+. Check out this chart: a well-established secular uptrend interrupted by a long base that appears ready to break out to the upside. The EM long cycle has a perfect rhythm matched by the dollar (shown on a reverse scale). pic.twitter.com/2HSs8GAPCF
— Jurrien Timmer (@TimmerFidelity) December 8, 2020
Record positioning. Copper CFTC non-commercial RECORD LONGS, US Dollar asset managers RECORD SHORTS. Extreme! pic.twitter.com/AgYQANiSsj
— James Brodie CMT (@jamesrbrodie) December 8, 2020
Here's the sort of market that Airbnb and Doordash are going public into… one where recent IPOs have seen their prices more than double this year pic.twitter.com/6Jcjlbn9re
— Dani Burger (@daniburgz) December 8, 2020
$SNOW is the 3rd largest company NOT in $SPX (as of today) and its close to passing $ZM$TSLA $ZM $SNOW
It IPO'd in September of this year. pic.twitter.com/SSrQHlzRQX
— Michael Antonelli (@BullandBaird) December 8, 2020