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Today’s Summary
Wednesday, December 8th, 2021
Indices: Dow +0.10% | S&P 500 +0.31% | Nasdaq +0.64% | Russell 2000 +0.80%
Sectors: 7 of the 11 sectors closed higher. Health Care led, gaining 0.75%. Financials lagged, falling 0.53%.
Commodities: Crude Oil futures gained 0.43% to $72.36 per barrel. Gold futures were flat and continue to trade at $1,785 per ounce.
Currencies: The US Dollar Index fell 0.35%.
Interest Rates: The US 10-year Treasury yield rose to 1.525%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#BTC Big nothing burger for me still $BTC.X pic.twitter.com/AchII9Z6hT
— Rolando Santos (@TKPTrader) December 8, 2021
Today’s Chart of the Day was shared by Rolando Santos (@TKPTrader). It’s a daily candlestick chart of Bitcoin over the past 16 months. The candlesticks are color-coded according to momentum, as measured by RSI. We highlighted this chart from Rolando three weeks ago, explaining that caution was warranted as long as RSI was below 50. Not much has changed, as Rolando points out that RSI is still well below 50. Bitcoin lives and dies by momentum. As you can see, the most profitable trends occur when RSI is above 50 (white/green candles) which is not the case right now. It’s tough to want to be a buyer here until momentum improves.
Quote of the Day
“Good traders liquidate when they are wrong,
great traders reverse when they are wrong.”
– Jack Schwager
Top Links
What Investors Can Expect of the SPX for the Rest of 2021 – Schaeffer’s Investment Research
Rocky White explains why the S&P 500 could rally into the end of the year.
Are New Highs in the Cards for S&P 500 and NASDAQ 100? – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
Semiconductor Ratio Attempting Bullish Breakout Over the Year 2000 Highs! – See it Market
Chris Kimble points out that Semiconductor stocks are attempting to break out of a 20-year base on a relative basis.
Will We Get a Christmas Rally? | Larry Williams – StockCharts.com
In this video, Larry Williams takes a look at year-end seasonality.
Top Tweets
$SPX $SPY biggest 2-day pump since the discovery of penicillin ? pic.twitter.com/ITssOtVsQz
— ? I. Vodenitcharov CFA CMT (@iv_technicals) December 8, 2021
What selloff? S&P 500 Tech sector has recouped its recent losses and is back to new high
[Past performance is no guarantee of future results] pic.twitter.com/q9afoR3xHI— Liz Ann Sonders (@LizAnnSonders) December 8, 2021
Nice breakout confirm. Check out some of the weaker homies playing catch-up. $ITB pic.twitter.com/DemGyLczlo
— Michael Kahn, CMT (@mnkahn) December 8, 2021
$VIX back down to 20 pic.twitter.com/LEMdlHALCc
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 8, 2021
II bulls in full retreat. After one of the largest 2-week declines in recent decades (from 56.6 to 39.7), bulls are beneath their Oct low and and lowest level since Apr 2020.
Bears up modestly but not showing rampant pessimism. pic.twitter.com/7RZDLg472J
— Willie Delwiche (@WillieDelwiche) December 8, 2021
Despite the last few days finishing green, I think there's a high probability that the value line index resolves this consolidation down… pic.twitter.com/FKJFICEbNV
— Mike Singleton, CFA (@InvictusMacro) December 8, 2021
On the positive side, in the fixed income world we have a failed breakdown in this "risk-on/risk-off" relationship… pic.twitter.com/HEP8AYJIJI
— Ian McMillan, CMT (@the_chart_life) December 8, 2021
$TLT jumps back into the creek pic.twitter.com/DqH04mIxhh
— Mark Ungewitter (@mark_ungewitter) December 8, 2021
Looks like a false breakout to me. Follow on https://t.co/zEt2coBM7D pic.twitter.com/oPhEwP9v09
— Martin Pring (@martin_pring) December 8, 2021
Steel. So far a successful test…$SLX pic.twitter.com/FS8xuw5bD0
— Greg Rieben (@gregrieben) December 8, 2021
$AAPL vs $SPX (Weekly)
On track for new closing highs on a relative basis pic.twitter.com/2a7S8i76yY— Pratyush Tulsian (@PrattyCharts) December 8, 2021
Here's a fun little tidbit:
Based on the history of the S&P500 you are more likely, in a single calendar year, to have a gain of 20% or more than any negative return at all.
**past performance no guarantee of future results**
— Michael Antonelli (@BullandBaird) December 8, 2021
You’re all caught up now. Thanks for reading!