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Today’s Summary
Thursday, December 9th, 2021
Indices: Dow 0.00% | S&P 500 -0.72% | Nasdaq -1.71% | Russell 2000 -2.27%
Sectors: 2 of the 11 sectors closed higher. Consumer Staples led, rising 0.27%. Consumer Discretionary lagged, falling 1.73%.
Commodities: Crude Oil futures dropped 1.96% to $70.94 per barrel. Gold futures fell 0.49% to $1,777 per ounce.
Currencies: The US Dollar Index rose 0.27%.
Interest Rates: The US 10-year Treasury yield fell to 1.50%.
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
One of these is unlike the other $SPX pic.twitter.com/IKZNzTomX6
— Drew Wells, CMT, CIMA® (@DrewTheCharts) December 9, 2021
Today’s Chart of the Day was shared by Drew Wells (@DrewTheCharts). It’s a chart of the S&P 500 Low Volatility Index over the past year, with the S&P 500 below it. The Low Volatility Index tracks the 100 most boring (least volatile) stocks in the S&P 500, including PepsiCo, Verizon, Procter & Gamble, Hershey’s, and more. Drew points out that Low-Volatility stocks are breaking out to all-time highs, while the S&P 500 stalls at resistance. This isn’t the most encouraging development for the bulls. Typically, you want to see the more aggressive High Beta stocks leading and breaking out. Instead, market participants are hiding out in the safer, less volatile names. The tape continues to be two-sided, but this is one area of the market that is currently working.
Quote of the Day
“I’m only rich because I know when I’m wrong. I basically have survived by recognizing my mistakes.”
– George Soros
Top Links
The Charts That Defined 2021 – YCharts
In this video, Josh Brown joins YCharts to break down some of the most noteworthy charts and macro themes from this past year.
Still a Lot of Work to Do to Fix the Breadth Mess – Potomac Fund Management
Dan Russo shares his weekly breadth analysis.
Not Pessimistic But Not Optimistic Either – Bespoke
Bespoke breaks down the results of the latest sentiment surveys.
Fairlead Strategies Idea Generator (PCH) – Fairlead Strategies
Katie Stockton outlines a bullish trade idea on a Timber-related REIT – PotlatchDeltic ($PCH).
Bitcoin vs. Etherium: It’s an Easy Choice – StockCharts.com
Tom Bowley explains that Bitcoin will likely continue underperforming Ethereum.
Top Tweet
$SPX in a 10 point range most of the day, P/C ratio rising throughout the day as last week's bears who became bulls decide whether or not they want to be bears again
— Adam Weingartner (@pittore187) December 9, 2021
Underneath the surface of $SPX there's a mix of bought up, sold down, and relatively flat stocks.
That may be one reason that the index is down only 0.31% vs the NASDAQ 100 (down 0.92%) and Russell 2000 (down 1.74%).
Low volatility $SPX is the only factor I track bid up today. pic.twitter.com/SbTf8qvQkw
— ? ??????? & ?????? ? (@Mayhem4Markets) December 9, 2021
The bulls have seasonality, but the bears have a heck of a bearish momentum divergence in the S&P 500. Another test of 4700 and another lower high in RSI-14 for the index pic.twitter.com/2PMzw3I4Ks
— Scott Brown, CMT (@scottcharts) December 9, 2021
Massive strength in Stocks:
S&P has triggered a 5-Day Thrust – among the Top 2% strongest since 2009 – matching some of the biggest rally initiations in history.
Don't underestimate how far Stocks could still go.
A new rally could just be getting started – follow the Trend. pic.twitter.com/Tb1JurlSgc
— Macro Charts (@MacroCharts) December 9, 2021
Hungry for a sloppy joe sandwich after looking at this mess.$RUT #markets #sloppyjoe pic.twitter.com/dWTnR1LIQ5
— Jim Denholm, CMT (@denholm_jim) December 9, 2021
OK, the small h&s didn't pan out, but the small triple top still might. $NDX pic.twitter.com/ZY4ePe4JLF
— Cowboy (@Xiphos_Trading) December 9, 2021
The divide is growing on where this equity market goes next. There's no consensus in strategists' year-end targets (BBG survey show the second widest divide in a decade). And the amount of investors who are neither bullish nor bearish is the highest in 2 years, per AAII. pic.twitter.com/X5k5dSPpqC
— Dani Burger (@daniburgz) December 9, 2021
A-shares actually improving pic.twitter.com/EysNTJqi82
— Strategas (@StrategasRP) December 9, 2021
The 10-2 yield curve is the flattest since December 2020 (1.52 – .68 = .84) and banks are struggling. $KRE hit a new high in early November, but fell back to its March levels last week and remains an underperformer. A breakout at 1.6 in the 10yr could boost banks. Otherwise… pic.twitter.com/VX7mQ4Rqtq
— Arthur Hill, CMT (@ArthurHill) December 9, 2021
$BTC might make new close low tonight, not a bullish trend … pic.twitter.com/cBw8CJA68O
— The Baguette Investor (@TheBaguetteInv1) December 9, 2021
A close here would be the lowest for Bitcoin since September
Y'all like that chart? pic.twitter.com/Mgw2XCT1NR— Tom Hearden (@followtheh) December 9, 2021
Just saw someone describe crypto as 'Mary Kay for young men' and now I'm dying.
— Tracy Alloway (@tracyalloway) December 6, 2021
You’re all caught up now. Thanks for reading!