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Today’s Summary
Thursday, December 10th, 2020
Indices: US Stocks were a mixed bag in today’s session with the Dow Jones Industrial Average slipping 70 points or 0.23%. The S&P 500 inched lower by just 0.13%, while the Nasdaq rose 0.54%. Small-Caps outperformed with the Russell 2000 gaining 1.08%.
Sectors: 4 of the 11 sectors closed higher. Energy led for the third straight day, gaining 3.07%. Industrials lagged, falling 0.95%.
Commodities: Crude Oil futures moved higher by 2.77% to a multi-month high of $46.78 per barrel. Gold futures were more or less flat, and are currently trading at $1,837 per ounce.
Currencies: The US Dollar Index fell 0.34%.
Interest Rates: The 10-year US Treasury yield moved lower to 0.901%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Emerging Markets vs. S&P 500
New relative highs. pic.twitter.com/9SPLXafKKO
— Adaptiv ™ (@adaptiv) December 10, 2020
Today’s Chart of the Day was shared on Twitter by Adaptiv (@adaptiv). It’s a ratio chart of Emerging Markets vs. the S&P 500 over the past 2.5 years ($EEM/$SPX). Emerging Markets have persistently underperformed the S&P 500 over the past decade. The group never fully recovered from the Financial Crisis, seeing as $EEM hasn’t printed an all-time high since 2007. However, things could get interesting for Emerging Markets in 2021 and beyond. On an absolute basis, $EEM is approaching the 2007 highs. On a relative basis, $EEM has already broken out from a multi-year downtrend and is now breaking out from a large base. In other words, $EEM has begun to outperform the S&P 500 in recent months. In a comment to The Chart Report, David Zarling at Adaptiv said, “Latin American stocks are showing themselves to be the strongest of the Emerging Market groups, along with India. Both those areas are also making new relative highs. It also doesn’t hurt that we continue to see dollar weakness across a majority of foreign currencies. This environment creates a tailwind for this trend to continue.”
Quote of the Day
“Don’t debate people in the media when you can debate them in the marketplace.”
– Naval Ravikant
Top Links
Meet the Nasdaq 100’s Post Election Leaders – Bespoke
Bespoke takes a look at the leaders and laggards within the Nasdaq 100 since Election Day.
David Keller On Markets Pushing Higher, Driven by Energy & Financials – TD Ameritrade Network
In this clip, David Keller weighs the positive/negative aspects of the current market environment.
Global Growth and Higher Rates Distilled into One Chart – Cully Charts
Ian Cully examines the outlook for Commodities and Bonds.
MTB is Ready to Break Resistance and Push Into The Leading Quadrant – StockCharts
Julius de Kempenaer highlights one particular Bank stock that is poised to outperform – M&T Bank, $MTB.
Interest Rates Turn “Golden” – SentimenTrader
Jason Goepfert points out that the 10-year US Treasury yield recently registered a Golden Cross.
Top Tweets
$QQQ was up 11 days in a row & had a +10% move in 20 trading days. $ROKU $TSLA & cloud names had +30-40% moves in the same time.
One red day yesterday & there was alot of concern online.
Can't be brave on green days, get shaken out on red days & expect it to work over time. pic.twitter.com/ki78abErMy
— Larry Tentarelli, Blue Chip Daily (@LMT978) December 10, 2020
Not a single one of the FAAMG stocks is outperforming the Nasdaq 100 since Election Day. https://t.co/sSdd6XpNkL pic.twitter.com/bpacywB2ib
— Bespoke (@bespokeinvest) December 10, 2020
The squeeze is on for $AAPL, $MSFT, $AMZN and $NVDA. Bollinger Bands contracted to their narrowest width in months as they consolidated. AAPL has a breakout working and is the strongest. Others are flat since 12-Nov very tighter ranges the last 4 weeks. #calmbeforestorm pic.twitter.com/oVxd8XZm1s
— Arthur Hill, CMT (@ArthurHill) December 10, 2020
@the_chart_life @AdaptivCharts look at this beautiful multi-month base in the RUT/NDX Ratio. It could certainly rip if it breaks above! pic.twitter.com/v9yRNtluQJ
— Rafa Trade (@rafatrade93) December 10, 2020
The $VIX volatility index has held above the 20 mark for 203 trading days. That is despite the SPX 20-day ATR dropping to ~1% of spot. There is some serious discomfort in these markets beneath the surface pic.twitter.com/Tm0eTx75km
— John Kicklighter (@JohnKicklighter) December 10, 2020
Stocks/Bonds ratio at resistance$SPX $SPY $TLT $VIX pic.twitter.com/zP2CILFZJj
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) December 10, 2020
When I look at the chart of the ten-year yield I think "if this was a stock, would I be bullish or bearish?" Seeing a cup and handle pattern emerging with a break above 1% signaling much higher potential. $TNX $TLT pic.twitter.com/HhQRA7PDMf
— David Keller, CMT (@DKellerCMT) December 10, 2020
Bloomberg spot Commodity Index 6 year high.
(there's no inflation) pic.twitter.com/GA6xdJ1n2a
— Tom Hearden (@followtheh) December 10, 2020
Looking at the performance of a handful of precious and industrial metals over the past 6mo. Copper is on top, even after the wild run Silver went on this summer…and yes, Gold is on the bottom.$HG_F, $SI_F, $GC_F, $PL_F, $PA_F, $SLX, $ALI_F pic.twitter.com/YzTe5vTGMd
— Ian Culley (@IanCulley) December 10, 2020
A lot of eyes on Bitcoin – will this RSI divergence resolve to the downside?$BTCUSD pic.twitter.com/v2VKGGfRfH
— Shane C. Murphy (@murphycharts) December 10, 2020
Despite the bearish news stories (antitrust lawsuits etc.) this chart doesn't look bearish to me. Could buy the breakout above 300 or the dip back to 240/220. $FB pic.twitter.com/Nua5cQb6uz
— Greg Rieben (@gregrieben) December 10, 2020
15 days till Christmas.. breakout pending? pic.twitter.com/72cxm0BMOx
— Grant Hawkridge (@granthawkridge) December 10, 2020