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Today’s Summary
Friday, December 11th, 2020
Indices: US Stocks were mostly lower in today’s session, but the Dow Jones Industrial Average managed to inch higher by just 47 points or 0.16%. The S&P 500 and Nasdaq slipped 0.13% and 0.23%, respectively. Small-Caps underperformed, with the Russell 2000 falling 0.57%.
Sectors: 5 of the 11 sectors closed higher. Communications led, rising 0.60%. Energy lagged after leading for three straight days, dropping 1.15%.
Commodities: Crude Oil futures moved slightly lower by 0.45% to $46.57 per barrel. Gold futures rose 0.34% $1,844 per ounce.
Currencies: The US Dollar Index gained 0.18%.
Interest Rates: The 10-year US Treasury yield inched higher to 0.906%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
December is usually a strong month for stocks, but Santa doesn't show until the second half of the month. pic.twitter.com/MLcAMnUZp9
— Ryan Detrick, CMT (@RyanDetrick) December 11, 2020
Today’s Chart of the Day was shared on Twitter by Ryan Detrick of LPL Financial Research (@RyanDetrick). On average, December has been the second-best month for the S&P 500 over the past 70 years. Ryan points out that the seasonal tailwind doesn’t really pick up until the second half of the month. As we know, there’s no such thing as a sure thing on Wall Street, and the S&P 500 doesn’t always follow its seasonal trend. Just take a look at what happened in December 2018! But with the S&P 500 trading firmly above its February and September peaks, it’s not crazy to think that Santa Claus will come to town this year. The term “Santa Claus Rally” gets thrown around a lot, but it’s often misunderstood. This phenomenon, popularized by The Stock Traders Almanac, strictly refers to the last five trading days in December and the first two trading days in January, in which the S&P 500 has enjoyed an average gain of 1.3%. In fact, it will be big a red flag if we don’t get some sort of Santa Claus Rally during that seven-day stretch. As Yale Hirsch once famously said, “If Santa Claus should fail to call; bears may come to Broad & Wall.”
Quote of the Day
“Winners focus on winning. Losers focus on winners.”
– Anonymous
Top Links
4 Signs of a Market Correction – All Star Charts
JC Parets explains that we’re not currently seeing any of the tell-tale signs of a stock market top.
IPO Craze – Bespoke
Bespoke illustrates how hot the IPO market has been recently.
Where Do We (Investors) Stand? – David Cox
In this quick video, David Cox highlights some noteworthy technical developments.
Looking Back on 2020, and Looking Ahead – Bull Markets.co
Troy Bombardia weighs some of the bullish/bearish aspects of the current market environment.
Copper’s Rally Likely to Continue as Historically Bullish Season Begins – Almanac Trader
Seasonality expert, Jeff Hirsch points out that we’re entering a bullish time of year for Copper futures.
Top Tweets
Market technicals remain solid. While the #SPX continues to advance out of its triangle, the percentage of #stocks trading above their 50-day moving average remains healthy at around 85%. pic.twitter.com/pJY7lwvNc9
— Jurrien Timmer (@TimmerFidelity) December 11, 2020
The Russell 2000 gained for a SIXTH straight week and is beating the S&P 500 year-to-date
h/t @DRBCurtis pic.twitter.com/Zw0v8FkMhr
— Katherine Greifeld ? (@kgreifeld) December 11, 2020
If we hold ~$297, does the 2.618 Fib extension serve as our next target for the Nasdaq 100? pic.twitter.com/pub0sb3Ff2
— Ian McMillan, CMT (@the_chart_life) December 11, 2020
$QQQ
Higher highs, higher lows & rising MAs is an uptrend –When the market rolls over, which they all do at some point, price will make lower highs & lows & key MAs will break down.
Until then, the trend is simple enough to trade with & beats daily failed top calls. pic.twitter.com/hv4ix1JzRo
— Larry Tentarelli, Blue Chip Daily (@LMT978) December 11, 2020
FAAMG stocks never made a higher-high above the September peak, underperforming for the last 3.5 months. pic.twitter.com/dBQTat1qMl
— Andrew Thrasher, CMT (@AndrewThrasher) December 11, 2020
Energy (black line) has beaten the S&P 500 (blue line) so badly over the last month that the index looks like a flat line. (This come after a long period of Energy severely underperforming.) pic.twitter.com/nuMDY9VRjI
— Eddy Elfenbein (@EddyElfenbein) December 11, 2020
#Commodities remain in 'rally' mode, with #ironore and #nickel up more than 4% today. Industrial metals as a group are up 50% since March. (Chart Iron ore) pic.twitter.com/byVY6FjLkv
— jeroen blokland (@jsblokland) December 11, 2020
copper specs aggressively long…$COPX $HG_H pic.twitter.com/x7vrQh7TnU
— J4 (@J4_doji) December 11, 2020
Activision Blizzard testing again the 2018 highs, which also represents the 685.4% Fibonacci extension of the 2008-2010 decline. Notice how well these fibo levels have been working in the past decade. So, if $ATVI is above 85, a long makes perfect sense with a target of 130. pic.twitter.com/oAuSZu4NzB
— R. Alfonso Depablos (@AlfCharts) December 11, 2020
Activision Blizzard testing again the 2018 highs, which also represents the 685.4% Fibonacci extension of the 2008-2010 decline. Notice how well these fibo levels have been working in the past decade. So, if $ATVI is above 85, a long makes perfect sense with a target of 130. pic.twitter.com/oAuSZu4NzB
— R. Alfonso Depablos (@AlfCharts) December 11, 2020
Congrats sailor, you've (almost) made it through 2020!
Here's a crazy chart showing just how wild this year was.
2010-2019: 58 days when the S&P 500 moved 3% or more
2020 YTD: 45 days of moves 3% or more pic.twitter.com/2dVn1DDQjm— Callie Cox (@callieabost) December 11, 2020