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Today’s Summary
Friday, December 13th, 2019
Indices: US stocks were little changed in today’s session with the Dow Jones changing just 3 points or 0.01%. The S&P 500 was also flat, while the Nasdaq inched higher by 0.20%. The Russell 2000 was the weakest of the major averages, closing lower by 0.42%.
Sectors: Utilities led, gaining 0.78%. Materials lagged, falling 0.77%.
Commodities: Crude Oil futures moved higher by 1.50% to $60.07 per barrel. Gold futures gained 0.60% to $1,481 per ounce.
Currencies: The US Dollar Index fell 0.23%.
Interest Rates: The US 10-year Treasury Yield moved lower to 1.824%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Chinese Tech ETF: Posted without comment of prejudice pic.twitter.com/nHEwRrco8S
— RenMac: Renaissance Macro Research (@RenMacLLC) December 13, 2019
Today’s Chart of the Day was shared on Twitter by Renaissance Macro Research (@RenMacLLC). It’s a daily candlestick chart of the Chinese Technology ETF, $CQQQ. Renaissance highlights the fact that the ETF is testing a key resistance level. They remind us that it’s important to remain objective when observing these support/resistance levels. It’s better to be patient and wait for price to confirm a breakout, rather than trying to predict which way price will resolve. These are levels of polarity, where if price trades above it, the risk is to the upside. On the other hand, if price fails to break out, the risk is to the downside. Eventually, you’ll get confirmation but until then, remain unbiased!
Quote of the Day
Top Links
Weekend Stock Market Recap and Sector Analysis – The Trade Risk
Evan Medeiros Sums up this week’s price action and points to a few charts to keep an eye on next week.
High Low Friday 12/13/19 – Dana Lyons
Dana Lyons highlight some notable stocks and indexes that are trading at their highs/lows.
Are You Following the Trend or Waiting for Perfection? – StockCharts.com
Arthur Hill breaks down a chart of $SPY from the perspective of a trend follower.
Euro Breakout in Play? Gold Bugs Sue Hope So – Kimble Charting Solutions
Chris Kimble points out that the Euro is at a key inflection point and says that Gold bulls should hope that the Euro goes higher.
The Chip Rip Has Just Begun, Options Trader Says – CNBC
Christian Fromhertz of Tribecca Trade Group explains why he’s bullish on Semiconductor stocks and lays out a bullish options trade on $AMD.
Top 10 Tweets
Wall Street Week…
S&P 500: All-Time High
Dow: All-Time High
Nasdaq: All-Time High pic.twitter.com/hf1U6FaxIl— Charlie Bilello (@charliebilello) December 13, 2019
A few charts that are critical right now:
MSCI AWI Index (emerging + developed markets) & NYSE Index broke out above Jan 2018 highs
Surge in NYSE New Highs – New Lows
Surge in financial sector members at 52 week highsAlmost always bullish for equities 6-12 months later pic.twitter.com/wD10cuBp8Y
— SentimenTrader (@sentimentrader) December 13, 2019
Want to make a bear angry?
Point out the NYSE has gone nowhere for nearly two years, but finally made new highs yesterday.
Future returns when it goes at least a year without new all-time highs?
Since 1980, higher 6 months later 7 of 8 and higher 12 months later every time. pic.twitter.com/toD4dQb6E7
— Ryan Detrick, CMT (@RyanDetrick) December 13, 2019
Textbook rally in the $SPX. Basically consolidated since start of 2018. But, casually broke out of its resistance level in Nov. Tested old resistance, which is now support, on Dec 3 and is solidifying the uptrend now. Good stuff. I'm staying #bullish on this #market. #trends pic.twitter.com/s2kr9XpqY0
— Chad Shoop, CMT (@ChadShoopGuru) December 13, 2019
If you want to learn about trading and making real money (not just pattern trading) study every area bears tried to sell this market since the Dec low.
Younger traders you will see 3-5 of these opportunities every decade (more if you cross asset classes + if single stock)$SPX pic.twitter.com/oRXPvLRMNI
— Arun S. Chopra CFA CMT? (@FusionptCapital) December 13, 2019
$XLK makes its 38th new 52 Week high of the year and is now +44% YTD! It's now the only sector significantly outperforming $SPX (+26% YTD). Only $XLF is outperforming by > 1%: pic.twitter.com/O71vwb9yhz
— Optuma (@Optuma) December 13, 2019
$XLK makes its 38th new 52 Week high of the year and is now +44% YTD! It's now the only sector significantly outperforming $SPX (+26% YTD). Only $XLF is outperforming by > 1%: pic.twitter.com/O71vwb9yhz
— Optuma (@Optuma) December 13, 2019
Junk bonds had a big rally yesterday, sending spreads to the tightest since October 2018. pic.twitter.com/gMGnljaaXd
— Lisa Abramowicz (@lisaabramowicz1) December 13, 2019
Important to be patient here with $USD. #Dollar has traded in this channel for 18 mos and is sitting at rising support which has been tested 4 times in that period. RSI not oversold
Bears should wait for break. Bulls should look for confirmation that channel holds. $DXY pic.twitter.com/hFz3yFmiEm
— Tarek I. Saab (@FibLines) December 13, 2019
Industrial Renaissance stocks are another good looking group and might be a unique way to play strength in Industrials.
There are some killer setups in there $AIRR $XLI $ROLL $ACA $TTEK pic.twitter.com/g3tYcQlCjc
— Louis (@haumicharts) December 13, 2019
We’re not here to be right, we’re here to make money. Offense sells tickets but defense wins Championships.
My friend sent me this today. I thought it was funny, only because it’s true. pic.twitter.com/ZerYPz7qUM
— J.C. Parets (@allstarcharts) December 13, 2019
You’re all caught up now. Thanks for reading!