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Today’s Summary
Monday, December 13th, 2021
Indices: Dow –0.89% | S&P 500 -0.91% | Nasdaq -1.39% | Russell 2000 -1.42%
Sectors: 4 of the 11 sectors closed higher. Real Estate led, gaining 1.34%. Energy lagged, dropping 2.78%.
Commodities: Crude Oil futures slipped 0.53% to $71.29 per barrel. Gold futures gained 0.20% to $1,788 per ounce.
Currencies: The US Dollar Index rose 0.33%.
Interest Rates: The US 10-year Treasury yield dropped to 1.42%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
https://twitter.com/mtimpane/status/1470505657447202825
Today’s Chart of the Day was shared by Matthew Timpane (@mtimpane). The chart shows the Utilities sector (black) and the Consumer Staples sector (blue) over the past two years. These two defensive sectors have been the strongest areas of the market over the past two weeks. Staples broke out to all-time highs last week, while Utilities are attempting to do the same. Real Estate and Health Care (the other two defensive sectors) have also been firming up recently. Investors often flock to defensive sectors during times of economic stress or uncertainty. The idea is that even in hard economic times people will continue to consume the goods and services that these companies offer. Seeing this clear shift from offense to defense sets a risk-off tone to the broader market as it represents a flight to safety.
Quote of the Day
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”
– Charles Darwin
Top Links
Narrowing Leadership – Andrew Thrasher
Andrew Thrasher examines the deterioration in market breadth.
“Feels a Lot Like the 2000 Bubble and May Not be Over Yet” – All Star Charts
JC Parets explains that Tech is alive and well despite the narrative stating otherwise.
What is a Healthy Market? – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most important technical developments across the markets.
Berkshire’s Apple (AAPL) Weighting Swells to Nearly 50% – Bespoke
Bespoke points out that Apple represents nearly half of Berkshire Hathaway.
TIME Magazine’s Person of the Year Has Historically Been a Great Contrarian Indicator – Jim Bianco
Here’s an interesting thread from Jim Bianco about Time Magazine’s Person of the Year award being a contrarian indicator.
Top Tweets
#ES_F, 1d
S&P500 got rejected at 4700 at least 13 times… pic.twitter.com/u9jZ2HREge
— Yuriy Matso (@yuriymatso) December 13, 2021
Big weekly gains are a good sign for the bulls.
The S&P 500 gained >3.8% last week.
The previous 25 times it did that (back to Mar '09), 3 months later it was higher 23 times.
Avg return of 7.0% versus avg 3 month return of 2.1%.
Yet another clue this bull market isn't done. pic.twitter.com/AFJTKR0fu6
— Ryan Detrick, CMT (@RyanDetrick) December 13, 2021
A take that's preheating in the oven:
What if the biggest stocks are basically like treasuries when all of the other growth stuff gets crushed now?
What if the biggest stocks are the new flight to safety? pic.twitter.com/ULoETflS5V
— Ben Carlson (@awealthofcs) December 13, 2021
The average Nasdaq Composite stock is 39% below its 52-week high even though the index is just 3.6% below its 52-week high. pic.twitter.com/omCIMLjInz
— Bespoke (@bespokeinvest) December 13, 2021
I agree breadth doesn't look the greatest, but I tend not to focus so much on $COMPQ. For me $QQQ breadth is a much better measure… the divergence isn't pretty but would only really get worried if % > 200MA drops below 50. pic.twitter.com/7HDp0l14rK
— Rolando Santos (@TKPTrader) December 13, 2021
Utilities peaking over the fence — $XLU is less than a dollar away from joining Staples and Real Estate at fresh ATHs as defensive stocks continue to lead pic.twitter.com/5ElmnBgijp
— Steven Strazza (@sstrazza) December 13, 2021
More signs of defensive strength. Consumer staples have not only broken out to new highs, but need just 1% more of outperformance to get above the 200-dma vs. the S&P 500 for the first time since April 2020. pic.twitter.com/B0FhvCCf7Q
— Scott Brown, CMT (@scottcharts) December 13, 2021
I love how Twinkies are a Consumer Staples stock. In other words, no matter how bad the economy gets, people will still buy their Twinkies, like Laundry Detergent and Dishwasher Soap $TWNK $XLP pic.twitter.com/zPUbAGCLFc
— J.C. Parets (@allstarcharts) December 13, 2021
The Bloomberg Commodity Index digs in at the 40WMA, below the 10WMA as the 14-week RSI tries to hold on. But that relative trend is a mess. pic.twitter.com/bmUQraYRQh
— Dan Russo, CMT (@DanRusso_CMT) December 13, 2021
Will the tight consolidation in $DXY resolve in the direction of the underlying trend, or will it roll over in favor of global risk assets? pic.twitter.com/vDPnDxJg9r
— Ian Culley (@IanCulley) December 13, 2021
Bitcoin takes out its 200-dma pic.twitter.com/vE9OU649Br
— Katie Greifeld ? (@kgreifeld) December 13, 2021
The last time a CEO of a publicly traded company was TIME's person of the year was Jeff Bezos in 1999. Zuckerberg was POY in 2010 but $FB wasn't public yet. pic.twitter.com/Bd6bIPRs8H
— Andrew Thrasher, CMT (@AndrewThrasher) December 13, 2021
You’re all caught up now. Thanks for reading!