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Today’s Summary
Tuesday, December 15th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 338 points or 1.13%. The S&P 500 and Nasdaq rose 1.29% and 1.25%, respectively. Small-Caps outperformed with the Russell 2000 closing up 2.40%.
Sectors: All 11 sectors closed higher. Energy led, gaining 1.97%. Consumer Staples lagged but still inched higher by 0.24%.
Commodities: Crude Oil futures moved higher by 1.34% to $47.62 per barrel. Gold futures rose 1.27% $1,855 per ounce.
Currencies: The US Dollar Index dropped 0.26% hitting a new 2-year low.
Interest Rates: The 10-year US Treasury yield moved higher to 0.913%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
These resolutions are probably going to be pretty important $AAPL $AMZN $QQQ pic.twitter.com/1tv6yhYTrs
— J.C. Parets (@allstarcharts) December 15, 2020
Today’s Chart of the Day was shared on Twitter by JC Parets (@allstarcharts). The chart shows the two most important stocks in the market right now – Apple ($AAPL) and Amazon ($AMZN). These two combined represent more than 20% of the Nasdaq and more than 10% of the S&P 500. These Mega-Cap darlings have spent the last three months consolidating in a sideways fashion as they digest their Summer gains. Luckily for the bulls, Small-Caps and other areas of the market have picked up the slack in a major way, allowing the broader market to continue chugging higher. As we know, consolidations like these typically resolve in the direction of the underlying trend, which in this case is higher. If they break lower instead, it would be a big red flag that a potential trend change is underway. After a long Summer of partying, and three months of a euphoria induced coma, will these two sleeping giants finally wake up? Stay tuned!
Quote of the Day
“Contrary to conventional wisdom, the best stocks rarely sell at low P/Es. Just as the best ballplayers make the highest salaries, the better companies sell at higher P/Es.”
– William O’Neil
Top Links
Decision Time for Mega-Caps – All Star Charts
This one goes along with today’s Chart of the Day. JC Parets explains that several Mega-Cap stocks are at key inflection points.
4 More Years of Dollar Weakness? – LPL Financial Research
The team at LPL Financial Research takes a look at the long-term cycles in the US Dollar Index.
VIX Run Above 20 Tops 200 Days – Bespoke
Bespoke points out that the VIX has been above 20 for 207 consecutive days now.
Tuesday Top Three – Jotting on Charts
Grant Hawkridge shares three noteworthy charts to keep an eye on.
New Highs Look Imminent in Bitcoin – AlphaTrends.net
In this video, Brian Shannon offers his technical perspective on the major Cryptocurrencies.
Top Tweets
Today was the S&P 500's 64th gain of 1% or more this year.
That's the most 1% increases in a year since at least 1950.
— Callie Cox (@callieabost) December 15, 2020
Solid participation today pic.twitter.com/JCvE2DUwWf
— Ian McMillan, CMT (@the_chart_life) December 15, 2020
Russell 2000 has now doubled since hitting its March intraday low. Absolutely incredible. pic.twitter.com/PlQUQJaepH
— Fred Imbert (@foimbert) December 15, 2020
Tech speculation has taken a huge hit (updated from Nov 19).$AAPL Call activity has collapsed to the lowest since Aug 2019 – down 80% from this year's peak.
This is the largest Stock in the market – tightening near the top of a 3-month range… and speculators have moved on. pic.twitter.com/6iwho9BqFC
— Macro Charts (@MacroCharts) December 15, 2020
When it comes to the growth vs. value pot'l rotation, I'm watching the weekly RSI, which still sits above the prior lows.
Leadership from Growth is intact until momentum breaks in my view.$RPG $RPV pic.twitter.com/2sZMHT8seF
— Andrew Thrasher, CMT (@AndrewThrasher) December 15, 2020
$XLRE vs $SPX – a "defensive" group pic.twitter.com/BBVwlsGIha
— Dan Russo, CMT (@DanRusso_CMT) December 15, 2020
Biotech has broken out of a 5-year trading range –
Long history of large bases followed by explosive rallies$IBB $XBI pic.twitter.com/MBjcAadhcW
— Puru Saxena (@saxena_puru) December 15, 2020
However you want to look at it – relative to Bonds, Gold, or any other asset class… the alpha remains in the stock market
Here's the Nasdaq 100 $QQQ vs Gold $GLD ratio trading near fresh all-time highs pic.twitter.com/9OtNHYpByZ
— Steven Strazza (@sstrazza) December 15, 2020
In 2017, Bitcoin was above 18,000 for only 4 days (only 3 closes)
in 2020, Bitcoin has been above 18k on 24 days and has close above that level 22 times
actual supply has been absorbed, now it is just a psychological level which looks like it will be broken very soon$BTC.X pic.twitter.com/vrKufIKPdN
— Brian Shannon, CMT (@alphatrends) December 15, 2020
What does 2020 have in common with 2008, 1994, and 1985? It's one of just four calendar years where the US Dollar Index traded both at a 2-year high and low. https://t.co/VbpeAoCN1F pic.twitter.com/A4drumITrk
— Bespoke (@bespokeinvest) December 15, 2020