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Today’s Summary
Wednesday, December 16th, 2020
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average inched lower by just 45 points or 0.15%. The S&P 500 and Nasdaq rose 0.18% and 0.50%, respectively. Small-Caps underperformed with the Russell 2000 slipping 0.36%.
Sectors: 5 of the 11 sectors closed higher. Tech led, gaining 0.68%. Utilities lagged, falling 1.16%.
Commodities: Crude Oil futures moved higher by 0.42% to $47.82 per barrel. Gold futures rose 0.20% $1,859 per ounce.
Currencies: The US Dollar Index dropped 0.25% hitting a fresh 2-year low.
Interest Rates: The 10-year US Treasury yield moved higher to 0.921%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Pick a fib, any fib… $BTC
$30k seems a pretty consensus target from a technical perspective as a variety of fib extensions are converging around this level pic.twitter.com/taPAtSlLLo
— Steven Strazza (@sstrazza) December 16, 2020
Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). Bitcoin was the talk of the town today, as it soared to an all-time high above $20,000. Why do we care about all-time highs? Because at all-time highs, there is virtually no overhead supply preventing price from moving significantly higher. When an asset is in unchartered territory like this, Fibonacci extensions are one of the only useful tools for ascertaining potential price targets. This is done by measuring a major decline and multiplying that figure by a key Fibonacci ratio (1.618, 2.618, 4.236, etc…). Of course, most charting platforms have this as a preset tool, so you don’t have to crunch the numbers. Steve used three separate Fibonacci extensions, measured from the 2013-2015 decline, the 2017-2018 decline, and the 2019-2020 decline. All three of these Fibonacci extensions cluster around $30,000. In a comment to The Chart Report, Steve said, “As long as we’re above the former highs, around $19,000, the next logical price target is around $30,000.”
Quote of the Day
“Bitcoin is like anything else: it’s worth what people are willing to pay for it.”
– Stanley Druckenmiller
Top Links
Chart of the Year – LPL Financial Research
The team at LPL Financial Research shares three charts to keep in mind as we wrap up this wild year.
Top/Down Wednesday – Jotting on Charts
Grant Hawkridge takes a top-down approach to identify the strongest stocks within the strongest areas of the market.
Bitcoin Breakout – Bespoke
Bespoke weighs-in on the Bitcoin breakout.
The Next Targets for Bitcoin – All Star Charts
With Bitcoin trading firmly above the 2017 highs, JC Parets takes a look at what could be next.
Wall Street’s Only “Free Lunch” Served Soon – Almanac Trader
Jeff Hirsch discusses the “Free Lunch” strategy, in which the most beaten-down NYSE stocks tend to outperform between December 15th and February 15th.
Top Tweets
$YM, 1h
Dow Jones: 7 rejections at the 30000-30300 level.
Index is basing… pic.twitter.com/SSsfroCEy2
— Yuriy Matso (@yuriymatso) December 16, 2020
90% of stocks in the Russell 3000 are trading above their 200-day moving averages, the most since 2009
For the Russell 2000, it's 89%, the most since 2004 pic.twitter.com/0CijTL683k
— Sarah Ponczek (@SarahPonczek) December 16, 2020
I've been bullish technology for several years and have suggested another 10-years upside. $XLK on the cusp of breaking out its broad consolidation. pic.twitter.com/4BjHSmvtAk
— The Chartist (@thechartist) December 16, 2020
$FNGS pic.twitter.com/etVs3eZg7y
— Ian McMillan, CMT (@the_chart_life) December 16, 2020
#Breadth still looking good. #stocks #StockMarket #NYSE #NASDAQ100 #SPX $QQQ @NapatreeC pic.twitter.com/0vqFsXYyIW
— Mike Moses, CMT (@DominickMike) December 16, 2020
$TAN Solar ETF 1D
Consecutive higher highs and higher lows ? pic.twitter.com/HFpkkouqNv
— Shane C. Murphy (@murphycharts) December 16, 2020
Solid commodity performances over the last 6 months on @KoyfinCharts @TheChartReport
The leader? Coal
(NG is up, but that's just forward curve stuff) #MerryChristmas @Callum_Thomas https://t.co/ur6p3dq7yh pic.twitter.com/oHS6Cx4qQb— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 16, 2020
$DXY completed a small flag yesterday. Tight, short duration flags and pennants are typical of strong trends. We should see 88.50 sooner than later. pic.twitter.com/s9UwO9qAVP
— Ian Culley (@IanCulley) December 16, 2020
BREAKING! #Bitcoin spikes to above USD 20,000! pic.twitter.com/olLH68WW7W
— jeroen blokland (@jsblokland) December 16, 2020
Bitcoin ($BTCUSD) has hit a fresh record high above a very prominent figure (20,000) and yet Google search interest in 'bitcoin' is dramatically lower now than the previous peak back in 2017: pic.twitter.com/3qJYqMB0GM
— John Kicklighter (@JohnKicklighter) December 16, 2020
$AMZN Amazon – after nearly 4 months of lower highs and higher lows, Amazon is trading back where it was in July. Now, finally, the stock is breaking out of the symmetrical triangle created by the redundant price action. pic.twitter.com/7T0SiZtnYo
— Rob Moreno (@rightviewrob) December 16, 2020
Here is Chipotle $CMG making new all-time highs after breaking out of this 3-month base. Needs to hold above $1350. pic.twitter.com/OWEPbPvUWC
— R. Alfonso Depablos (@AlfCharts) December 16, 2020
Burritos are outperforming life-changing, record-breaking global-economy-saving vaccines by +56.22% in 2020.
? Chipotle $CMG +67.32% YTD
? Pfizer $PFE +7.10% YTD pic.twitter.com/sJ52EgpQFG— Grayson Roze (@GraysonRoze) December 16, 2020