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Today’s Summary
Tuesday, December 17th, 2019
Indices: US stocks were slightly higher in today’s session with the Dow Jones Industrial Average inching up 29 points or 0.10%. The S&P 500 and Nasdaq moved just 0.03% and 0.10%, respectively. The Russell 2000 was the strongest of the major averages, gaining 0.39%.
Sectors: Consumer Discretionary led, gaining 0.44%. Real Estate lagged, falling 1.08%.
Commodities: Crude Oil futures moved higher by 0.86% to $60.80 per barrel. Gold futures were flat and continue to trade around $1,480 per ounce.
Currencies: The US Dollar Index rose 0.21%.
Interest Rates: The US 10-year Treasury yield held steady at 1.88%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a blog post by Chris Kimble (@KimbleCharting). It’s a weekly bar chart of the Mid-Cap ETF, $MDY, over the past decade. In the blog post, Chris points out that Mid-Caps are knocking on the door of all-time highs. Chris begins by establishing that the primary trend is higher, and he shows that the ETF has spent the majority of the past 7-years inside a rising channel. He goes on to explain that $MDY peaked last September, followed by a swift 20% correction at the end of 2018, which brought price down to the bottom of the rising channel. $MDY found support at the rising channel and went on to rally about 30% over the next 12-months, to where it sits now, testing record highs. Large-Caps ($SPX) have already surpassed last year’s peak and have been printing all-time highs for weeks now. It would be bullish for the broader market to see Mid-Caps, and eventually, Small-Caps follow suit.
Quote of the Day
“I want the whole of Europe to have one currency; it will make trading much easier.”
Top Links
European Stocks Record Breakout – Bespoke
Bespoke examines the recent breakout in the Euro Stoxx 600 index, and how European stocks have performed relative to US stocks.
The Rotation Back Into Amazon Has Begun – All Star Charts
JC Parets of All Star Charts explains that Amazon ($AMZN) is beginning to show signs of life after doing a whole lot of nothing for the past 18-months.
Evidence of a Broad Swing in Global Stock Momentum – Ciovacco Capital Management
Chris Ciovacco uses long-term moving averages to show that the S&P 500 looks nothing like it did in 2007-2009.
Is it Time for Santa? – LPL Financial Research
In this short note, the team at LPL Financial Research points out that while December is often regarded as the best month for stocks, most of the gains tend to come later in the month.
The Key Macro & Equity Themes of the Last Decade in Ten Charts – Koyfin
Rob Koyfman shares ten charts that provide an excellent visual summary of the past decade.
Top 10 Tweets
The S&P 500 has posted four consecutive monthly gains to end the year just four times in the past 21 years: 2017, 2013, 2006 and 2004.
…and we’re on track for the fifth ?
— Callie Cox (@callieabost) December 17, 2019
Value Line Geometric Index keeps making progress (though it remains a laggard) while the % of $SPX stocks above their 200-day avg is at its highest level since early 2018. pic.twitter.com/xpeFkFYvCG
— Willie Delwiche (@WillieDelwiche) December 16, 2019
Market certainly strong across the board. But I have note that almost 80% of $SPX names are above their 200-day moving average. That has happened three times in the last five years, and every time the market has pulled back. $SPY pic.twitter.com/ZWOXBLX00a
— David Keller, CMT (@DKellerCMT) December 17, 2019
$VIX is not a traded security but this recent gap fill is a thing of beauty. pic.twitter.com/IAnoL4L9Zx
— Andrew Thrasher, CMT (@AndrewThrasher) December 17, 2019
The dollar has reached a key juncture: pic.twitter.com/B1zGYpVL65
— Walter Deemer (@WalterDeemer) December 17, 2019
Add another index to the list… Europe Consumer Discretionary is breaking out after trading sideways since early 2015. Chart via @verrone_chris @Todd_Sohn pic.twitter.com/Wz0rT3YwqP
— Strategas (@StrategasRP) December 17, 2019
Improvement is occurring in both versions of the CRB Index pic.twitter.com/eQcQ6bX5lI
— Wolfe Daily Howl (@WolfeDailyHowl) December 17, 2019
Recessions happen when companies need money and don't have access to it. This ain't that https://t.co/uErPD7sVy2
— Tony Dwyer (@dwyerstrategy) December 17, 2019
If $TSLA breaks out here, a move to $520 would be a good target. pic.twitter.com/J8iMJ9ByBK
— Merry Tex-mas ? (@theycallmetex) December 17, 2019
Gulp.$BRK pic.twitter.com/ciS78cP8Ha
— J4 (@J4_fibo) December 16, 2019
You’re all caught up now. Thanks for reading!