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Today’s Summary
Friday, December 17th, 2021
Indices: Dow -1.48% | S&P 500 -1.03% | Nasdaq -0.07% | Russell 2000 +1.00%
Sectors: All 11 sectors closed lower. Real Estate led, but still slipped 0.34%. Financials lagged, falling 2.20%.
Commodities: Crude Oil futures fell 2.79% to $70.14 per barrel. Gold futures were flat and continue to trade around $1,799 per ounce.
Currencies: The US Dollar Index rose 0.70%.
Interest Rates: The US 10-year Treasury yield inched lower to 1.41%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Bullish divergence on two of the more speculative, risk-on investments $IWC $IWM #microcaps #smallcaps
Daily candles here. pic.twitter.com/tHuSGnnOGv
— Jay R. Ligon (@TheeDisruptor) December 17, 2021
Today’s Chart of the Day was shared by Jay Ligon (@TheeDisruptor). It’s a chart of the Micro-Cap ETF, $IWC, and the Russell 2000 ETF, $IWM, over the past five months. Jay points out that Micro-Caps and Small-Caps have both formed bullish momentum divergences. For the uninitiated, a bullish momentum divergence is when price makes a new low, while RSI makes a higher low. In both cases, RSI never reached oversold (below 30) when price made a new low, which is even more encouraging. Small-Caps and Micro-Caps have undergone sharp corrections recently, with max drawdowns of 15% and 12%, respectively. It’s been a rough month for the little guys, but seeing momentum diverge like this is a sign that the bears are running out of steam.
Quote of the Day
“Everyone you will ever meet knows something you don’t.”
– Bill Nye
Top Links
5 Charts You Haven’t Seen – LPL Financial Research
In this quick video, Ryan Detrick and Scott Brown highlight 5 noteworthy charts to keep an eye on.
BIG Charts of the Week – Bespoke
Bespoke shares a few charts that stood out this past week.
Industrials and Office REITs are Shining in the Real Estate Sector – StockCharts.com
Julius de Kempenaer takes a look at the pockets of strength within the Real Estate sector.
Stock Movement Good Indicator of Future Interest Rate Hike – Fox Business
John Gagliardi shares his thoughts on the strength in defensive sectors and the Fed.
Investors Shift to “Risk-Off” Stance – Potomac Fund Management
Dan Russo examines some key risk ratios.
Top Tweets
Weekly $SPX update: a wild week (hawkish Fed, quad witching) results in a mild pullback. Oscillators diverging all over the place but price holding up. pic.twitter.com/eaOTll9EZG
— Michael Turvey (@MikeTurvey_TDA) December 17, 2021
Not the greatest setup as we enter a super-bullish time of year. $SPY $IVV $VOO pic.twitter.com/tGPdhFYr80
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 17, 2021
NASDAQ is having its worst year relative to S&P 500 since 2002 (after outperforming by 27.4% last year)
[Past performance is no guarantee of future results] pic.twitter.com/uMd7th3dAt— Liz Ann Sonders (@LizAnnSonders) December 17, 2021
#RTY_F, 4h
Russell continues to catch a bid at 2140. pic.twitter.com/cS1WeFwEUq
— Yuriy Matso (@yuriymatso) December 17, 2021
$IWM #IWM Will be interesting to see if this divergence finally materializes next week. pic.twitter.com/qy3A0TinEO
— Jake Wujastyk (@Jake__Wujastyk) December 17, 2021
$RUT holding on for dear life. $IWM pic.twitter.com/V4Vmdvsh8k
— The Chartist (@thechartist) December 17, 2021
Growth vs. Value breaking below the 2020 high. Keep an eye on this ratio. $SPLV $SPYG pic.twitter.com/Lbw8uWlXO4
— Andrew Thrasher, CMT (@AndrewThrasher) December 17, 2021
$SOXX : $SPY – Another whipsaw.
Amazing underlying uptrend either way. Uptrend innocent until proven guilty. pic.twitter.com/IBxvhhub0R
— HostileCharts (@HostileCapital) December 17, 2021
Underlying trends within Cons Discretionary & Cons Staples have diverged. On Dec 9, both sectors had 68-69% of stocks trading above their 50-day moving average. Now only 37% are above for Discretionary while 91% of Staples are above. Risk-off. pic.twitter.com/4IiWcaIaTX
— Liz Young (@LizYoungStrat) December 17, 2021
the action in #Bitcoin continues to be lethargic at best..
Daily chart on left and 4 hour on right
Market doesn't care what I want, but it would be nice to see flush down towards 40K pic.twitter.com/zKoo2fta3c
— Brian Shannon, CMT (@alphatrends) December 17, 2021
For much of 2021 bitcoin has felt “boxed in,” not unlike the meme stocks. To me this suggests that – beyond the bullish fundamental drivers (S2F and Metcalfe) – there are still a lot of momentum/leverage shenanigans at play. (THREAD) pic.twitter.com/MDtBcySu9p
— Jurrien Timmer (@TimmerFidelity) December 17, 2021
Twinkies are outperforming the market and breaking out to new highs. $TWNK pic.twitter.com/xKgFdzlx14
— Grayson Roze (@GraysonRoze) December 17, 2021
You’re all caught up now. Thanks for reading!