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Today’s Summary
Monday, December 20th, 2021
Indices: Dow -1.23% | S&P 500 -1.14% | Nasdaq -1.24% | Russell 2000 -1.57%
Sectors: All 11 sectors closed lower. Consumer Staples led, but still fell 0.65%. Energy lagged, dropping 2.50%.
Commodities: Crude Oil futures dropped 2.98% to $68.61 per barrel. Gold futures fell 0.57% $1,795 per ounce.
Currencies: The US Dollar Index slipped 0.17%.
Interest Rates: The US 10-year Treasury yield rose to 1.43%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Post-election years really have to wait for the official Santa Claus Rally period for a bullish turn. $SPY via @EquityClock pic.twitter.com/QY655nCTos
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 20, 2021
Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). December is widely known as one of the strongest months for stocks. However, we have yet to see that seasonal strength play out, with the S&P 500 completely flat since the start of the month. Mike points out that seasonal strength in Post-Election years tends to come at the very end of the month, towards the Santa Claus Rally period. Many people mistake the Santa Claus Rally as occurring the entire month of December, but it’s really the last five trading days in December and the first two trading days in January. If we fail to see strength during this notoriously strong period, it would be a big red flag.
Quote of the Day
“We are choked with news and starved of history.”
– Will Durant
Top Links
Sector Rotation is Alive – But is it Healthy? – Means to a Trend
Austin Harrsion takes a look at the recent changes in sector leadership.
Okay, Okay – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most important technical developments to keep an eye on.
Will Short-Term Weakness Hurt Long-Term Trends – Potomac Fund Management
Dan Russo shares some key takeaways from the current market environment.
Choppy Market Looking for Direction – Momentum Monday
In this video, Howard Lindzon and Ivanhoff highlight the strongest stocks, trends and themes across the markets.
Top Tweets
Three stats.
Read ‘em and take a deep breath.
1️⃣ The S&P has dropped 3.8% in 3 days.
2️⃣ Its biggest selloff this year has been 5.1%
3️⃣ Since 1950, the S&P has averaged about 2-3 drops of 5% or more per year.
This drop feels icky, but it’s the market’s natural rhythm ☀️
— Callie Cox (@callieabost) December 20, 2021
The new trampoline appears to be the 100-day moving average. (cc @callieabost) pic.twitter.com/QnlkG4GUeG
— Eddy Elfenbein (@EddyElfenbein) December 20, 2021
The Nasdaq 100 closes below its September highs. $QQQ $NDX pic.twitter.com/wxrpF91ziJ
— Ian McMillan, CMT (@the_chart_life) December 20, 2021
$380 level is critical in $QQQ. pic.twitter.com/Y43AV4y7mW
— HostileCharts (@HostileCapital) December 20, 2021
#RTY_F, 1d
Make it or break it level on Russell… pic.twitter.com/2WM87NsWb8
— Yuriy Matso (@yuriymatso) December 20, 2021
$ARKK finding its footing here pic.twitter.com/k39NG4EzHH
— Steven Strazza (@sstrazza) December 20, 2021
Today's worst chart. Financials were a top sector, too. $KBE pic.twitter.com/u13uWTlKYc
— Michael Kahn, CMT (@mnkahn) December 20, 2021
Did Staples $XLP just make their first relative higher high? pic.twitter.com/H48o1XUYe4
— Mike Singleton, CFA (@InvictusMacro) December 20, 2021
Low Volatility continues to gain strength $SPX pic.twitter.com/hR8C2cmaNO
— Drew Wells, CMT, CIMA® (@DrewTheCharts) December 20, 2021
The "Santa Claus Rally" isn't supposed to have started yet
Also, don't forget seasonal tendencies are just that TENDENCIES, remember last month when so many ppl reminded us that "Thanksgiving wk is 100% positive" and then it wasn't… pic.twitter.com/HwTHTQaLNE
— Brian Shannon, CMT (@alphatrends) December 20, 2021
You’re all caught up now. Thanks for reading!