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Today’s Summary
Tuesday, December 22nd, 2020
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average fell 201 points or 0.67%. The S&P 500 inched lower by just 0.21%, while the Nasdaq closed higher by 0.51%. Small-Caps outperformed, with the Russell 2000 gaining 0.99%.
Sectors: 2 of the 11 sectors closed higher. Tech led, rising 0.87%. Energy lagged, falling 1.68%.
Commodities: Crude Oil futures dropped 1.98% to $47.02 per barrel. Gold futures fell 0.66% $1,870 per ounce.
Currencies: The US Dollar Index gained 0.63%.
Interest Rates: The 10-year US Treasury yield inched lower to 0.920%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day comes from JP Morgan and was shared in a note by Ben Carlson (@awealthofcs). We’ve all heard the phrase buy low & sell high. With this mindset, it would seem ludicrous to buy stocks when they’re at all-time highs. However, it often pays to buy high & sell higher. This is because markets trend. The light green bars show the average total returns of investing in the S&P 500 on any random day since 1988, while the dark green bars show the average returns of investing only when the S&P 500 is at an all-time high. As you can see, you’d be better off putting your money to work when the S&P 500 is trading at an all-time high. For more on this, check out the full piece here.
Quote of the Day
“Try to learn something about everything and everything about something.”
– Thomas Huxley
Top Links
Santa Claus Rally Begins Thursday – All Star Charts
JC Parets discusses the Santa Claus Rally.
Silver (SLV) Rallies and More of the Same from Gold (GLD) – Bespoke
Bespoke analyzes the recent action in Gold & Silver.
Systematic Investor Podcast ft. Jerry Parker – Top Traders Unplugged
In this podcast, legendary trend follower Jerry Parker weighs-in on some of the major trends across the markets, including Bitcoin, Tesla, and more.
Tony Dwyer’s Outlook for 2021 Market Performance – TD Ameritrade Network
In this clip, Tony Dwyer shares his perspective on the current market environment.
It’s Starting to Warm Up – Cully Charts
Ian Cully examines the outlook for Stocks, Bonds, and Commodities.
Top Tweets
Welcome to the market squeeze. Report to Lumbergh's office immediately. $SPX $SPY pic.twitter.com/pKlSlRgHTo
— Drew Wells, CMT, CIMA® (@DrewTheCharts) December 22, 2020
Energy has been leading sector QTD in S&P 500, with small-cap Energy even stronger … in current quarter, Russell 2000 Energy is outpacing its larger counterpart by most since 1Q2000 @Bloomberg
[Past performance is no guarantee of future results] pic.twitter.com/dZ5qgVYYkr— Liz Ann Sonders (@LizAnnSonders) December 22, 2020
The defensive sectors relative to $SPY w/ their 200-day moving averages. $XLU, $XLRE, $XLP pic.twitter.com/Ijaecv3Ubt
— Dan Russo, CMT (@DanRusso_CMT) December 22, 2020
Discretionary has been, and continues to be one of the best sectors off the lows. The group is almost always leadership from a bottom, and perversely, the worse the headline news for every-day Americans, the better the group tends to do. #knowthedata $XLY pic.twitter.com/dqMqV6bV7r
— RenMac: Renaissance Macro Research (@RenMacLLC) December 22, 2020
$XLY short interest is shooting higher after Tesla joins the consumer discretionary sector — it's the second-biggest holding at 14.7% pic.twitter.com/9mkI8WBmFm
— Katherine Greifeld ? (@kgreifeld) December 22, 2020
What if the Shanghai Composite joins the party? What then?$SSEC $ASHR $FXI $KWEB pic.twitter.com/jtS3oSF3L1
— ATMcharts (@ATMcharts) December 22, 2020
Here's a chart I shared in a recent Thrasher Analytics letter…
Commercial Traders are net-short the yen, pound, euro, & have gone net-long the USD. Sentiment towards USD is in the gutter making the biggest "pain trade" in 2021 likely a stronger dollar. pic.twitter.com/ysuN0vCsaZ
— Andrew Thrasher, CMT (@AndrewThrasher) December 22, 2020
$LIT vs $USD pic.twitter.com/XiuRybRz3G
— Arun S. Chopra CFA CMT? (@FusionptCapital) December 22, 2020
$SQM – Sociedad Quimica y Minera de Chile ADR pic.twitter.com/SfEr7f1rrq
— Kevin Firari (@KevinFirari) December 22, 2020
Just got off of a phone call with a friend.
Him: You ever hear of Jumia?
Me: Nope
Him: It's the Amazon of Africa
Me: *Opens chart*
Him: It's up another dollar in the after-hours
Me: When's it getting added to the S&P 500? pic.twitter.com/nDiVFq1ZzM
— Michael Batnick (@michaelbatnick) December 22, 2020