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Today’s Summary
Thursday, December 26th, 2019
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 106 points or 0.37%. The Nasdaq moved higher by 0.78% and closed above 9,000 for the first time ever. The S&P 500 gained 0.51%, while the Russell 2000 slipped just 0.06%.
Sectors: Consumer Discretionary led, gaining 1.22%. Health Care lagged, inching lower by just 0.07%.
Commodities: Crude Oil futures rose 1.05% to $61.75 per barrel. Gold futures gained 0.74% to $1,516 per ounce.
Currencies: The US Dollar Index slipped 0.10%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.894%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Somewhere, the Hunt Brothers are smiling.. pic.twitter.com/CwtgfUcXtj
— Walter Deemer (@WalterDeemer) December 26, 2019
Today’s Chart of the Day was shared on Twitter by Walter Deemer (@WalterDeemer). It’s a daily bar chart of the Silver ETF, $SLV. The ETF closed higher for the sixth consecutive session today. During those six sessions, $SLV has gained over 5%. Precious metals bulls are embracing Silver’s rally because the metal has recently been showing strength relative to the Gold. Metals traders watch the Silver/Gold ratio carefully to gauge the overall risk appetitie for precious metals. When Silver is outperforming Gold, it’s bullish for precious metals as a whole and vice versa. Walter jokes that “somewhere the Hunt brothers are smiling.” He’s referring to the two billionaire brothers, Nelson and Herbert Hunt, who famously tried to corner the Silver market in the early ’80s, but were unsuccessful due to government intervention. For more on the Hunt brothers and “Silver Thursday” check out this article from Investopedia.
Quote of the Day
“Three dirty words of finance are leverage, derivatives, and shorting. Of course, we think in many cases those are pretty useful things! But you have to know what you’re getting into.”
– Cliff Asness (Hedge Fund Manager)
Top Links
Thoughts for the 2020 Stock, Commodities Markets – Market Gauge
Michele Schneider shares a few things that she’s watching going into the new year in both the stock market and the commodities market.
Hi Yo Silver Miners, Bullish Breakout Is In Play! – Kimble Charting Solutions
As we pointed out in today’s Chart of the Day, Silver is breaking out. In this short blog post, Chris Kimble shows that the Silver Mining ETF, $SIL is also beginning to show signs of life.
Lots of Winners in 2019 – LPL Financial Research
In this note, the team at LPL discusses the fact that 2019 was a good year for several different asset classes, a sharp contrast to 2018.
Nasdaq Shorts Continue To Cover, Short Interest Remains Elevated – Hedgopia
Hedgopia explains that bears continue to try and short the Nasdaq despite its recent strength.
This Energy Stock Is Turning Around – StockCharts.com
Using a Relative Rotation Graph, Julius de Kempenaer shows that the Energy sector is beginning to improve. He then outlines one energy stock in particular that he thinks is poised to move higher, National Oilwell Varco ( $NOV).
Top 10 Tweets
The Nasdaq could close at 10 consecutive new highs today.
This is quite rare and returns 6 months out can see modest weakness.
The good news? A year later it has been higher every single time (6 for 6). pic.twitter.com/NlGWHl6adE
— Ryan Detrick, CMT (@RyanDetrick) December 26, 2019
Nasdaq hits 9,000 for the first time. pic.twitter.com/Lhu4h2IeG2
— Charlie Bilello (@charliebilello) December 26, 2019
The melt-up in risk assets that many suspected could happen after 2019’s potent combo of strong gains, bearish sentiment and disappearing liquidity at year end—which is typical—is happening in what is turning out to be a mirror image of last year’s Q4 swoon. pic.twitter.com/bcXhIiC7g3
— Jurrien Timmer (@TimmerFidelity) December 26, 2019
Here we are. pic.twitter.com/bcNv1Wmbfi
— Michael Santoli (@michaelsantoli) December 26, 2019
here's an interesting look at Mid-caps relative to Large-caps $MDY $SPY pic.twitter.com/hI0JKfYxkI
— J.C. Parets (@allstarcharts) December 26, 2019
$VNQ sharply underperforming $SPY since early Oct pic.twitter.com/JvP167TBKb
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 26, 2019
Long term view of $XLU relative & absolute with rates, Sure doesn't look stretched to the upside on a relative basis $TNX $SPY $SPX pic.twitter.com/PSaVAJAWOO
— Drew Wells, CIMA®, CRPC® (@DrewTheCharts) December 26, 2019
Upside follow-through in $GOLD after bouncing off Fibonacci support last month. $GLD overbought with lots of similarities to May/June 2019… pic.twitter.com/zPPV2Flhe1
— David Keller, CMT (@DKellerCMT) December 26, 2019
What does the move Tuesday in $GLD mean for bonds? $TLT $TNX $IEF pic.twitter.com/ChxRpCHjQF
— Shane C. Murphy (@murphycharts) December 26, 2019
2010-2019 pic.twitter.com/m4Y2aDtszy
— Michael Batnick (@michaelbatnick) December 26, 2019
You’re all caught up now. Thanks for reading!