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Today’s Summary
Tuesday, December 27th, 2022
Indices: Dow +0.11% | S&P 500 -0.40% | Russell 2000 -0.65% | Nasdaq 100 -1.48%
Sectors: 5 of the 11 Sectors closed higher. Energy led gaining +1.07%. Consumer Discretionary lagged, falling -1.62%.
Commodities: Crude Oil futures were flat and continue trading around $79.53 per barrel. Gold futures rose +1.05% to $1,823 per ounce.
Currencies: The US Dollar Index fell -0.17% to $104.15.
Crypto: Bitcoin fell -1.28% to $16,700. Ethereum fell -1.24% to $1,212.
Interest Rates: The US 10-year Treasury yield rose to 3.845%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Tesla $TSLA has been cut by four since its all-time high in November 2021, going from $1.2T to $350B in market cap. pic.twitter.com/5J3q9GCxsG
— Alfonso Depablos (@AlfCharts) December 27, 2022
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). Tesla continues to fall off a cliff, dropping more than 11% today. It’s fallen 14 of the past 16 trading days, losing more than 40% in that short time. It’s still up more than 350% from its Covid low, however, it’s down more than 73% from its peak just over a year ago. The most recent leg lower began in early November when it broke the neckline of a long-term head & shoulders top. With RSI reaching its most oversold reading ever today, many are looking to buy the dip on this former leader. However, the long-term trend remains lower, and catching a falling knife can be a disaster. It would have to rally more than 70% from here just to retest the neckline around $180. Look for new leaders rather than fixating on the former leaders.
Quote of the Day
“In bear markets, stocks return to their rightful owners.”
– J.P. Morgan
Top Links
A Chilly Ending – StockCharts
Greg Schnell takes a look at the rotation out of Mega-Cap stocks.
Tesla (TSLA) Loses its Charge – Bespoke
Bespoke examines the selloff in Tesla.
A Good Time to Pick Stocks – Means to a Trend
Austin Harrison points out that more individual stocks outperformed the S&P 500 in 2022 than in any other year since 2009.
Smile. Stocks Keep Going Up! – All Star Charts
JC Parets shares his thoughts on the current market environment and recent leadership.
Small Caps Could Do Well if the Economy Avoids a Recession, Says Carson Group’s Ryan Detrick – CNBC
In this clip, Ryan Detick discusses the bifurcated market environment we’re in.
Top Tweets
Mega losses pic.twitter.com/E5xm3V8vYx
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 27, 2022
Nasdaq has its last wave of tax loss selling coming tomorrow. It sits near the closing lows of the year and is at an important inflection point pic.twitter.com/caW2kste1H
— Matt Caruso, CFA, CMT (@Trader_mcaruso) December 27, 2022
There's absolutely no reason to be bothering with large cap tech stocks at this stage. I expect them to underperform the broad market for awhile.
Major topping pattern in large cap tech $XLK vs. S&P 500 $SPY$AAPL $MSFT account for more than 40% of XLK holdings. pic.twitter.com/QhYWF1GV5Z
— Justin Spittler (@JSpitTrades) December 27, 2022
Health Care > spring 2020 relative highs.. $XLV $SPY pic.twitter.com/bkuvSO8ML6
— Drew Wells, CMT, CIMA® (@DrewTheCharts) December 27, 2022
2022 could go down as one of the worst Decembers ever for stocks.
Turns out, other bad final months of the year (4% loss or greater) didn't suggest much of a warning.
In fact, up more than 20% a year later is quite surprising. pic.twitter.com/lJsl8hdxjB
— Ryan Detrick, CMT (@RyanDetrick) December 27, 2022
Commodities can provide great trading opportunities during stock bear markets. $SPX $CRB $GSG pic.twitter.com/39BJpI2KbV
— Brian G (@alphacharts) December 27, 2022
Tesla looks to close lower for the 14th time in the last 16 sessions. pic.twitter.com/BobUv7j1KJ
— Eddy Elfenbein (@EddyElfenbein) December 27, 2022
Most oversold ever! Tesla dip buyers want a reason to buy, waiting for support at 110 or … 95 $TSLA pic.twitter.com/lyz3VJD967
— Abigail Doolittle (@TheChartress) December 27, 2022
"Buy when there is blood in the streets" is a popular phrase
Is that when a stock is down 10% in a month?
20%?
30%?
40%?$TSLA down 44% MTD pic.twitter.com/JyDMH99k0z— Brian Shannon, CMT (@alphatrends) December 27, 2022
Tesla $TSLA closed today as the 20th largest stock in the world down from the 12th largest yesterday
Tesla was flipped by these companies today
Walmart $WMT
JPMorgan $JPM
Taiwan Semi $TSM
LVMH
Procter & Gamble $PG
Nvidia $NVDA
Chevron $CVX
Eli Lilly $LLY pic.twitter.com/HBPsysgYPj— StockMKTNewz – Evan (@StockMKTNewz) December 27, 2022
You’re all caught up now. Thanks for reading!