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Today’s Summary
Monday, December 28th, 2020
Indices: US Stocks closed higher to start the week with the Dow Jones Industrial Average advancing 204 points or 0.68%. The S&P 500 and Nasdaq rose 0.87% and 0.74%, respectively. The Russell 2000 underperformed, falling 0.38%.
Sectors: 9 of the 11 sectors closed higher. Communications led, rising 1.80%. Energy lagged, falling 0.63%.
Commodities: Crude Oil futures fell 1.26% to $47.62 per barrel. Gold futures inched lower by 0.15% to $1,880 per ounce.
Currencies: The US Dollar Index ticked higher by 0.08%.
Interest Rates: The 10-year US Treasury yield inched lower to 0.926%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
If stocks are your thing, then the moves higher in these three names are three of the most important charts in the world right now…
Especially considering that these three names have a combined market cap of more than $5.6 trillion.$AMZN $AAPL $MSFT pic.twitter.com/Uw5VwskuCz
— Grayson Roze (@GraysonRoze) December 28, 2020
Today’s Chart of the Day was shared on Twitter by Grayson Roze (@GraysonRoze). From left to right are, Amazon ($AMZN), Apple ($AAPL), and Microsoft ($MSFT). These three stocks combined represent more than 30% of the Nasdaq and more than 15% of the S&P 500. All three surged off the March low but have spent the past four months consolidating. Consolidations like these typically resolve in the direction of the underlying trend, which in this case is up. We’re already starting to see them break out. $AAPL closed at an all-time high today for the first time since September 2nd and the other two closed above resistance. As Grayson points out, it would be wise to keep an eye on these juggernauts in the near-term, as the broader market (especially the Nasdaq) will likely follow.
Quote of the Day
“Either you run the day, or the day runs you.”
– Jim Rohn
Top Links
The Biggest Comeback of the Year – Ben Carlson
Ben Carlson takes a look at the Russell 2000’s epic fourth-quarter comeback.
Yearly Charts Point to a New Bull Market in REAL Asserts – Macro Ops
Alex Barrow takes a big-picture look at some noteworthy yearly candlestick charts.
Stock Uptrend Continues – StockCharts.com
Respected technician, John Murphy shares some of the charts he’s watching right now.
A Bit Frothy – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff highlight the strongest stocks, trends, and themes across the markets.
Commodities Breaking Out, Suggesting Bull Market is Ahead! – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the Commodities Index.
Top Tweets
Another Monday in 2020; another gap… (Thursday's high was 3703.82.) pic.twitter.com/OCZ8qd5ymf
— Walter Deemer (@WalterDeemer) December 28, 2020
Short interest on $SPY now the lowest since February pic.twitter.com/WK7GWpta0b
— Sarah Ponczek (@SarahPonczek) December 28, 2020
Recently hit 69% above its 200 DMA. For perspective, some prior assets at their peak:
Silver in '11 = 75%
NDX in '00 = 60%
Crude in '08 = 45%
NKY in '87-'89 = 30% pic.twitter.com/BzIbZ9IskL— Jonathan Krinsky,CMT (@jkrinskypga) December 28, 2020
$IAU — iShares Gold — strong seasonal tendency next 3-months. pic.twitter.com/HnKtE5hdOv
— Nautilus Research (@NautilusCap) December 28, 2020
$EEM decade-old resistance. Third time the charm? pic.twitter.com/3hon2LMyHi
— Mark Ungewitter (@mark_ungewitter) December 28, 2020
Small-caps relative to large-caps finding support at historic lows, as Emerging Markets relative to the S&P 500 do the same. Many areas of the marketplace speak the same story. $SPY, $EEM, $IWM, $QQQ pic.twitter.com/NIdh1jjTsE
— Ian Culley (@IanCulley) December 28, 2020
Broadening participation and market cap rotation, Strength from commodities and emerging markets, strength from ‘risk-on’ currencies. $SLY $MDY #Copper $EEM $IWV $AUD / $USD pic.twitter.com/jSeDcLnJEu
— Grant Hawkridge (@granthawkridge) December 28, 2020
There's a lot of movement toward the reopening trade:
Small > Big
Cyclical > Defensive
Higher Yields > Lower YieldsCheck out the bounce in 10-year Treasury yields. pic.twitter.com/nusvwA0Yzg
— Eddy Elfenbein (@EddyElfenbein) December 28, 2020
here's the 10 year treasury yield wedged up against the June high and the 20 day moving average
something has to give eventually $TNX $SPY pic.twitter.com/3Lbso9z46N
— ATMcharts (@ATMcharts) December 28, 2020
I can simplify it this much. What is your view? $DXY pic.twitter.com/P1WbUzBbm0
— Aksel Kibar, CMT (@TechCharts) December 28, 2020