Daily Chart Report ? Thursday, December 3rd, 2020
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Today’s Summary
Thursday, December 3rd, 2020
Indices: US Stocks closed slightly higher in today's session with the Dow Jones Industrial Average gaining 86 points or 0.29%. The S&P 500 was flat (-0.06%) while the Nasdaq inched higher by 0.23%. The Russell 2000 outperformed, rising 0.58%.
Sectors: 6 of the 11 sectors closed higher. Energy led again today, gaining 1.05%. Utilities lagged, falling 1.04%.
Commodities: Crude Oil futures moved higher by 0.80% to $45.64 per barrel. Gold futures rose 0.60% to $1,841 per ounce.
Currencies: The US Dollar Index continued lower by 0.46% to a new multi-year low.
Interest Rates: The 10-year US Treasury yield fell to 0.910%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Chris Kimble (@KimbleCharting). It’s a monthly chart of the US Dollar Index ($DXY) going all the way back to 1985. $DXY fell for the third straight day today and is now decisively below that key $92 support level that we highlighted a couple of weeks ago. Chris gives us three reasons why $DXY could continue trending lower over the next few months. (1) Earlier this year, $DXY tested and failed at the upper bounds of a 20-year falling channel (in red/purple). (2) It has recently broken below the lower bounds of a 9-year rising channel (in green). (3) It has formed a double top at the 61.8% Fibonacci retracement of the 2002-2008 decline. To be fair here, the death of the Dollar has become a crowded trade at this point with shorts nearing record levels. Either way, we want to continue to keep an eye on the Dollar here as it will likely have an impact on other risk assets including Large-Caps, Commodities, Emerging Markets, and even Bitcoin. For more on this, check out the full note here.
Quote of the Day
"If you can keep your head when all about you are losing theirs, maybe you haven't heard the news.”
– Rudyard Kipling
Top Links
Three Surprising Market Stats That Can Help Investors Going into 2021 - CNBC
In this clip from CNBC, Ryan Detrick drops some stats that should have the bulls smiling.
Gold vs. Bitcoin - One's a Useless Rock, The Others an Almost Useless Currency - Big Trends Monthly
Josh Brown and JC Parets highlight some noteworthy long-term trends that are in play right now.
Oil & Gas ETF (XOP) Undergoing Long-Term Trend Reversal - See it Market
Larry Tentarelli points out that the Oil & Gas ETF, $XOP, could be in the process of a long-term trend change.
Disciplined To Your Process - Futures Radio
Here's a good podcast with respected technician, Katie Stockton. She gives some insight into her research process and explains why charts have so much value.
Electric Vehicle Breakdowns - StockCharts
Greg Schnell breaks down the charts of some of the high-flying Electric Vehicle stocks.
Top Tweets
$SPX daily staying mostly ‘overbought’ is a defining characteristic of an uptrend (top panel). Consecutive closes under the 13-e (green line) will be a heads up.
SPX, COMPQ, NDX, RUT, DJIA, RUA, WLSH, NYSE all at ATHs pic.twitter.com/L3OVdHDH4V
— Urban Carmel (@ukarlewitz) December 3, 2020