Daily Chart Report ? Friday, December 4th, 2020
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Today’s Summary
Friday, December 4th, 2020
Indices: US Stocks ended the week on a positive note, with all four major indices closing at all-time highs. The Dow Jones Industrial Average rose 249 points or 0.83%. The S&P 500 and Nasdaq moved higher by 0.88% and 0.70%, respectively. The Russell 2000 significantly outperformed, gaining 2.37%.
Sectors: 10 of the 11 sectors closed higher. Energy led for the third day in a row, jumping 5.45%. Utilities lagged, falling 1.00%.
Commodities: Crude Oil futures moved higher by 1.36% to $46.26 per barrel. Gold futures were unchanged and continue to trade around $1,840 per ounce.
Currencies: The US Dollar Index inched higher by 0.10%.
Interest Rates: The 10-year US Treasury yield rose to 0.968%.
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 Arthur Hill (@ArthurHill). It’s a weekly bar chart of the S&P 500 over the past three years, along with the CNN Fear & Greed Index below. One of the biggest concerns lately has been the rise in bullish sentiment. As we know, sentiment is often a contrarian indicator, especially at extremes. The CNN Fear & Greed Index is currently over 80, indicating extreme optimism among market participants. Interestingly, the market actually moved higher for several weeks after the prior two readings over 80. Perhaps CNN should stick to news rather than creating technical indicators. Other sentiment indicators such as the Put/Call ratio and the Investors Intelligence Survey are flashing similar warning signs, which is an issue in the short-term. However, longer-term, the trend is unequivocally higher, and a pullback would likely be welcomed by many as a buying opportunity.
Quote of the Day
“Today was good. Today was fun. Tomorrow is another one.”
– Dr. Seuss
Top Links
Weekly Market Performance – Markets Headed Higher Coming Into December
Here’s a thorough summary of this week’s price action from the team at LPL Financial Research.
Bearing Down Into The Holiday – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Jerry Parker Talks Futures’ Ride Ahead of Jobs Report – TD Ameritrade Network
Legendary trend follower, Jerry Parker offers his perspective on Stocks and Commodities.
Small Stocks See Big Momentum – SentimenTrader
Jason Goepfert shares some insights about the recent surge in Small-Caps.
Stock Market, Individual Stocks & Crypto Analysis – AlphaTrends
In this video, Brian Shannon reviews some individual Stocks and Cryptocurrencies.