Daily Chart Report ? Monday, December 7th, 2020
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Today’s Summary
Monday, December 7th, 2020
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average fell 148 points or 0.49%. The S&P 500 slipped 0.19%. The Nasdaq closed higher for the ninth straight day, rising 0.45%. The Russell 2000 was flat (-0.06%).
Sectors: 3 of the 11 sectors closed higher. Communications led, gaining 0.63%. Energy lagged, falling 2.34%.
Commodities: Crude Oil futures fell 1.08% to $45.76 per barrel. Gold futures moved higher by 1.41% to $1,866 per ounce.
Currencies: The US Dollar Index rose 0.18%.
Interest Rates: The 10-year US Treasury yield slipped to 0.923%.
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 on Twitter by Yuriy Matso (@yuriymatso). It’s a monthly candlestick chart of the Russell 2000 over the past two decades. The night before the US Presidential Election, Yuriy made a timely observation that the Russell 2000 has a history of breaking out after US Elections. Well, it sure looks like history is trying to repeat itself as the Russell 2000 has surged to record highs in the past month. According to Yuriy, the prior two post-election rallies (2012 & 2016) both lasted about two-years and ran about 45% and 35%, respectively. The Russell is currently trading just under 1900 and a similar size rally would bring it up to ~2300-2400. Small-caps have been dead money for the past few years. Now that they’ve finally broken out, it’s not all that crazy to think we could see a similar scenario play out over the next 1-2 years.
Quote of the Day
“If we become increasingly humble about how little we know, we may be more eager to search.”
– Sir John Templeton
Top Links
Investors are Bulled Up. For Good Reasons – The Rotation Report
Here’s a good read from Aaron Jackson in which he outlines the bull case for Stocks.
SPAC Mania While Mega-Cap Stocks are Sleeping – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon and Ivanhoff highlight the strongest stocks, trends, and themes across the market.
Copper Bulls Getting Greedy As Price Reaches Resistance – See It Market
Chris Kimble points out that bullish sentiment on Copper futures is starting to get extreme as price tests a key resistance level.
C.O.T Copper Longs – Bespoke
Bespoke takes a quick look at commodity positioning.
Closer To The Begining Than The End – The Weekly Trend
In this podcast, David Zarling and Ian McMillan weigh-in on some of the major technical developments going on right now.