Daily Chart Report ? Wednesday, Deecember 9th, 2020
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Today’s Summary
Wednesday, December 9th, 2020
Indices: US Stocks closed lower in today's session with the Dow Jones Industrial Average slipping 105 points or 0.35%. The S&P 500 and Nasdaq dropped 0.79% and 1.94%, respectively. The Russell 2000 fell 0.82%.
Sectors: 3 of the 11 sectors closed higher. Energy and Industrials led, with both inching up 0.22%. Technology lagged, falling 1.92%.
Commodities: Crude Oil futures inched lower by 0.18% to $45.52 per barrel. Gold futures dropped 1.94% to $1,839 per ounce.
Currencies: The US Dollar Index rose 0.13%.
Interest Rates: The 10-year US Treasury yield inched higher to 0.933%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by Frank Cappelleri of Instinet (@FrankCappelleri). On the left is the Nasdaq 100 equal weight index over the past six months, and on the right is the Nasdaq 100 over the same period. The Nasdaq 100 is heavily weighted towards a handful of Mega-Cap names. The top 5 stocks within the Nasdaq ($AAPL, $MSFT, $AMZN, $TSLA, and $FB) represent a whopping 40% of the index. As we know Mega-Caps have lagged recently and only one of those five stocks is currently trading above its September high ($TSLA). Frank points out that the equal weight Nasdaq 100 broke out over a month ago while the Nasdaq broke out just last week. In the note, Frank explained, "While that connotes that a greater amount of names now are stretched, it also shows how strong the participation has been." Broad participation is certainly constructive. But now that we've gotten that, Mega-Cap heavyweights will need to wake up in order to propel this breakout higher.
Quote of the Day
"Whenever you find the key to the market, they change the locks."
– Lucien Hooper
Top Links
Uptrends, Uptrends Everywhere - SentimenTrader
Jason Goepfert takes a look at what has historically happened when nearly all stocks in the S&P 500 are above their 200-day moving average.
Energy Stocks Sending First Bullish Message in Over a Decade? - Kimble Charting Solutions
Chris Kimble breaks down a long-term ratio chart of the Energy Sector vs. the S&P 500.
Stock Market Analysis December 9 2020 - Brian Shannon
After today's mild sell-off, Brian Shannon lays out some key levels to watch in the near-term.
This is What Overwhelming Supply Looks Like - All Star Charts
JC Parets gives an update on Bitcoin as it struggles to extend above its former highs.
Dan, Why Semiconductors? - Marea Market Musings
Here's a good read from Dan Russo about Semiconductors and why they're such an important indicator.