Daily Chart Report ? Thursday, December 10th, 2020
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Today’s Summary
Thursday, December 10th, 2020
Indices: US Stocks were a mixed bag in today’s session with the Dow Jones Industrial Average slipping 70 points or 0.23%. The S&P 500 inched lower by just 0.13%, while the Nasdaq rose 0.54%. Small-Caps outperformed with the Russell 2000 gaining 1.08%.
Sectors: 4 of the 11 sectors closed higher. Energy led for the third straight day, gaining 3.07%. Industrials lagged, falling 0.95%.
Commodities: Crude Oil futures moved higher by 2.77% to a multi-month high of $46.78 per barrel. Gold futures were more or less flat, and are currently trading at $1,837 per ounce.
Currencies: The US Dollar Index fell 0.34%.
Interest Rates: The 10-year US Treasury yield moved lower to 0.901%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Adaptiv (@adaptiv). It’s a ratio chart of Emerging Markets vs. the S&P 500 over the past 2.5 years ($EEM/$SPX). Emerging Markets have persistently underperformed the S&P 500 over the past decade. The group never fully recovered from the Financial Crisis, seeing as $EEM hasn’t printed an all-time high since 2007. However, things could get interesting for Emerging Markets in 2021 and beyond. On an absolute basis, $EEM is approaching the 2007 highs. On a relative basis, $EEM has already broken out from a multi-year downtrend and is now breaking out from a large base. In other words, $EEM has begun to outperform the S&P 500 in recent months. In a comment to The Chart Report, David Zarling at Adaptiv said, “Latin American stocks are showing themselves to be the strongest of the Emerging Market groups, along with India. Both those areas are also making new relative highs. It also doesn’t hurt that we continue to see dollar weakness across a majority of foreign currencies. This environment creates a tailwind for this trend to continue.”
Quote of the Day
“Don’t debate people in the media when you can debate them in the marketplace.”
– Naval Ravikant
Top Links
Meet the Nasdaq 100’s Post Election Leaders – Bespoke
Bespoke takes a look at the leaders and laggards within the Nasdaq 100 since Election Day.
David Keller On Markets Pushing Higher, Driven by Energy & Financials – TD Ameritrade Network
In this clip, David Keller weighs the positive/negative aspects of the current market environment.
Global Growth and Higher Rates Distilled into One Chart – Cully Charts
Ian Cully examines the outlook for Commodities and Bonds.
MTB is Ready to Break Resistance and Push Into The Leading Quadrant – StockCharts
Julius de Kempenaer highlights one particular Bank stock that is poised to outperform – M&T Bank, $MTB.
Interest Rates Turn “Golden” – SentimenTrader
Jason Goepfert points out that the 10-year US Treasury yield recently registered a Golden Cross.