Daily Chart Report ? Friday, December 11th, 2020
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Today’s Summary
Friday, December 11th, 2020
Indices: US Stocks were mostly lower in today’s session, but the Dow Jones Industrial Average managed to inch higher by just 47 points or 0.16%. The S&P 500 and Nasdaq slipped 0.13% and 0.23%, respectively. Small-Caps underperformed, with the Russell 2000 falling 0.57%.
Sectors: 5 of the 11 sectors closed higher. Communications led, rising 0.60%. Energy lagged after leading for three straight days, dropping 1.15%.
Commodities: Crude Oil futures moved slightly lower by 0.45% to $46.57 per barrel. Gold futures rose 0.34% $1,844 per ounce.
Currencies: The US Dollar Index gained 0.18%.
Interest Rates: The 10-year US Treasury yield inched higher to 0.906%.
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 Ryan Detrick of LPL Financial Research (@RyanDetrick). On average, December has been the second-best month for the S&P 500 over the past 70 years. Ryan points out that the seasonal tailwind doesn’t really pick up until the second half of the month. As we know, there’s no such thing as a sure thing on Wall Street, and the S&P 500 doesn’t always follow its seasonal trend. Just take a look at what happened in December 2018! But with the S&P 500 trading firmly above its February and September peaks, it’s not crazy to think that Santa Claus will come to town this year. The term “Santa Claus Rally” gets thrown around a lot, but it’s often misunderstood. This phenomenon, popularized by The Stock Traders Almanac, strictly refers to the last five trading days in December and the first two trading days in January, in which the S&P 500 has enjoyed an average gain of 1.3%. In fact, it will be big a red flag if we don’t get some sort of Santa Claus Rally during that seven-day stretch. As Yale Hirsch once famously said, “If Santa Claus should fail to call; bears may come to Broad & Wall.”
Quote of the Day
“Winners focus on winning. Losers focus on winners.”
– Anonymous
Top Links
4 Signs of a Market Correction – All Star Charts
JC Parets explains that we’re not currently seeing any of the tell-tale signs of a stock market top.
IPO Craze – Bespoke
Bespoke illustrates how hot the IPO market has been recently.
Where Do We (Investors) Stand? – David Cox
In this quick video, David Cox highlights some noteworthy technical developments.
Looking Back on 2020, and Looking Ahead – Bull Markets.co
Troy Bombardia weighs some of the bullish/bearish aspects of the current market environment.
Copper’s Rally Likely to Continue as Historically Bullish Season Begins – Almanac Trader
Seasonality expert, Jeff Hirsch points out that we’re entering a bullish time of year for Copper futures.