Daily Chart Report ? Monday, December 14th, 2020
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Today’s Summary
Monday, December 14th, 2020
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average fell 185 points or 0.62%. The S&P 500 moved lower by 0.44%, while the Nasdaq rose 0.50%. The Russell 2000 closed slightly higher, inching up 0.11%.
Sectors: 2 of the 11 sectors closed higher. Tech led, gaining 0.36%. Energy lagged, dropping 3.50%.
Commodities: Crude Oil futures moved higher by 0.90% to $46.99 per barrel. Gold futures fell 0.62% $1,832 per ounce.
Currencies: The US Dollar Index inched lower by 0.06%.
Interest Rates: The 10-year US Treasury yield slipped to 0.896%.
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 Arthur Hill (@ArthurHill). It’s a chart of the Russell 2000 ETF, $IWM, since its inception in 2000. Small-Caps have been sprinting full speed ahead in recent weeks. Arthur points out that $IWM is now more than 30% above its 200-day moving average, which the most extended it’s ever been. In fact, there have only been two prior instances where $IWM was more than 25% above its 200-day moving average (2003 & 2009). Interestingly, both of those instances occurred as the broader market was recovering from a major bear market…sound familiar? Like many of the developments we’ve seen recently, the interpretation of this depends on your time frame. In the long-term, Small-Caps strength is constructive to the broader market outlook. In the short-term, Small-Caps are getting extremely stretched and could be due for some mean reversion. If you’d like some more food for thought on this – check out what happened after the Nasdaq ($QQQ) got this stretched in early September.
Quote of the Day
“If you run a four-minute mile, you’re going to need a breather.”
– Todd Sohn
Top Links
Macro Monday – Jotting on Charts
Grant Hawkridge shares some noteworthy charts that shed some light on the macro environment.
Here Come Santa Claus – The Weekly Trend
In this podcast, David Zarling and Ian McMillan weigh-in on sentiment, breadth, volatility, and more.
Japan Breaks Out To 29-Year Highs. What Are We Buying? – All Star Charts
JC Parets takes a look at the breakout in Japanese equities.
U.S. Dollar About To Reach The Point Of No Return? – Kimble Charting Solutions
Chris Kimble points out that the US Dollar Index, $DXY, is approaching a key level around $88-89.
Bull Markets Rotate Through Sector Rotation – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff highlight the strongest stocks, trends, and themes.