Daily Chart Report ? Friday, December 18th, 2020
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Today’s Summary
Friday, December 18th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average falling 124 points or 0.41%. The S&P 500 and Nasdaq slipped 0.35% and 0.07%, respectively. The Russell 2000 closed lower by 0.41%.
Sectors: 5 of the 11 sectors closed higher. Materials led, rising 0.45%. Real Estate lagged, falling 1.73%.
Commodities: Crude Oil futures moved higher for the fifth straight day, rising 1.44% to $49.24 per barrel. Gold futures were more or less flat, slipping just 0.08% $1,889 per ounce.
Currencies: The US Dollar Index inched higher by 0.12%.
Interest Rates: The 10-year US Treasury yield moved higher to 0.943%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Shane Murphy (@murphycharts). It’s a weekly candlestick chart of the US Dollar Index ($DXY) over the past 23 years. The US Dollar is one of the most important charts to watch right now. This is because so many of the trends and themes we’ve seen in recent months have been partly driven by the weakening US Dollar. The S&P 500, Commodities, Emerging Markets, and even Bitcoin have all benefited from the Dollar decline. This might not surprise you considering these assets are priced in Dollars, meaning it’s literally the denominator of the equation. In a comment to the Chart Report, Shane said, “For starters, the Dollar is below a downward sloping 200-day moving average, so the path of least resistance is clearly lower. We sliced through key support around 92 a couple of weeks ago, and it’s continued to make multi-year lows ever since. The next area of potential support is around 88. If that fails to hold, it could move significantly lower, which should continue to boost risk assets.” For more perspective on this topic, check out this piece from Aaron Jackson, and this note from LPL Financial Research.
Quote of the Day
“A bank is a place that will lend you money if you can prove that you don’t need it.”
– Bob Hope
Top Links
King Dollar – The Rotation Report
Aaron Jackson takes a look at the weakening US Dollar and what it could mean for other asset classes.
Real Santa Claus Rally – Almanac Trader
Seasonality expert, Jeff Hirsch explains everything you need to know about the Santa Claus Rally.
Investors Are Underweight Cash, First Time Since 2013 – All Star Charts
JC Parets points out that investors are underweight cash for the first time in years.
A Rally For the History Books – BullMarkets.co
Troy Bombardia weighs both the bullish and bearish aspects of the current market environment.
Don’t Fight the Trend; Setups in the Tech Sector – AlphaCharts
Brian at AlphaCharts highlights some attractive chart setups with the Tech sector.