Daily Chart Report ? Wednesday, December 23rd, 2020
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Today’s Summary
Wednesday, December 23rd, 2020
Indices: US Stocks were mixed in today's session. The Dow Jones Industrial Average rose 114 points or 0.38%. The S&P 500 closed flat (0.07%), while the Nasdaq slipped 0.29%. The Russell 2000 outperformed, gaining 0.87%.
Sectors: 8 of the 11 sectors closed higher. Energy led, rising 2.21%. Real Estate lagged, falling 0.95%.
Commodities: Crude Oil futures moved higher by 2.34% to $48.12 per barrel. Gold futures rose 0.42% $1,878 per ounce.
Currencies: The US Dollar Index fell 0.36%.
Interest Rates: The 10-year US Treasury yield inched higher to 0.941%.
The US Stock Market and Bond Market will close early tomorrow, and be closed all day Friday, December 25th.
We will resume our daily email on Monday, December 28th. Happy Holidays!
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). Ryan points out that the Santa Claus Rally begins tomorrow. This phenomenon, popularized by the Stock Traders Almanac, refers to a bullish seven-day stretch that takes place in the last five trading days of December and the first two trading days of the new year. This seven-day stretch is more likely to be positive than any other seven-day stretch of the year. Over the past 70-years, the S&P 500 has risen 77.9% of the time, for an average gain of 1.33%. Now before we get too bulled up, there's a flip side to this coin. As the founder of this phenomenon, Yale Hirsch, once said, "If Santa Claus should fail to call, bears may come to Broad and Wall." In other words, if returns are negative during this seven-day stretch, it would be a big red flag. As you can see, every time these seven days have been negative over the past 20-years, January has also been negative. So whether you're bullish, bearish, or neutral, it would be wise to keep an eye on the action in the S&P 500 over the next seven trading days. For more on this, check out the full note here.
Quote of the Day
"No one has ever become poor by giving."
– Anne Frank
Top Links
Todd Sohn's Picks - TD Ameritrade Network
Todd Sohn of Strategas Research offers up some attractive chart setups including, $AAPL, $SHOP, $SONO, $WWE, $SRPT, and $MSGE.
Consumer Staples Can't Keep Up - All Star Charts
JC Parets points out that relative weakness from the Consumer Staples sector is a positive sign for the broader market.
3 Reasons Why You Shouldn't Wait For the Stock Market to Crash - The Irrelevant Investor
Michael Batnick explains why it's silly to wait for a market crash to invest over the long-term.
Risk Management - Marea Market Musings
Dan Russo emphasizes the importance of having a risk management strategy.
The Simple Trick That Can Help You Hold Winners For Longer - The Lund Loop
Brian Lund shares some words of wisdom from the late Jon Boorman.