Daily Chart Report ? Tuesday, December 29th, 2020
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Today’s Summary
Tuesday, December 29th, 2020
Indices: US Stocks closed lower in today's session with the Dow Jones Industrial Average slipping 68 points or 0.22%. The S&P 500 also fell 0.22%, while the Nasdaq fell 0.38%. The Russell 2000 underperformed, dropping 1.85%.
Sectors: 2 of the 11 sectors closed higher. Health Care led, rising 0.47%. Real Estate lagged, falling 0.77%.
Commodities: Crude Oil futures gained 0.80% to $48.00 per barrel. Gold futures inched higher by 0.13% to $1,883 per ounce.
Currencies: The US Dollar Index fell 0.41%.
Interest Rates: The 10-year US Treasury yield rose to 0.938%.
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 Grant Hawkridge (@granthawkridge). The chart shows the S&P 500 over the past two decades. Legendary technician, Bob Farrell once said, "Markets are strongest when they are broad, and weakest when they narrow to a handful of blue-chip names" Nearly 90% of the stocks in the S&P 500 are currently trading above their 200-day moving average, so it's fair to say that participation has been broad. This is nothing new, as we've seen this breadth metric remain above 80% for more than 30 trading days now. This high level of participation can't last forever. But as Grant points out, it can persist for longer than you might think. Especially after major lows. As you can see, breadth remained above 80% for 199 days as the market was recovering from the Dot-com bubble, and 135 days as the market was recovering from the Great Financial Crisis. This is yet another piece of evidence that suggests we could be in the early innings of a cyclical bull market.
Quote of the Day
"What right is not always popular and what is popular is not always right."
– Albert Einstein
Top Links
Should You Buy an All-Time High? - Of Dollars and Data
Here's a good read from data scientist, Nick Maggiulli. He examines the stats behind buying an asset at all-time highs.
Tuesday Trends (12/29/20) - Compound
Charlie Bilello highlights some noteworthy trends across the markets.
Golden Crosses Abound in Energy - Bespoke
Bespoke points out that the Energy sector is about to print a golden cross.
Stock Market Analysis December 29th, 2020 - AlphaTrends
In this video, Brian Shannon analyzes this week's price action and lays out some key levels to keep an eye on in the near-term.
January Almanac: Still a Solid Month in Post-Election Years - Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how January has historically performed in post-election years.