Daily Chart Report ? Thursday, December 29th, 2022
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Today’s Summary
Thursday, December 29th, 2022
Indices: Russell 2000 +2.57% | Nasdaq 100 +2.54% | S&P 500 +1.75% | Dow +1.05%
Sectors: All 11 Sectors closed higher. Communications led, gaining +2.76%. Consumer Staples lagged but still rose +0.43%.
Commodities: Crude Oil futures fell -0.71% to $78.40 per barrel. Gold futures rose +0.56% to $1,826 per ounce.
Currencies: The US Dollar Index fell -0.47% to $103.97.
Crypto: Bitcoin gained +0.51% to $16,624. Ethereum rose +0.71% to $1,198.
Interest Rates: The US 10-year Treasury yield dropped to 3.818%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
20. Holding Out for a Hero:
Despite terrible investor sentiment, individual investors were slow to reduce holdings in equities. Allocations to equities are off of the highs (down from 70% to 62% ) but remain well above prior major bear market lows (45-50% in 2001 and 2009). pic.twitter.com/hemoKeB14e— Cameron Dawson (@CameronDawson) December 29, 2022
Today’s Chart of the Day was shared by Cameron Dawson (@CameronDawson). The chart emphasizes the disparity between how investors feel, and how they’re actually positioned. The blue line represents the bull-bear spread from the AAII Sentiment Survey. This was the most bearish year in the history of the AAII Sentiment Survey, with the bull-bear spread spending a record 39 consecutive weeks in negative territory. Extremely bearish sentiment should be bullish, however, AAII Sentiment failed to act as a contrarian indicator this year. While investors might say they’re bearish, they hardly reduced their exposure to stocks this year. As Cameron points out, equity exposure fell from 70% to 62%, which is still elevated within its historical range and well above levels where previous bear markets have bottomed. Watch what they do, not what they say.
Quote of the Day
“Part of being a contrarian is knowing when to go with the consensus.”
– Arun Chopra
Top Links
22 Charts for 2022: A Year in Review – New Edge Wealth
Cameron Dawson highlights 22 charts that sum up 2022.
Halfway Through This Year Santa Claus Rally – All Star Charts
JC Parets checks in on the Santa Claus Rally at its halfway mark.
Grinch Visits Wall Street on Last Trading Day of Year – Almanac Trader
Jeff Hirsch points out that the final trading day of the year (tomorrow) has historically been bearish.
What Happens When Everyone Agrees That Stocks Will Fall? – Carson Group
Ryan Detrick explains why the first half of 2023 could be better than the crowd expects.
Breaking Down the Markets (with Jay Woods, Chief Market Strategist at DriveWealth) – MoneyNet
In this quick video, Jay Woods shares his perspective on the end-of-year price action.
Top Tweets
You’re all caught up now. Thanks for reading!
