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Today’s Summary
Thursday, December 2nd, 2021
Indices: Dow +1.82% | S&P 500 +1.42% | Nasdaq +0.83% | Russell 2000 +2.74%
Sectors: All 11 sectors closed higher. Financials led, gaining 2.98%. Health Care lagged but still rose 0.49%.
Commodities: Crude Oil futures rose 1.42% to $66.50 per barrel. Gold futures dropped 1.21% to $1,763 per ounce.
Currencies: The US Dollar Index gained 0.10%.
Interest Rates:Â The US 10-year Treasury yield rose to 1.448%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
I humbly present the ASH trade:
Apple $AAPL
Semiconductors $SMH
Homebuilders $ITB
Three charts showing strength during a period of market dislocation. pic.twitter.com/xNxuPB4iOD— David Keller, CMT (@DKellerCMT) December 2, 2021
Today’s Chart of the Day was shared by David Keller (@DKellerCMT). It’s a daily bar chart of the Semiconductor ETF, $SMH, over the past two years. Stocks rebounded today, with some of the major indices finding support exactly where they needed to. If a tradeable low is in, then it would make sense to look for buying opportunities in areas of the market that held up relatively well throughout the recent pullback. David points out that Apple ($AAPL), Semiconductors ($SMH), and Homebuilders ($ITB) all showed relative strength over the past week as the rest of the market was selling-off. It doesn’t hurt that Homebuilders have bullish seasonality over the next few months. Keep an eye on these three names if the market continues to rebound.
Quote of the Day
“Risk is like fire: If controlled it will help you. If uncontrolled it will rise up and destroy you.”
– Theodore Roosevelt
Top Links
December Almanac: Small-Cap Effect and Santa Claus Rally – Almanac Trader
Jeff Hirsch shares some insights on December seasonality.
This Small-Cap Correction is One of the Fastest in History – SentimenTrader
Jason Goepfert points out that it took the Russell 2000 just 15 days to fall 10%, marking the 4th fastest correction ever.
Breadth is Bad, but There May Be a Silver Lining – Potomac Fund Management
Dan Russo examines market breadth.
Sentiment Collapse – Bespoke
Bespoke analyzes the results of the latest sentiment surveys.
The Most Bears in Over a Year – All Star Charts
JC Parets takes a look at the recent jump in pessimism.
Top Tweets
The S&P 500 is set to close with 5 straight trading days of 1%+ absolute moves. Last time this happened was a 7-day streak from 10/28-11/5/20.
— Bespoke (@bespokeinvest) December 2, 2021
Good Morning Everyone! Remember, going back to 1950 on the S&P, December has been a positive month 75% of the time with an average return of 1.6%. pic.twitter.com/WsIRFzWqaU
— Genevieve Roch-Decter, CFA (@GRDecter) December 2, 2021
While seasonality tracked perfectly since Sept, it stopped last week: Thanksgiving & after is on avg bullish and $SPX put in an odd worst Thanksgiving since 1940s
Seasonals now bullish until Dec 6-8 when they dip before Xmas surge. Big test here if seasonality still live or not pic.twitter.com/LSzPf73abH
— Adam Mancini (@AdamMancini4) December 2, 2021
Stocks are extremely oversold.
McClellan Oscillator hit bottom 1% of all days since 2007.
Massive capitulation selling, in a strong market *uptrend* testing support – historically a powerful Bullish combination.
A potential big Buy opportunity soon – watch closely for turn UP. pic.twitter.com/hQnWO0j0Wo
— Macro Charts (@MacroCharts) December 2, 2021
Something else we don't see too often. Bollinger Band Width for $VIX > 90. Haven't seen that since this whole COVID thing got started. pic.twitter.com/mupRkILEq2
— Jim Carroll (@vixologist) December 2, 2021
The market has been correcting for 9 months.
If you don't look at the $SPY as your gauge of health.
The lesson of this year is the indices are not an edge….unless you trade indices… pic.twitter.com/L5IEDNtWiZ
— Ken Goodreau, CMT (@KenGoodreau) December 2, 2021
We've been tracking this all year… $ARKK continues to follow the Nasdaq in 2000 analogue… telling with rates at 1.45%, the long-duration growth names still can't get a bid. When they're done selling the small-cap growth names, will they move on to the big ones? @StrategasRP pic.twitter.com/IdZlnbqmFF
— Chris Verrone (@verrone_chris) December 2, 2021
Uh-oh for IPOs … Renaissance IPO Index is back in bear market territory
[Past performance is no guarantee of future results] pic.twitter.com/khB4H9wnAg— Liz Ann Sonders (@LizAnnSonders) December 2, 2021
Home-builders Relative Seasonality. pic.twitter.com/gFJgKTLuMa
— Nautilus Research (@NautilusCap) December 2, 2021
Emerging markets ex. China$EEM $EMXC pic.twitter.com/q831rBC4jb
— J4 (@J4_doji) December 2, 2021
Who's buying Chinese Tech stocks down here? $CQQQ pic.twitter.com/pbh9lzFQba
— J.C. Parets (@allstarcharts) December 2, 2021
Reiterating the judgment to be long WTI Crude Oil for a bounce… pic.twitter.com/KufkqoyZVz
— Carter Braxton Worth (@CarterBWorth) December 2, 2021
Great moments in Presidential Chart Crimes. https://t.co/aU6USevIgY
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 2, 2021
You’re all caught up now. Thanks for reading!