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Today’s Summary
Friday, December 3rd, 2021
Indices: Dow -0.17% | S&P 500 -0.84% | Nasdaq -1.92% | Russell 2000 -2.13%
Sectors: 3 of the 11 sectors closed higher. Consumer Staples led, gaining 1.24%. Consumer Discretionary lagged, falling 1.94%.
Commodities: Crude Oil futures slipped 0.36% to $66.26 per barrel. Gold futures gained 1.20% to $1,784 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The US 10-year Treasury yield fell to 1.346%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Micro-caps break support $RUMIC pic.twitter.com/VW7yhPEmbO
— Michael Kahn, CMT (@mnkahn) December 3, 2021
Today’s Chart of the Day was shared by Michael Kahn (@mnkahn). It’s a daily bar chart of the Russell Micro-Cap index, year-to-date. Michael points out that Micro-Caps broke below support today, and closed at a 10-month low. Similar to Small-Caps, Micro-Caps have been stuck in a tight range for the majority of the year between 850~990. Small-Caps are holding on for dear life above support, but seeing Micro-Caps break down like this begs the question; will Small-Caps follow suit?
Quote of the Day
“I enjoy the hunt much more than
the ‘good life’ after the victory.”
– Carl Icahn
Top Links
5 Charts with LPL Research | Volatility is Back – LPL Financial Research
In this quick video, Ryan Detrick and Scott Brown break down five noteworthy charts.
December Typically Starts Out Weak – Almanac Trader
Jeff Hirsch points out that while December has a bullish track record, most of the gains tend to come in the back half of the month.
A Split Market as Oil Tumbles into a Bear Market – SentimenTrader
Jason Goepfert takes a look at the deterioration in breadth.
Renaissance Macro’s Jeff deGraaf is Concerned About Low Yields – CNBC
In this clip, Jeff deGraaf shares his thoughts on Homebuilding stocks and Treasury yields.
Why This Isn’t a Bear Market – All Star Charts
JC Parets explains that the strength in Homebuilding stocks is a bright spot in an otherwise dull market.
Top Tweets
The S&P 500 is back below its 50-DMA and close to a one-month low. pic.twitter.com/YrhOVmZd1V
— Eddy Elfenbein (@EddyElfenbein) December 3, 2021
Positively divergent lower low in S&P futures. #SPX pic.twitter.com/BYgudwBbsE
— David Brady (@GlobalProTrader) December 3, 2021
I'm hearing about "carnage" across all markets. Take a look at the monthly chart of $spy for a little perspective as it's important to know about your time frame pic.twitter.com/1f8YIlxNsA
— Scott Redler (@RedDogT3) December 3, 2021
$VIX with its 2nd highest weekly close of the past year (only late January was higher).
VIX to 3Mon VIX ratio closed just a hair below 1.0 ? pic.twitter.com/X4hsxWIefz
— ??????? ??? ??? (@BrandonVanZee) December 3, 2021
Hello again, #volatility fans. This is called "backwardation." It suggests that some group of investors thinks that Monday will be a bad day. pic.twitter.com/SoziO9gDmk
— Jim Carroll (@vixologist) December 3, 2021
$CPCE >60 for the first time since Aug. All instances since the election shown below pic.twitter.com/VFggX0T3yT
— Urban Carmel (@ukarlewitz) December 3, 2021
One of the first step's to pushing the broad market higher would be the "average stock" getting back above it's respective 200 day MA…$IWM $VALUG $XVG pic.twitter.com/AvTSKiOWir
— Ian McMillan, CMT (@the_chart_life) December 3, 2021
$NDX small h&s looks pretty obvious now pic.twitter.com/YoMilFUoqU
— Cowboy (@Xiphos_Trading) December 3, 2021
$NYFANG The front lines have been breached and the generals are under attack. pic.twitter.com/CofiYApWbQ
— Kate's Dad (@KASDad) December 3, 2021
Equal-weighted version of the S&P 500 hasn’t gone back to visit this week’s lows today, most of the pressure from purge in expensive secular-growth spilling into the mega-cap Nasdaq names. pic.twitter.com/nJm7ie6ROY
— Michael Santoli (@michaelsantoli) December 3, 2021
ARK Innovation $ARKK has now retraced 50% of its post-COVID rally. pic.twitter.com/SuxAMFGJYG
— Bespoke (@bespokeinvest) December 3, 2021
These look the same because nearly 30% of holdings in the Russell Micro-Cap Index are health care stocks $IWC $PSCH
And they're headed lower… pic.twitter.com/1p4LSPiGMp
— Steven Strazza (@sstrazza) December 3, 2021
Very important chart…$TLT $GOVT pic.twitter.com/XvPz862Zhl
— Shane C. Murphy (@murphycharts) December 3, 2021
The 30-year yield is taking out its summer lows…. $TYX pic.twitter.com/AbLGaoccva
— Ian Culley (@IanCulley) December 3, 2021
Ten year yields breaking down $TNX pic.twitter.com/xz6pHC8RVv
— David Rath (@DJwrath) December 3, 2021
Lovely setup here for $TOL, breaking out to new highs with great relative strength on the move.
Quite a departure from, ya know… the rest of this market. I think my guy @DKellerCMT is onto something with this "ASH" trade! pic.twitter.com/vJ6uX790Uf
— Grayson Roze (@GraysonRoze) December 3, 2021
DocuSign down 40% after investors realize that fax machines are cheaper. pic.twitter.com/OzrKH2mbgD
— Genevieve Roch-Decter, CFA (@GRDecter) December 3, 2021
You’re all caught up now. Thanks for reading!