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Today’s Summary
Wednesday, December 4th, 2019
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average gaining 147 points or 0.53%. The S&P 500 and Nasdaq advanced 0.63% and 0.54%, respectively. The Russell 2000 was the strongest of the major indices, gaining 0.70%.
Sectors: All 11 sectors closed higher. Energy led, gaining 1.50%. Materials lagged but still inched higher by 0.22%.
Commodities: Crude Oil futures jumped 4.15% to $58.43 per barrel. Gold futures slipped 0.28% to $1,480 per ounce.
Currencies: The US Dollar Index slipped 0.14%.
Interest Rates: The US 10-year Treasury yield rose to 1.777%.
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 in a note from Frank Cappelleri of Instinet. It’s a monthly bar chart of the Biotech ETF, $IBB, since its inception in 2001. Frank points out that $IBB just had its best two-month run since 2003, gaining 20% between October-November. He calls it “very extended” in the short-term, with the ETF printing its highest RSI reading ever. He explains: “It’s safe to say that this kind of pace can’t persist.” He adds that longer-term, $IBB could be in the process of building a multi-year base, saying: “The ETF remains below its most recent peak from 2015. And that means this spike could simply be part of the consolidation process before the next multi-year breakout.” Bullish or bearish, it would be wise to keep Biotech on your 2020 watchlist.
Quote of the Day
Top Links
Analyst Suttmeier Says Buy S&P 500 E-Mini Dips for Possible New Highs – Bloomberg
Steve Suttmeier of Bank of America, and Abigail Doolittle discuss the recent pullback in Treasuries, and Steve breaks down a chart of S&P 500 futures.
Fears of Volatility Regime Change – SentimenTrader
Jason Goepfert of SentimenTrader uses historical data to show that investors shouldn’t fear the recent spike in volatility.
December 2019 Looks Nothing Like December 2018 – Ciovacco Capital Management
In this piece, Chris Ciovacco points out that the S&P 500 is in a much different situation right now, then it was around this time last year.
Why This Strategist Thinks Stocks Will Keep Climbing in 2020 – CNN Money
In this clip, Dan Russo of Chaikin Analytics discusses why he’s bullish on stocks and thinks the S&P 500 could rally to 3,200.
Reasons We Still Believe in December – LPL Financial Research
The team at LPL Financial Research explains that despite a rough start, December could still shape up to be a good month for equities.
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Top 10 Tweets
If this baby gets abandoned I think I will adopt it $DIA pic.twitter.com/iigaxs7LKf
— Peter Brandt (@PeterLBrandt) December 4, 2019
As of this past session, the $SPX has gone 36 consecutive trading days without a 1% change (close to close) to match July for the longest bout of quiet in 14 months pic.twitter.com/zDnut6vobh
— John Kicklighter (@JohnKicklighter) December 4, 2019
will it be different this time? $SPX pic.twitter.com/GGz7Xc143d
— David Cox, CMT, CFA (@DavidCoxWG) December 4, 2019
Positive action so far as buyers stepped in at support/prior resistance. $RUT $IWM pic.twitter.com/5wYYCg0AA2
— Greg Rieben (@gregrieben) December 4, 2019
US Dollar Index continues to chop around without any direction.
Bulls argue this is a consolidation phase before the continuation of a trend above 100 on the index.
Bears argue the $USD already peaked. This dead-cat bounce since March 2018 lows, is now losing momentum. pic.twitter.com/YVSTeVcCrw
— Tiho Brkan (@TihoBrkan) December 4, 2019
Its been a long year for the dollar $DXY which has gone nowhere and basically trading at the same price it was a year ago. Its now testing the 200dma for the 9th time this year and getting vulnerable for a washout to test the June lows at 95.75. FOMC next week could be a catalyst pic.twitter.com/Y6DdZT0WCm
— Adam Mancini (@AdamMancini4) December 4, 2019
FX Volatility is becoming a potential *significant* concern.
A huge list of major currencies just spiked new *all-time record lows* in implied Vol, including $EURUSD, $USDJPY, $AUDUSD, $USDCHF, $USDCAD and $NZDUSD.
Here are some of these historic charts for reference and study: pic.twitter.com/bsddDBkcO8
— Macro Charts (@MacroCharts) December 4, 2019
Don't get too excited about the 4% surge in $WTI and #Brent today. #Oil is stuck in a symmetrical triangle pattern, or #wedge pattern. A #breakout is coming, but it isn't on this bounce. As long as oil is within #resistance and #support, I'm staying #bearish. Follow the #trends. pic.twitter.com/9saBZpL0SX
— Chad Shoop, CMT (@ChadShoopGuru) December 4, 2019
1999: No warning
2007: No warning
2019: 10,588 warnings since 2013.$SPX
— Arun S. Chopra CFA CMT? (@FusionptCapital) December 4, 2019
You’re all caught up now. Thanks for reading!