Thursday, December 8th, 2022
Indices: Nasdaq 100 +1.22% | S&P 500 +0.75% | Russell 2000 +0.63% | Dow +0.55%
Sectors: 9 of the 11 sectors closed higher. Tech led, rising +1.64%. Energy lagged, falling -0.45%.
Commodities: Crude Oil futures fell -0.76% to $71.46 per barrel. Gold futures inched higher by +0.19% to $1,802 per ounce.
Currencies: The US Dollar Index fell -0.35% to $104.81.
Crypto: Bitcoin gained +2.32% to $17,230. Ethereum rose +4.48% to $1,285.
Interest Rates: The US 10-year Treasury yield rose to 3.486%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
One difference (so far) between this down trend and '01 and '08 was we have yet to see a major break below the 200-week moving average which has been excellent support on many prior market dips. pic.twitter.com/ggaN5IcORY
— Andrew Thrasher, CMT (@AndrewThrasher) December 8, 2022
Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). It’s a chart of the S&P 500 over the past 37 years, along with its 200-week moving average. As we approach the end of the year, it’s fair to say 2022 will be remembered as one of the worst years in recent history in terms of persistent weakness. Andrew points out that one major difference between 2022 and other bad years like 2001 and 2008, has been the fact that it successfully tested its rising 200-week moving average. We kissed it in September and October but never extended meaningfully below it. In both 2001 and 2008, the S&P 500 tumbled more than 30% after breaking this long-term moving average. On the other hand, most of the successful tests turned out to be great buying opportunities in hindsight.
Quote of the Day
“There are only two losses to report, loss of capital or a loss of opportunity. If we preserve the capital there will always be another opportunity.”
– Louise Yamada
Back-to-Back Monthly Surge Consolidating Gains – Almanac Trader
Jeff Hirsch examines how the S&P 500 has historically performed after back-to-back monthly gains >5%.
Sentiment Staves off Lower Readings – Bespoke
Bespoke breaks down the results of the latest sentiment surveys.
More Positive Signs for Inflation – Carson Group
Ryan Detrick highlights some signs that inflation is cooling.
— StockMKTNewz – Evan (@StockMKTNewz) December 8, 2022
Thanks to higher exposure to industrials, plus being price- not cap-weighted, granddaddy of all indices (Dow) now leads S&P 500 by 10% YTD, on track for largest annual outperformance since inception of modern version of latter in 1957
— Liz Ann Sonders (@LizAnnSonders) December 8, 2022
Dow vs S&P 500 over the last year. pic.twitter.com/VBarUJycEQ
— Eddy Elfenbein (@EddyElfenbein) December 8, 2022
Going thru charts, these 5 stood out:
1. Recent pullback is typical for early December. Tax loss harvesting often precedes Santa Claus rally, and there are plenty of tax losses to harvest. @NDR_Research 1/5 pic.twitter.com/IzS1dnAza9
— Ed Clissold (@edclissold) December 8, 2022
Well, this peaks my interest. When $SOX is leading $NDX at a potential market bottom (at least a counter-trend rally), it might pay to change your allocations a bit. This isn't rocket science. Your money needs to be working. pic.twitter.com/Gj4rYX3W2o
— Alan Cohen (@al_xdpg) December 8, 2022
Average stock > top of the market pic.twitter.com/k6fDU6647W
— Strategas (@StrategasRP) December 8, 2022
EFA trying to hold above 52-week MA and a potentially decisive relative strength move vs. US stocks. Not necessarily rushing in to buy. But FWIW for the first time in MANY years international stocks are officially on my radar. #sentimentrader pic.twitter.com/vlVw37lpgv
— Jay Kaeppel (@jaykaeppel) December 8, 2022
EM 15-year sideways resembles SPX 1968-1982. pic.twitter.com/PfF3IaJL41
— Mark Ungewitter (@mark_ungewitter) December 8, 2022
All the talks about the S&P500 testing its 200d and failing so far…
In the meantime, discreetly, CHINA is cracking it today with a GAP! pic.twitter.com/WSfccxCK4t
— conradseric, CMT, CAIA, CEFA (@conradseric) December 8, 2022
— Brian G (@alphacharts) December 8, 2022
Over the past 18 months, CVNA has doubled once and been cut in half seven times. pic.twitter.com/zjCz8rGdAg
— Willie Delwiche, CMT, CFA (@WillieDelwiche) December 8, 2022
You’re all caught up now. Thanks for reading!