Sponsored By:
Today’s Summary
Tuesday, December 28th, 2021
Indices: Dow +0.26% | S&P 500 -0.10% | Nasdaq -0.56% | Russell 2000 -0.66%
Sectors: 7 of the 11 sectors closed higher. Utilities led, gaining 0.90%. Tech lagged, falling 0.52%.
Commodities: Crude Oil futures rose 0.54% to $75.98 per barrel. Gold futures inched higher by 0.12% $1,811 per ounce.
Currencies: The US Dollar Index inched higher by 0.09%.
Interest Rates: The US 10-year Treasury yield rose to 1.484%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The idea that lower volume rallies are not reliable is oddly prevalent. But look and learn for yourself. This @trendspider chart for $QQQ includes a 20-day MA for volume which clearly trends down as the market goes up. ? pic.twitter.com/QqlNlOJMwo
— Jonathan Harrier, CMT (@jonathanharrier) December 28, 2021
Today’s Chart of the Day was shared by Jonathan Harrier (@jonathanharrier). It’s a daily candlestick chart of the Nasdaq 100 ETF, $QQQ, over the past 20 months. Stocks have rebounded nicely in the past week, however, volume has been somewhat anemic throughout the rally. Conventional wisdom would say you need volume to confirm the trend and that low volume rallies can’t be trusted. However, that idea is fairly antiquated in today’s age of high-frequency trading. Not to mention, it’s the holiday season here in the U.S., so low volume shouldn’t be a surprise. As Jonathan points out, it’s fairly common to see volume trend lower as the market recovers from pullbacks. If anything, this is perfectly normal behavior.
Quote of the Day
“Charts really are the footprint of money.”
– Fred McAllen
Top Links
Despite Gains and the Holidays, Investors are Glum – SentimenTrader
Jason Goepfert explains that investor sentiment is still cautious despite the fact that stocks are near record highs.
Technology and Defensive Sectors Lead the Way Higher – Potomac Fund Management
Dan Russo highlights the strongest/weakest sectors of the S&P 500.
Will Silver Price Reversal Bring Holiday Cheer For Bulls? – Kimble Charting Solutions
Chris Kimble takes a look at a potential reversal in Silver prices.
Bitcoin’s Long-Term Momentum Indicators Are Still Positive Despite Recent Downturn, Katie Stockton Says – Business Insider
Katie Stockton shares her technical perspective on Bitcoin.
2021 IPO Boom & Bust – Arun Chopra
Here’s an epic thread from Arun Chopra about the dangers of investing in high-profile IPOs when they first debut.
Sponsored:
TrendSpider’s End of the Year Sale is Here!
Top Tweets
Thinking ahead, consider strength begets strength, objects in motion tend to stay in motion & given start of Santa Claus rally has already exacted the typical gain for the whole of the period.
If it continues, consider 1st 5 days of January stats if >1.5% $SPX h/t @RyanDetrick pic.twitter.com/oGzzTbyWc3
— Seth Golden (@SethCL) December 28, 2021
The data over the last 5 and 10 years would suggest a bullish phase over the next few weeks.
Very easy from here to know when it wouldn't be bullish.
A failed break out is the risk off signal. $SPY $SPX $QQQ $IWM $DIA pic.twitter.com/pE4VP0KuJh— Sam McCallum ??????? (@honeystocks1) December 28, 2021
buyers defending the 2 day (WTD) VWAP today in $SPY pic.twitter.com/uc5sxbtNgs
— Brian Shannon, CMT (@alphatrends) December 28, 2021
#NQ_F, 4h
It is all about the 16666 now. pic.twitter.com/pXJHOltCEi
— Yuriy Matso (@yuriymatso) December 28, 2021
Nasdaq delivered a third day of net highs. This raises the odds for an upside breakout of this consolidation, but it occurred as the index approaches significant overheard resistance. This is the difficulty of a range bound market. Stay disciplined for quality setups pic.twitter.com/nG7zOHUHRO
— Matt Caruso, CFA, CMT (@Trader_mcaruso) December 28, 2021
$RUT takes a beating into the close pic.twitter.com/H5XyTO20r3
— Tom Hearden (@followtheh) December 28, 2021
$IWM Small caps having trouble at the 200 day moving average once again…$RUT pic.twitter.com/6J7L6w2qBh
— Greg Rieben (@gregrieben) December 28, 2021
Big spot here to push through $IWM $RUT pic.twitter.com/vG840wxNDp
— Ian McMillan, CMT (@the_chart_life) December 28, 2021
uncle warren likes it pic.twitter.com/yAqICopAkY
— J.C. Parets (@allstarcharts) December 28, 2021
No #santarally for #Bitcoin? pic.twitter.com/QwstGBRpEY
— jeroen blokland (@jsblokland) December 28, 2021
— Arun S. Chopra CFA CMT? (@FusionptCapital) December 28, 2021
You’re all caught up now. Thanks for reading!