Thursday, December 30th, 2021
Indices: Dow -0.25% | S&P 500 -0.30% | Nasdaq -0.16% | Russell 2000 -0.02%
Sectors: 4 of the 11 sectors closed higher. Real Estate led, gaining 0.45%. Technology lagged, falling 0.66%.
Commodities: Crude Oil futures moved higher for the seventh consecutive day, rising 0.56% to $76.99 per barrel. Gold futures rose 0.46% to $1,814 per ounce.
Currencies: The US Dollar Index gained 0.12%.
Interest Rates: The US 10-year Treasury yield fell to 1.512%.
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 by Jeff Hirsch (@AlmanacTrader). The table shows the performance of the four major indices on the last trading day of the year over the past two decades. Jeff points out that the last trading day of the year (tomorrow) has historically been the worst-performing day within the 7-day Santa Claus Rally. The Nasdaq and the Russell 2000 have performed the worst, closing higher less than a third of the time. The Dow and S&P have fared slightly better, but they’ve still closed lower the majority of the time. While average returns were negative across the board, they really weren’t that bad. One day in the grand scheme of things is pretty insignificant, so we shouldn’t read too far into this. But it will be interesting to see whether or not history repeats itself tomorrow. Click here to read the full note.
Quote of the Day
“I cannot teach anybody anything.
I can only make them think”
These Stocks are Built Different – All Star Charts
JC Parets highlights a couple of stocks that look poised to move higher – $CUBI and $MPC.
Three Groups to Watch Within the Material Sector – StockCharts.com
Julius de Kempenaer takes a look at the strongest groups within the materials sector.
The Bearish Breadth Case is Getting Harder to Make – Potomac Fund Management
Dan Russo shares his weekly breadth analysis.
Bulls Bounce Back – Bespoke
Bespoke breaks down the results of the latest AAII sentiment survey.
2021 IPO Boom & Bust – Arun Chopra
In case you missed it, here’s an epic thread from Arun Chopra on the dangers of buying high-profile IPOs when they first debut.
Here's what happened after previous 7 quarter S&P 500 win streaks (like we are about to have).
Higher 100% of time 2 quarters later probably would surprise most.
Bottom line, long win streaks rarely end right away and they usually open the door to continued higher prices. pic.twitter.com/vVslvp3vX0
— Ryan Detrick, CMT (@RyanDetrick) December 30, 2021
Another day of sideways action during a holiday week as new highs slightly outpace new lows. It’s a choppy market and that requires diligent entries and tight stops until a direction gets rolling. Net highs in the bottom panel. pic.twitter.com/4kuH2iu0Nt
— Matt Caruso, CFA, CMT (@Trader_mcaruso) December 30, 2021
A few days of consolidation and sideways action is perfectly normal and healthy.
The market has broken out. It would be nice if the $QQQ could follow suit from its own sideways range. pic.twitter.com/Ij1X3etbUH
— Sam McCallum 🏴 (@honeystocks1) December 30, 2021
"only 5 stocks are driving this market" pic.twitter.com/jXFBTYTOcd
— J.C. Parets (@allstarcharts) December 30, 2021
Over the last 10 years, cap weighting has generally been superior, but it wasn't as pronounced as I thought it might be in the S&P 500; in the Nas 100, however, it was a huge difference pic.twitter.com/sfaHeQLhog
— Lawrence Hamtil (@lhamtil) December 30, 2021
— Grant Hawkridge (@granthawkridge) December 30, 2021
— Steven Strazza (@sstrazza) December 30, 2021
— Alfonso Depablos (@AlfCharts) December 30, 2021
Home Test Kit Battle – Choose your fighter: pic.twitter.com/QgtmtXEryJ
— Dan Russo, CMT (@DanRusso_CMT) December 30, 2021
who says there's no humor in finance pic.twitter.com/onXXy7CIuY
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) December 30, 2021
You’re all caught up now. Thanks for reading!