Friday, December 31st, 2021
Indices: Dow -0.16%| S&P 500 -0.26%| Nasdaq -0.61%| Russell 2000 -0.15%
Sectors: 6 of the 11 sectors closed higher. Consumer Staples led, gaining 0.68%. Communications lagged, falling 1.38%.
Commodities: Crude Oil futures snapped a 7-day winning streak, falling 2.31% to $75.21 per barrel. Gold futures rose 0.80% to $1,829 per ounce.
Currencies: The US Dollar Index fell 0.34%.
Interest Rates: The US 10-year Treasury yield inched higher to 1.514%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Keith Lerner. The S&P 500 just closed out its best year since 2019, rising 28.79% (including dividends). Gains of this magnitude are rare. Prior to this year, the S&P 500 has gained 25% or more just 17 times since 1950. The table shows all the years that followed gains of 25% or more. The following year was positive 82% of the time for a solid average gain of 14%. Of course, anything can happen in 2022. But, as we look toward the new year it’s important to consider that outsized gains have historically been followed by further gains more often than not. Click here to read the full article.
Quote of the Day
“An optimist stays up until midnight to see the new year in.
A pessimist stays up to make sure the old year leaves.”
-William E. Vaughan
Charts of the Year – LPL Financial Research
In case you missed it, here’s a great summary of this year in charts.
Buying Weakness in Market Leaders – All Star Charts
Steve Strazza highlights a bunch of stocks that are rebounding off their December lows and look poised to continue higher.
The Median Stock Trailed the Index in 2021. That’s Normal – Means to a Trend
Austin Harrison reviews market breadth in 2021.
Defense is the Name of the Game Despite Record Highs – Potomac Fund Management
Dan Russo takes a look at some important ratio charts.
Financials and Energy Should Do Well in a Rising Rates Environment – BNN Bloomberg
In this quick clip, JC Parets shares his thoughts on the past year and his outlook going forward.
— Tom (@TradingThomas3) December 30, 2021
Today also marks the end of Q4 and December.$SPX up 7 straight quarters – longest quarterly win streak in 4 years.$SPX also on pace for its best December since 2010. It's up for the 3rd straight December too.
— Robert Hum (@HumOnTheMarkets) December 31, 2021
The S&P 500 ends the year up 28.7% (total return).
It has finished higher in 12 out of the last 13 years and 17 out of the last 19.
Over the last 3 years, the S&P 500 has more than doubled (+100%), its highest 3-year return since 1997-1999.
Happy New Year! pic.twitter.com/J6KxHFc1rp
— Charlie Bilello (@charliebilello) December 31, 2021
— Michael Turvey (@MikeTurvey_TDA) December 31, 2021
We are closing out the last week of 2021 and next week has a precedence of averaging the best performance of the entire year with the $SPX. This is what I expect going into the open of the new year: https://t.co/xWyQi3c0FD pic.twitter.com/i7gOduX6FT
— John Kicklighter (@JohnKicklighter) December 31, 2021
2021 was an extremely precise year for seasonality in $SPX, timing most the major pivots. Final bull seasonal phase of the year started mid-Dec & played out cue
Next up. If 2022 tracks, its bullish until next weak phase from Jan 12-25th with January being red 12 of last 21 years https://t.co/85SvOhzhjp
— Adam Mancini (@AdamMancini4) December 31, 2021
$IWM $RUT I know smallcaps are a conundrum given its recent price movement, but looking at this monthly chart it doesn't seem so strange. Consolidation is quite normal after such a crazy runup. pic.twitter.com/rp6fTYvoVy
— Jonathan Harrier, CMT (@jonathanharrier) December 31, 2021
— Grant Hawkridge (@granthawkridge) December 31, 2021
As good as it was for stocks in 2021, it was just as bad for bonds.
In fact, this will be only the fourth time in history the Agg has been negative. pic.twitter.com/CApyRE4Fqg
— Ryan Detrick, CMT (@RyanDetrick) December 31, 2021
Bitcoin ends on the low of the quarter. pic.twitter.com/QLMCp9hQoz
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) December 31, 2021
Bitcoin is down nearly 30% from its record. Historically, including the most recent pullback this past summer, past drawdowns have been far larger.
Read more in tonight's Closer: https://t.co/5QqTxzwAg7 pic.twitter.com/LXXrFvrdK7
— Bespoke (@bespokeinvest) December 30, 2021
2021 was fun pic.twitter.com/Yr6Ztwt7Qr
— Ian McMillan, CMT (@the_chart_life) December 29, 2021
Thank you for reading & have a happy New Year!