Daily Market Update for 12/24
Trend lines drawn from the 10/30 bottom (39d), 12/18 (5d) and today 12/24 (1d).
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or and corrected inline in my blog.
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Thursday, December 24, 2020
Have yourself a merry little Christmas
Facts: +0.26%, Volume lower, Closing range: 56%, Body: 20%
Good: Stayed within tight range, despite bad news on stimulus
Bad: Not much
Highs/Lows: Lower high, higher low
Candle: Inside day, thing body in middle of candle counts for an indecisive session
Advance/Decline: 0.95, about even advancing and declining stocks
Sectors: Real Estate (XLRE +0.98%) and Utilities (XLU +0.71%) were top. Energy (XLE -0.52) was the worst performing, the only losing sector.
Expectation: Sideways
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Market Overview
Merry Christmas Eve! The shortened session for the Nasdaq was mostly indecisive with the close just above the open and about an even amount of advancing and declining stocks. Investors didn't seem to worried with bad news around the stimulus, possibly helped by good news from Europe on a Brexit deal. The index closed with a +0.26% gain with a 56% closing range and a 20% green body in the middle of the candle. The volume was lower as expected.
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Indexes and Sectors
The S&P 500 (SPX +0.35%) and Dow Jones Industrial (+0.23%) both finished with gains. Both had inside days where the high and low are within the high and low of the previous day. The Russell 2000 (RUT -0.16%) lost ground for the day, but only after setting another new all-time high.
Real Estate (XLRE +0.98%) and Utilities (XLU +0.71%) were the top performing sectors. Technology (XLK +0.66%) was leading most of the session. Real Estate and Utilities gained the lead near the end of the session as defensive plays heading into a long weekend. Energy (XLE -0.52) was the worst performing sector, the only losing sector for the day.
The VIX volatility index declined -7.64%. The VIX declined that last three sessions since a huge spike on Monday.
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Market Indicators
Yields on the US 30y and 10y treasury bonds dropped for the day while the 2y treasury bond yields rose. The yield spreads tightened slightly between long term and short term bonds
Corporate bond prices rose again with the HYG now its highest point since early March. Corporate bonds rose faster than short term bonds, tightening the yield spread between the two.
The US dollar (DXY -0.10%) dropped for the day.
Silver (SILVER +1.14%) and Gold (GOLD +0.34%) rose for the day. Crude Oil futures (CRUDEOIL1! -0.34%) pulled back a bit. Timber (WOOD +0.17%) rose for a third day. Copper (COPPER1! -+0.85%) and (ALI1! +0.51%) both gained.
The put/call ratio rose to 0.670, a much more comfortable level. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. As it approaches 0.60 (overly bullish) and below, watch for a possible pullback in the market.
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Market Leaders
Apple (AAPL +0.77%), Microsoft (MSFT +0.58%), Alphabet (GOOGL +0.34%) gained for the day while Amazon (AMZN -0.39%) dropped. Amazon closed blow its 21d EMA, just above the 50d MA. Alphabet continues to trade in-between the two key moving averages.
Tesla (TSLA +2.44%), Taiwan Semiconductor (TSM +2.13%), Mastercard (MA +2.06%), and Visa (V +1.66%) were the best performing mega-caps of the day. Alibaba (BABA -13.34%) sold off after China opens an antitrust investigation against the company.
Growth stocks had a mediocre day. Some stocks such as Cloudflare (NET +3.76%) and Digital Turbine (APPS +3.02%) did well while Draftkings (DKNG =3.30%), Fastly (FSLY -3.11%) and SNAP (SNAP (-3.07%) did not fare as well.
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Looking ahead
Markets are closed on Friday.
Monday will bring data on speculative positions in commodities, showing investor sentiment for each.
No notable earnings announcements are scheduled for Monday.
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Trends, Support and Resistance
The long trend-line from the 10/30 bottom points to a +1.09% gain. The five-day trend line points to a smaller +0.43% gain.
The one-day trend line is pointing to a -0.77% loss.
The market is a bit tentative after a indecisive shortened session. If there is more downside, then there seems to be a new support level from 12,450 to 12,550 where the index can pause during a pullback. The previous support level is around 12,250.
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Wrap-up
I'm looking forward to a long weekend and enjoying the holidays with family. I hope you all find the time to rest and enjoy the holidays however makes you peaceful and happy.
Stay healthy and take care!
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or and corrected inline in my blog.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Thursday, December 24, 2020
Have yourself a merry little Christmas
Facts: +0.26%, Volume lower, Closing range: 56%, Body: 20%
Good: Stayed within tight range, despite bad news on stimulus
Bad: Not much
Highs/Lows: Lower high, higher low
Candle: Inside day, thing body in middle of candle counts for an indecisive session
Advance/Decline: 0.95, about even advancing and declining stocks
Sectors: Real Estate (XLRE +0.98%) and Utilities (XLU +0.71%) were top. Energy (XLE -0.52) was the worst performing, the only losing sector.
Expectation: Sideways
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Merry Christmas Eve! The shortened session for the Nasdaq was mostly indecisive with the close just above the open and about an even amount of advancing and declining stocks. Investors didn't seem to worried with bad news around the stimulus, possibly helped by good news from Europe on a Brexit deal. The index closed with a +0.26% gain with a 56% closing range and a 20% green body in the middle of the candle. The volume was lower as expected.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Indexes and Sectors
The S&P 500 (SPX +0.35%) and Dow Jones Industrial (+0.23%) both finished with gains. Both had inside days where the high and low are within the high and low of the previous day. The Russell 2000 (RUT -0.16%) lost ground for the day, but only after setting another new all-time high.
Real Estate (XLRE +0.98%) and Utilities (XLU +0.71%) were the top performing sectors. Technology (XLK +0.66%) was leading most of the session. Real Estate and Utilities gained the lead near the end of the session as defensive plays heading into a long weekend. Energy (XLE -0.52) was the worst performing sector, the only losing sector for the day.
The VIX volatility index declined -7.64%. The VIX declined that last three sessions since a huge spike on Monday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Indicators
Yields on the US 30y and 10y treasury bonds dropped for the day while the 2y treasury bond yields rose. The yield spreads tightened slightly between long term and short term bonds
Corporate bond prices rose again with the HYG now its highest point since early March. Corporate bonds rose faster than short term bonds, tightening the yield spread between the two.
The US dollar (DXY -0.10%) dropped for the day.
Silver (SILVER +1.14%) and Gold (GOLD +0.34%) rose for the day. Crude Oil futures (CRUDEOIL1! -0.34%) pulled back a bit. Timber (WOOD +0.17%) rose for a third day. Copper (COPPER1! -+0.85%) and (ALI1! +0.51%) both gained.
The put/call ratio rose to 0.670, a much more comfortable level. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. As it approaches 0.60 (overly bullish) and below, watch for a possible pullback in the market.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Leaders
Apple (AAPL +0.77%), Microsoft (MSFT +0.58%), Alphabet (GOOGL +0.34%) gained for the day while Amazon (AMZN -0.39%) dropped. Amazon closed blow its 21d EMA, just above the 50d MA. Alphabet continues to trade in-between the two key moving averages.
Tesla (TSLA +2.44%), Taiwan Semiconductor (TSM +2.13%), Mastercard (MA +2.06%), and Visa (V +1.66%) were the best performing mega-caps of the day. Alibaba (BABA -13.34%) sold off after China opens an antitrust investigation against the company.
Growth stocks had a mediocre day. Some stocks such as Cloudflare (NET +3.76%) and Digital Turbine (APPS +3.02%) did well while Draftkings (DKNG =3.30%), Fastly (FSLY -3.11%) and SNAP (SNAP (-3.07%) did not fare as well.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
Markets are closed on Friday.
Monday will bring data on speculative positions in commodities, showing investor sentiment for each.
No notable earnings announcements are scheduled for Monday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support and Resistance
The long trend-line from the 10/30 bottom points to a +1.09% gain. The five-day trend line points to a smaller +0.43% gain.
The one-day trend line is pointing to a -0.77% loss.
The market is a bit tentative after a indecisive shortened session. If there is more downside, then there seems to be a new support level from 12,450 to 12,550 where the index can pause during a pullback. The previous support level is around 12,250.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
I'm looking forward to a long weekend and enjoying the holidays with family. I hope you all find the time to rest and enjoy the holidays however makes you peaceful and happy.
Stay healthy and take care!
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