We are off and running for 2022. Deja Vu the 4800 on SPX but we blew through $180 on AAPL to trade to $182.88 and get the $3 trillion market cap. Oil and natural gas both bounced. On the speculative end we saw Cryptocurrencies down again. A jump in U.S. Treasury yields helped the dollar post its largest daily gain in nearly two months, Treasury market steepening in the yield curve today driven by selling pressure at the back end. The 10-year yield rise was the largest first day jump since 2009.
Enjoy live commentary from Our Trading Room at YouTube as the day wraps up – feel free to like and share
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In today’s post market wrap live from the trading room traders discuss the patterns through the options and futures markets that have played out perfectly from last week to today. Listen to our technical and market psychology read on the day. Join the Traders Community Podcast crew @traderscom @knovawave @Mahdavi4 and @MetaJohnny1 plot out 2022.
- WTI crude futures increased by $0.76 (+1.0%) to $76.05/barrel.
- February Nymex natural gas (NGG22) closed up by +0.085 (+2.28%) after the National Weather Service on Monday said a winter storm warning is in effect from northeast Georgia to central New Jersey into Tuesday morning.
- The recent below-normal temperatures across the U.S. have boosted domestic nat-gas demand for heat as BNEF data shows lower 48-state nat-gas demand on Monday was 104.2 bcf, up +13% y/y.
- BNEF data showed gas flows to U.S. export terminals Monday were up +5.8% y/y at 12.0 bcf, modestly below the Dec 19 record of 13.1 bcf.
- The Bloomberg Dollar Spot Index climbed 0.6% erasing last weeks with its largest daily gain in nearly two months
- JPY as the strongest of the major currencies, the CAD was the weakest.
- Gold futures settled $28.50 lower (-1.6%) to $1,800.10/oz, pressured by a strong start to the year in yields and equities.
- Spot silver is down four cents or -0.19% at $23
- Dow industrial average rose 246.76 points or 0.68% at 36585.07 above its previous record close at 36488.64. High short of all-time intraday high of 36679.44
- S&P index rose 30.38 points or 0.64% at 4796.57. Its hi price reached 4796.64 above record high 4793.05. High today short of all-time record high at 4808.93
- NASDAQ index rose 187.83 points or 1.2% at 15832.80. closed higher for the first time in five sessions
- The outperformance of the Nasdaq fueled by a 13.5% gain in Tesla (TSLA 1199.78, +143.00, +13.5%), big in gains in Apple (AAPL 182.01, +4.44, +2.5%), Amazon.com (AMZN 3408.09, +73.75, +2.2%), and NVIDIA (NVDA 301.21, +7.10, +2.4%).
- Russell 2000 rose 27.24 points or 1.21% at 2272.55.
- NYSE Adv 1928 Dec 1418 Vol 845.0 mln
- Nasdaq Adv 3290 Dec 1418 Vol 4.3 bln
- Apple 179.38▲ 0.09 (0.05%)
- The obsession of Apple hitting 3 trillion market at $182.86 was achieved
- The S&P 500 has closed at 69 ATH this year, 2nd most ever only behind 77 ATHs in 1995
- However, the average S&P 500 comp is down 18% from its ATH, suggesting severe weakness underneath the surface.
- German DAX, +0.86%
- France’s CAC, +0.9%
- UK FTSE 100, Closed
- Italy’s FTSE MIB, +1.4%
- Spain’s Ibex, +0.54%
Cboe Daily Market Ratios:
S&P 500 sector watch:
- Six of the 11 S&P 500 sectors closed lower
- Energy sector (+3.1%) financials (+1.2%) and information technology (+1.2%) S&P 500 consumer discretionary sector rose +.8%,
- The materials (-1.4%), health care (-1.0%), and real estate (-1.0%) sectors each declined by at least 1.0%.
- Nasdaq Composite +1.2% YTD
- Russell 2000 +1.2% YTD
- Dow Jones Industrial Average +0.7% YTD
- S&P 500 +0.6% YTD
- In the Treasury market the 10-yr yield rose 12 basis points to 1.63%, exceeding 1.60% for the first time since the omicron variant emerged in late November. It was 10-year yield’s largest first day jump since 2009, according to Bloomberg data. The yield on the 30-year bond increased as much as 12 basis points to top 2.0%, The 2-yr yield rose six basis points to 0.79%. the rate surpassed 0.80%, its highest level since March 2020.
- Total construction spending increased 0.4% month-over-month in November (Briefing.com consensus +0.6%) following an upwardly revised 0.4% increase (from 0.2%) in October. Total private construction increased 0.6% month-over-month while total public construction spending decreased 0.2%. On a year-over-year basis, total construction spending was up 9.3%.
- The preliminary December IHS Markit Manufacturing PMI decreased to 57.7 from a revised final reading of 58.3 (from 57.8) in November.
Into The Vortex – EIA Reports -136 Bcf Draw in Natural Gas Storage – TRADERS COMMUNITY
Heading into Christmas and cold temperatures around us gas withdrawal season is in swing. While in Europe natural gas futures are back to near all-time highs again US natural gas futures are softer reacting to domestic weather models. Last week EIA reported a draw of -136 Bcf of working gas in storage lower than expected. With the global energy crisis LNG exports continue to grow but we balance supply shortages with deliverability.
Trust you all had a great day, sleep well and get your trading plan sorted.
Any questions please feel free to ask them below. Trade Smart!