Market Wrap – Market Breadth, Understanding Market Vega and Premia Capture

In today’s post market wrap live from the Meta trading room traders discussed US stock, options and futures markets with the continuation in the recovery from Monday’s selloff. Listen to our technical and market psychology read on the day. Around the table today we talk about recognizing market breadth, understanding PM, hedge fund IB Vega after sharp selloffs and holiday premia capture with @Mayhem4Markets @Mahdavi4 and @MetaJohnny1

Live on YouTube:

Enjoy live commentary from Our Trading Room at YouTube as the day wraps up – feel free to like and share

Market Closes

  • WTI crude futures rose $1.66, or 2.3%, to $72.77/bbl.
  • U.S. Dollar was mostly weaker with commodity currencies led by the New Zealand and Australia dollar higher. 
  • U.S. Dollar Index decreased -0.4% to $96.11.
  • Gold futures settled $13.50 higher (+0.8%) to $1,802.20/oz
  • Dow industrial average rose 261.20 points or 0.74% of 35753.88
  • S&P index rose 47.33 points or 1.02% to 4696.55
  • NASDAQ index rose 180.82 points or 1.18% 15521.90
  • Russell 2000 rose 18.95 points or 0.86% at 2221.90
  • NYSEAdv 2442 Dec 843 Vol 715.4 mln
  • NasdaqAdv 2748 Dec 1805 Vol 3.99 bln
  • Apple $171.62 -$7.62 -4.26%
  • German DAX, +0.8%
  • France’s CAC, +1.1%
  • UK’s FTSE 100 +0.4%
  • Spain’s Ibex +0.8%
  • Italy’s FTSE MIB +0.5%

Cboe Daily Market Ratios:

Cboe Daily Market Statistics

S&P 500 sector watch:

  • All 11 S&P 500 sectors closed higher.
  • Led by consumer discretionary sector (+1.7%), 8 of the remaining ten groups recorded gains of under 1.0%. Top-weighted technology (+1.3%), industrials (+0.3%) and utilities (+0.4%) finished at the bottom of the leaderboard.
  • The discretionary sector drew support from gains in most components, though Tesla (TSLA 1008.87, +70.34, +7.5%) outperformance led. 

Markets YTD

  • S&P 500 +25.0% YTD
  • Nasdaq Composite +20.4% YTD
  • Dow Jones Industrial Average +16.8% YTD
  • Russell 2000 +12.5% YTD

Bonds

In the Treasury market the 10-yr yield slipped three basis points to 1.46%. Yesterday Strong U.S. 20-year Treasury Bond Auction with High Yield of 1.942%

News Highlights

Around The Barrel – US Crude SPR Storage Fell to Lowest Since Nov 2002 Last Week

WTI Oil futures have rallied back from the recent dump. Last week EIA reporting US Crude stocks in SPR fell to lowest since Nov 2002. Last Week crude drew -4715Kbbl (incl +1463kbbl build at Cushing). Gasoline stocks grew +5533kbbl. Utilization fell -.2% to 89.6%. Production 100k to 11,600 kbpd.

US Existing Home Sales Rise +1.9% in November Ahead of Expected Mortgage Rates Rise – TRADERS COMMUNITY

November US existing home sales from the National Association of Realtors rose 1.9% to 6.34 million below market forecasts of 6.52 million. Pressure coming from the supply of existing homes for which is at 2.1 months vs 2.4 month prior. Higher rates is creating affordability pressures for prospective buyers.

US Weekly IPO and SPAC Monitor: Cybersecurity, Cannabidiol and Psychedelics, Cancer and Pregnancy Therapeutics. – TRADERS COMMUNITY

Coming into Year end the IPO market is winding down. This week we have just four IPOs scheduled to raise around $50 million for the week. Cerberus Cyber Sentinel (CISO), Incannex Healthcare (IXHL), Intensity Therapeutics (INTS) and Nuvo Group (NUVO) are expected to debut this week.

Into The Vortex – Natural Gas Outlook For Christmas – 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 -88Bcf of working gas in storage as expected. With the global energy crisis LNG exports continue to grow but we balance supply shortages with deliverability.

Tomorrow US Data Watch

08:30 

  • November Personal Income (consensus 0.5%; prior 0.5%),
  • Personal Spending (consensus 0.6%; prior 1.3%),
  • PCE Prices (prior 0.6%), Core PCE Prices (consensus 0.4%; prior 0.6%),
  • Weekly Initial Claims (consensus 206,000; prior 206,000),
  • Continuing Claims (prior 1.845 mln),
  • November Durable Orders (consensus 1.5%; prior -0.5%),
  • Durable Orders -ex transportation (consensus 0.6%; prior 0.5%)

10:00

  • November New Home Sales (consensus 770,000; prior 745,000)
  • Final December University of Michigan Consumer Sentiment survey (consensus 70.4; prior 70.4)

10:30

Thursday Earnings Include

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!