Market Wrap – Santa Claus Rally Powers on After Christmas

The markets carried on with Christmas cheer with the Santa rally powering ahead. Today traditionally is the start of the Santa Claus rally period, (the last five trading days of year and first two of the new year). Both oil and natural gas motored ahead. In today’s post market wrap live from the Meta 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 @Mayhem4Markets @abcdefg64668024 @Mahdavi4 and @MetaJohnny1 plot out the rest of 2021.

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 settled higher by 2.3%, or $1.71, to $75.56/bbl.
  • U.S. Dollar was mostly higher, U.S. Dollar Index increased 0.1% to 96.08
  • Gold settled $2.90 lower (-0.2%) to $1,808.80/oz ending last week’s winning streak.
  • Silver futures Mar (H) settled today’s session up +.049 23.030
  • Dow industrial average +351.82 at 36302.38
  • S&P index +65.40 at 4791.19 a closing record high
  • NASDAQ index +217.89 at 15871.25
  • Russell 2000 index 2,261.46 +19.88 +0.89%
  • NYSE Adv 2204 Dec 1068 Vol 615.6 mln
  • Nasdaq Adv 2373 Dec 2279 Vol 3.7 bln
  • Apple 180.33▲ 4.05 (+2.30%)
  • The obsession remains the price of Apple for 3 trillion market is $182.86
  • The S&P 500 closed today at the 69th 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, +0.5%
  • France’s CAC, +0.75%
  • UK FTSE 100, closed
  • Spain’s Ibex, +0.7%
  • Italy’s FTSE MIB, +080%

Cboe Daily Market Ratios:

Cboe Daily Market Statistics

S&P 500 sector watch:

  • All 11 S&P 500 closed higher
  • Information technology (+2.1%), energy (+2.2%), and real estate (+2.1%) sectors with gains over 2.0%.
  • The utilities sector underperformed on a relative basis with a 0.5% gain.

Markets YTD

  • S&P 500 +27.6% YTD
  • Nasdaq Composite +23.1% YTD
  • Dow Jones Industrial Average +18.6% YTD
  • Russell 2000 +14.5% YTD

Bonds

In the Treasury market U.S. Treasuries settled mixed with a trace of curve-flattening activity. The 2-yr yield increased one basis point to 0.70% while the 10-yr yield decreased one basis point to 1.48%.

News Highlights

Around The Barrel – Crude Oil and Gasoline Outlook – TRADERS COMMUNITY

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.

Into The Vortex – Natural Gas Storage Outlook – 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 -55 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.

Looking ahead:

FHFA Housing Price Index for October, S&P Case-Shiller Home Price Index for October and API Crude Oil Storage will be released on Tuesday.

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!