Market Wrap – Santa Claus Rally Stumbles as Crypto Bleeds Out

The markets stumbled today as mega caps MSFT and AAPL fell moderately. On the speculative end we saw Cryptocurrencies fall sharply over the last 24 hours, Bitcoin down -6.93%, Ethereum -6.62%, Solano -9.71% and Cardano -8.39%. The Russell 2000 accordingly was the weakest major index −13.73 (-0.61%). Oil closed higher with natural gas not recovering from its sharp fall.

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

Live on YouTube:

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 @Mayhem4Markets @abcdefg64668024 @Mahdavi4 and @MetaJohnny1 plot out the rest of 2021.

Market Closes

  • WTI crude futures increased 0.6%, or $0.45, to $76.01/bbl.
  • U.S. Dollar was mostly higher, U.S. Dollar Index increased 0.1% to 96.14
  • JPY as the strongest of the major currencies, the CAD was the weakest.
  • Gold futures settled $2.10 higher (+0.1%) to $1,810.90/oz, finishing up for the third time in the last four trading sessions, topping out near mid-November highs.
  • Spot silver is down four cents or -0.19% at $23
  • Dow industrial average rose 95.83 points or 0.26% at 36398.22, up for 5 consecutive days
  • S&P index fell -4.84 points or -0.10% at 4786.34, after new intraday high at 4807.02. It snapped a four-day win streak
  • NASDAQ index fell 89.53 points or -0.56% at 15781.73, snapped its 4-day win streak
  • Russell 2000 fell -14.95 points or -0.66% at 2246.50
  • NYSE Adv 1534 Dec 1718 Vol 568.4 mln
  • Nasdaq Adv 1582 Dec 2993 Vol 3.6 bln
  • Apple 179.29 ▼ 1.04 (▼ 0.58%)
  • 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:

  • Seven of the 11 S&P 500 sectors closed higher
  • The utilities sector (+0.9%) after the utilities sector underperformed on a relative basis with a 0.5% gain.
  • The information technology sector (-0.6%) after it ed the market higher yesterday

Markets YTD

  • S&P 500 +27.4% YTD
  • Nasdaq Composite +22.5% YTD
  • Dow Jones Industrial Average +18.9% YTD
  • Russell 2000 +13.8% YTD

Bonds

In the Treasury market the 2-yr yield rose five basis points to 0.75% while the 10-yr yield settled unchanged at 1.48% after trading at 1.46% intraday.

News Highlights

  • The S&P Case-Shiller Home Price Index increased 18.4% yr/yr in October (Briefing.com consensus 18.7%) following a 19.1% yr/yr increase in September.  
  • The FHFA Housing Price Index increased 1.1% m/m in October following a 0.9% increase in September.

Tencent’s Riot Games Pays $US100 million in Gender Discrimination Case – TRADERS COMMUNITY

Game maker Riot Games, the video game maker said on Monday evening agreed to pay $US100 million to settle a gender discrimination suit with more than 2000 current and former female employees. The class-action lawsuit was filed in 2018 than in early 2020, two California employment agencies intervened to block the settlement, arguing that the women could be entitled to more than $US400 million.

Iron Ore Prices Rise Pre-emptively on Easing Along China’s Property Curve – TRADERS COMMUNITY

Iron ore had the bears out in full force just a month or so ago, with the China attempt to “destroy Australia”, the shipping crisis and more. Analysts were anticipating demand for iron ore to collapse as China reduced its steel production. Targets were lowered to US$65 to $85 a tonne by many of the larger groups.  Here we are the most actively traded iron ore futures on the Dalian Commodity Exchange for May delivery closed 3.9% higher at 714 yuan ($112.11) per tonne, jumping 5% this week.

Drewry World Container Index 119% Higher Year on Year – TRADERS COMMUNITY

Drewry’s composite World Container Index is up 119% year on year and increased marginally to $9,304.05 per 40ft container heading into Christmas. The Baltic Exchange Dry Index fell for the eleventh session on Thursday, as weaker capesize rates overshadowed gains in the panamax vessel segment.

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:

Pending Home Sales for November, the weekly MBA Mortgage Applications Index, and the Advance November reports for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories plus EIA Crude Oil Storage will be released on Wednesday.

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!