Top of the morning Stockaholics! Happy Hump Day to all of you and welcome to the new trading day and a frrrrrrrrrrrresh start. Here is a quick check on those futures as we are over an hour from the US cash market open. GLTA on this Wednesday, December the 20th, 2023!
Good Wednesday morning Stockaholics! Here is this morning's pre-market news thread for those of you wanting to get a quick read before today's open- <-- click there to read! Hope everyone has a great new trading day ahead!
Here are some earnings results from this morning and those reporting after the close today: ==========================================================================
Morning Lineup - 12/20/23 - Perfect Ten? Wed, Dec 20, 2023 It's finally starting to get colder here in the northeast, and that coupled with the shorter days quickly makes us miss the warmer weather and longer days of the summer. While the temperature is likely to only get colder from here in the coming weeks, if there's any consolation, tomorrow is the shortest day of the year which means that the days only get longer from there. Applying the forward-looking nature of the market, winter is over! Traders are coming in today to the warmth of red on their screens as equity futures and treasury yields are both lower. On the economic calendar, we'll get Existing Home Sales and Consumer Confidence at 10 AM. On the earnings front, the notable reports since yesterday's close were FedEx (FDX) and General Mills (GIS). Both stocks are trading lower in reaction to their results after management from each company lowered guidance. FDX is getting hit the hardest, though, as the stock is down over 10% and GIS is down 4%. If the declines in FDX hold through the close, it will be the stock's worst earnings reaction day performance since December 2019. Like the warmth of summer, it’s hard to fully appreciate a rally without first going through some weakness, and that made the late summer/early fall correction the perfect prelude to the current year-end rally. Heading into today, the Nasdaq has seen nine straight days of gains which is the longest losing streak since – wait for it – November 8th. That’s right. Since the October lows, the Nasdaq has now had two separate nine-day winning streaks. To find a time when there were two winning streaks of nine or more days in closer proximity to each other, you have to go back to 1979! In the history of the Nasdaq dating back to 1971, it has had 48 different winning streaks of at least nine days. While they aren’t particularly uncommon, what makes the current streak a little more unique is that it has also come as the Nasdaq closed at overbought levels (1+ standard deviation above 50-DMA) on each day of the winning streak. Of the 48 prior streaks, only 16 shared that same trait with the current streak. In today's Morning Lineup, we provided an analysis of the Nasdaq's performance following prior nine-day winning streaks along with nine-day winning streaks that occurred when the index closed at overbought levels on each day of the streak.
And finally here are this morning's gappers up & down: Have a great trading Wednesday to all. Gapping Up Gapping Down
Finally a pullback I was expecting a pullback like this would happen in January next year but I guess the market needs a breather here since we pretty much didn't see any red day lately lol. Today is a pretty big setback for those of us who think the SPX will make a new ATH before EOY
Mega tech names are a little weak lately, my thinking is they might see some selling in January too and traders might chase some small cap names instead especially if the bonds yields continue to move lower in early 2024, we will see
Hopefully CRSP goes up tomorrow. I would like to get into Paramount also. Berkshare etc. Looks interesting alot of amazing companies out there. I see more green days by EOY.
hey just a quick heads up for those of you who don't venture outside of this thread much. i'm going to be running a portfolio challenge for the community here for the new year. if interested, check out the thread linked below! https://stockaholics.net/threads/stockaholics-2024-portfolio-challenge.13084/ <-- click that link there would be awesome to see some participating on this as it did take me a bit to set it all up haha.
here's a quick update on the 7-day SCR (santa claus rally) period for those curious where that stands after today's close: this will officially conclude at market close on jan. 3rd. hard to believe tomorrow wraps up the final trade day of the year.
...and that's a wrap to the 2023 trading year! will admit, i was entirely a non-participant of the market this year. but should be a little more active in the new year. looking forward to it. HNY guys!!
HNY all Bought some beaten down names such as PFE and ILMN and hope they will get some buying in early January, XLU is the worst performing sector this year and let's see if it will get an early bounce next year. Didn't really buy any tech stock since late December, want to see if they will get some buying in early January first or we will see some profit taking after a big year for them
Looks like utility, healthcare and staples had a good day, those sectors underperformed especially against tech last year, not too surprising to see those sectors getting some love early on this year, in early January we tend to see the beaten down stocks getting some love rather than people continue to chase for those big winners from last year. Also I suspect we might continue to see some short term selling in tech stocks due to tax reason, those who want to delay paying capital gain taxes for another year would be selling now rather than in December 2023.
whelp tomorrow is officially the final trading day for the SCR (santa claus rally) period. here's where it stands after today's close: will admit, i don't put a lot into what the SCR does. it's kinda something interesting to talk about at family dinner tables i guess. i know some like to think that so goes the santa rally, so goes the rest of the year. maybe, as per this chart from the carson group. while 4 of the past 6 down SCR's did see the full calendar year down in the market. and 5 of the past 6 saw january down pretty significantly. i think the january barometer (full month performance for jan.) is maybe more important. but, we'll see how this all pans out nevertheless...
