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Long-suffering Syrians have been rejoicing in the streets after one of the world’s most brutal dictatorships suddenly crumbled in a few short weeks.

For half a century, the Assad family ruled over Syria with an iron fist, with long-documented reports of mass incarceration torture, extra-judicial killings and atrocities against their own people.

A civil war that started during the 2011 Arab Spring ravaged the country and turned it into a breeding ground for extremist group ISIS, while sparking an international proxy war and refugee crisis that saw millions displaced from their homes.

On Sunday, after 13 years of civil war that fractured the country, rebel fighters declared Damacus “liberated” in a video statement on state television, sending Syrian President Bashar al-Assad fleeing to Russia.

Video showed prisoners being freed from Assad’s notorious detention facilities, rebels and civilians were seen ransacking the presidential palace, with footage revealing his luxurious lifestyle and large car collection.

Many in the country are hopeful that Syria could finally be free, but there’s huge uncertainty over what comes next.

Here’s what we know.

What happened?

An armed rebel alliance charged across Syria over 11 days, sweeping through major cities and reigniting a conflict that had been largely static since a 2020 ceasefire agreement.

A new rebel coalition, led by the militant group Hayat Tahrir al-Sham (HTS) launched a surprise attack and took control Syria’s largest city Aleppo on November 30, a seismic move that met little resistance from the Syrian army.

Syrian and Russian jets had targeted rebels in Aleppo and Idlib but opposition forces seized a second major city of Hama and quickly advanced on Homs – the gateway to the capital Damascus.

As Homs fell, rebels encircled and marched into Damascus, declaring Assad overthrown and the city “liberated.”

Who are the rebels?

Syria’s rebel coalition is a new grouping called the “Military Operations Command.” It’s made up of various Islamist and moderate factions who, despite their differences, are united in fighting the Assad regime, ISIS and Iran-backed militias.

They’re led by Abu Mohammad al-Jolani, the head of militant group HTS, a former al Qaeda affiliate in Syria that used to go by the name Al-Nusra Front.

HTS officially cut ties with al Qaeda and has been the de facto ruler in Idlib.

But HTS is only one of numerous armed groups operating in Syria. Other groups controlling territory in the country include the Turkey-backed Syrian National Army and the Kurdish-led Syrian Democratic Forces, elements of which Turkey views as a terrorist organization.

The United States, Turkey, the United Nations and several other Western nations continue to designate HTS as a terrorist organization, and the US has placed a $10 million bounty on Jolani.

In his first public remarks since the rebel-led coup, Jolani declared victory on Sunday for the “entire Islamic nation.”

The rebel leader has sought to diminish the shadow of his extremist roots, and one commander insisted in a state TV address on Sunday that “all sects” would be protected.

But millions of Syrians, including those from minority Christian and other religious communities, remain haunted by a legacy of persecution suffered at the hands of extremist groups like al Qaeda and ISIS.

Who is Bashar al-Assad?

Assad is the second generation of an autocratic family dynasty that held power in Syria for more than five decades.

A former ophthalmologist who studied in London, Assad took power in an unopposed election following the death of his father Hafez al-Assad, who had led the Baath Party since seizing power in 1970.

Like his father, Assad tolerated little dissent and throughout the 13-year civil war, he and his forces have been accused of severe human rights violations and brutal assaults against civilians, with reports of using starvation as a weapon of war, enforced disappearances and killings, and the deliberate bombing of civilian buildings like schools and hospitals.

Among Assad’s worst atrocities was the 2013 sarin gas attack in the city Ghouta, which killed more than 1,400 people and was labeled a war crime by the then-UN Secretary General.

Assad’s notorious detention facilities were black holes where anyone deemed an opponent of the regime disappeared, with widespread reports of torture and inhumane conditions. In 2017, an Amnesty International report claimed as many as 13,000 people had been hanged from 2011 to 2015 at Saydnaya Prison.

Why did this come about and what’s next?

Rebels capitalized on a weakened government whose key allies are heavily preoccupied with other conflicts.

Russia’s grinding war in Ukraine since 2022 has sucked in manpower and resources, leaving little jets and troops for key ally Syria.

Iran has been hamstrung as its war with Israel escalated in the past year. Its main proxy Hezbollah has been decimated by Israeli attacks and airstrikes.

The anti-regime coalition is now disbanding Assad’s military, laying out its vision for a post-Assad Syria.

But experts wonder if the next phase will be a new dawn for a people strangled by a brutal autocracy – or whether sectarianism will bring a different type of authoritarian rule.

US President Joe Biden described the fall of the Assad regime as an “historic opportunity for the long-suffering people of Syria to build a better future” but cautioned it was also a moment of risk and uncertainty in the region.

Iran’s ambassador to Syria Hossein Akbari warned that the fallout from the collapse of Assad’s regime will be beyond American control and could lead to a conflict involving regional countries and Turkey.

Questions are now focused on what a new governing system in Syria would look like, and how it will work given the disparate groups and interests involved, and whether the reordering of power will only lead to further instability.

For now, Syrians across the world are celebrating the stunning and unexpected political turn that caught much of the world off guard.

This post appeared first on cnn.com

At least two people were killed and four are missing following an explosion Monday at a gas refinery near the Italian city of Florence, according to local authorities.

A further nine people were injured in the blast at the facility, which belongs to Eni, one of the largest energy companies in Italy.

A fire caused by the explosion is now under control, according to the local municipality of Calenzano.

“Eni confirms that a fire broke out this morning at the fuel depot in Calenzano,” the company said in a statement, adding that the fire was confined to a loading area and did “not affect the tank farm in any way.”

“The impacts and causes are being immediately verified,” Eni said.

The regional Department of Civil Protection issued an alert for the area within 5 kilometers (3 miles) of the explosion, warning residents to “keep windows closed and do not go near the area.”

“All of Tuscany is united in grief for the tragedy that happened today in Calenzano,” regional president Eugenio Giani said on Telegram.

The local municipality has declared two days of mourning on Monday and Tuesday.

This is a developing story and will be updated.

This post appeared first on cnn.com

Multiple formations of Chinese naval and coast guard vessels are moving in waters around the Taiwan Strait and the Western Pacific, Taiwan’s Defense Ministry said Monday, as the island braces for potential military drills by Beijing.

Taiwan’s armed forces had identified Chinese People’s Liberation Army (PLA) vessels from the Eastern, Northern, and Southern Theater Command, as well as Coast Guard vessels entering the areas, the ministry said in statement.

The military movement comes days after Taiwan President Lai Ching-te sparked Beijing’s ire by making unofficial stops in Hawaii and the US territory of Guam during a weeklong South Pacific tour, which wrapped Friday.

Chinese authorities voiced firm opposition to Lai’s trip, referring to him as a “separatist.” Lai’s trip came after the US approved new arms sales to Taiwan, which prompted China to vow “strong countermeasures.”

China’s ruling Communist Party claims the self-ruling democracy as its own territory, despite never having controlled it and views unofficial interactions between the US and Taiwan as a violation of its sovereignty.

Taiwan’s leadership rejects China’s territorial claims over it, while Beijing has vowed to “reunify” with the island and has not ruled out taking it by force.

Taiwan’s Defense Ministry on Monday also said it had started combat readiness exercises “to counter PLA activities” and remained on high alert monitoring the PLA movements.

“Any unilateral provocations could undermine Indo-Pacific peace and stability. We will address all gray zone incursions and ensure our national security,” the ministry said in a post on the social media platform X.

Larger naval deployment

Beijing has in the past used military drills to intimidate Taiwan in response to actions it views as violating its claims over the island – part of a wider trend of its increased military pressure that’s played a role in tightening the unofficial partnership between Washington and Beijing.

In May, days after Lai’s inauguration, China launched two days of large-scale military drills surrounding Taiwan in what it called “punishment” for so-called “separatist acts.” It called those drills “Joint Sword-2024A.”

China then conducted “Joint-Sword-2024B” drills in October, after Lai said during a National Day address that the island was “not subordinate” to China.

The latest military movement by China appears to differ from those two drills, the Taiwan official noted.

Instead of encircling Taiwan, Chinese naval ships appear aiming to assert control within the first island chain – a strategic chain of islands encompassing Japan, Taiwan, parts of the Philippines and Indonesia, the official added.

Taiwan’s Defense Ministry also said on Monday that the PLA had designated seven zones of reserved airspace to the east of its coastal Zhejiang and Fujian provinces, which lie to the north and northwest of Taiwan respectively.

These zones are temporarily reserved for a particular user during a set period, though other aircrafts can still pass through with permission from the controllers of the airspace, according to international aviation rules.

‘Never bow down to authoritarianism’

When asked about the vessels and airspace restrictions cited by Taiwan, Chinese Foreign Ministry spokesperson Mao Ning said Monday: “Taiwan is an integral part of China’s territory. The Taiwan issue is China’s internal affair. China will firmly safeguard its national sovereignty and territory.”

Lai made his stopovers in Hawaii and Guam during a tour to the Marshall Islands, Tuvalu, and Palau – who are among a handful of Taiwan’s remaining diplomatic allies. Such unofficial stopovers in the US are customary for Taiwan leaders.

The visit was Lai’s first to the United States since becoming president in May. The leader, who has long faced Beijing’s wrath for championing Taiwan’s sovereignty, used his travel to tout solidarity with likeminded democracies.

During his stop in Guam, Lai called on likeminded countries to “never bow down to totalitarianism.”

“I hope that all of our compatriots, no matter where you are, will make a joint commitment to continue to deepen our democracy and protect it,” Lai said in an address to members of the overseas Taiwan community, as well as Guam Governor Lou Leon Guerrero on Thursday.

Lai also had a phone call with US House of Representatives Speaker Mike Johnson during his stopover on the US territory, which houses some of the most strategically important American bases in the Pacific.

Beijing lashed out at Lai’s travel throughout last week and vowed to “take resolute and strong measures to defend our nation’s sovereignty and territorial integrity.”

This post appeared first on cnn.com

When Noah Jackson began his search for a new software engineering job at the start of 2024, there was one quality he knew he wanted in his next employer: office culture.

Jackson, 27, has spent almost his entire professional career in the post-Covid world of remote work. While many tech companies eventually brought employees back on a hybrid basis, others got rid of their leases altogether. For Jackson, all but the first nine months of his first real job involved working out of his home in San Francisco or at his company’s office, which tended to be mostly empty.

“Coming out of school, I overlooked how much work is really a part of your life and not just a box to check off,” said Jackson, who previously worked at an enterprise software company. “Being fully remote, it feels like it’s just like a thing that you have to do.” 

In May, Jackson got his wish, taking a job at Tako, a visualization search engine startup that requires employees come to the office four days a week. Tako is among a growing crop of early-stage tech companies in San Francisco attempting to return to the pre-Covid days, when startups took pride in their digs and limited their use of Zoom.

“We’re not trying to build a culture that works for everybody,” said Tako CEO Alex Rosenberg, who launched the company earlier this year. “We’re just trying to make it work for Tako.”

The recruitment success enjoyed by Tako and its peers speaks to a growing remote work fatigue, particularly in San Francisco, where housing conditions are often cramped and where a high concentration of young, ambitious techies are eager to comingle. The changing landscape also coincides with a boom in artificial intelligence that started after OpenAI’s launch of ChatGPT in late 2022. It’s one of the few areas where venture capital firms are showing an appetite for risk.

Rosenberg says he’s seeing a much more competitive real estate market in San Francisco as emerging companies duke it out for deals on office space after an extended stretch of high vacancy rates.

“When you’re trying to invent something new, it’s really hard to do that over Zoom,” said Rosenberg, whose company is run out of a coworking space in San Francisco’s Pacific Heights neighborhood, a couple miles from the downtown business districts.

Tako has been on the hunt for a bigger space, preferably in the Hayes Valley neighborhood, a hub for generative AI startups, or in downtown Jackson Square.

Overall, the San Francisco office market remains tepid, with the vacancy rate climbing to 34.9% in the third quarter from 29.4% a year ago, according to data from Cushman & Wakefield. However, AI startups OpenAI and Sierra AI accounted for two of the largest leases in the period, and the firm said, “artificial intelligence companies will continue as a driving force in the San Francisco market, fueling significant VC funding and leasing activity.”

According to Liz Hart, North America president of leasing at commercial real estate firm Newmark, tech made up 72% of all San Francisco office leasing in 2023 and 58% through the third quarter of this year.

Since the start of 2023, 62% of AI leases signed in the city have been for sublease space, Hart said, an indication of how the market has adapted since the pandemic. Rather than leasing entire floors to single companies, more offices are now being divided up to serve multiple startups, she said.

Still, office rents across the city are at their lowest since 2016, according to Newmark’s data.

“If you are talking to entrepreneurs who are just starting to scale, they’re likely taking a little bit more space than they know that they need and getting a screaming deal on it,” said Hart, who joined the firm almost 20 years ago.

How quickly the broader market bounces back depends largely on the decisions made by huge San Francisco tenants like Salesforce and Google. While Amazon, which is headquartered in Seattle, recently announced a five-day in-office requirement, most of its tech rivals have yet to implement such mandates.

Zach Tratar was able to snatch up an ideal space for his company Embra last year through sheer hustle. When his broker messaged him about a promising location, Tratar showed up 90 minutes later, beating another prospective lessee to the spot, which is by the Salesforce Tower.

“I immediately was like, ‘Cool, I’ll take it. Send me the paperwork right now,’” said Tratar, whose company is building an AI operating system. He estimates the office would likely have cost his company twice as much before the pandemic. 

Tratar said his plan from the start was to have employees come to the office four days a week, with Wednesdays reserved for remote work. 

“In-person teams have a magic to them,” Tratar said. “When one thing is going well it adds energy to the system and people get excited.”

The AI renaissance has familiar qualities for veterans of the Bay Area. The app economy that followed the launch of the iPhone in 2007 sparked a wave of investment and a flood of new companies in San Francisco and Silicon Valley. There was also the boom in social networking and, before that, the internet bubble.

“We’ve seen enormous growth in the category, but we’re really just at the beginning,” Hart said, about the current state of AI. 

However, in today’s world, companies have to earn their employees’ commutes to the office, Hart said, because of how dramatically the pandemic changed expectations.

Startups have to be thoughtful about access to public transit while also catering to people who drive. There’s also a benefit to being near restaurants and cafes.

AI startup Mithrl is offering employees commuter benefits and free meals, said CEO Vivek Adarsh. Mithrl moved into an office on San Francisco’s Market Street in July.

Adarsh started the company with his co-founder last year after finishing graduate school at the University of California, Santa Barbara. The pair moved to San Francisco for the nucleus of talent and because they believe in the future of the city, Adarsh said.

“There’s a lot of enthusiasm and energy,” Adarsh said. “People are taking more chances on the city.”

A few miles away, in the Mission District, robotics startup Medra has been in person five days a week since launching in 2022. CEO Michelle Lee said that when she speaks with her peers, many tell her that they’re thinking about switching to in-person work, but that moving away from hybrid is a difficult sell to employees who prefer the status quo.

Y-Vonne Hutchinson, a work culture expert, said when companies make drastic changes like that, “you’re eroding trust.”

Hutchison is CEO of Superessence, whose AI tool lets companies assess their cultures. She said that physical offices provide benefits for younger employees who may be looking for mentorship, growth and career opportunities.

There are limitations. A lot of people moved during the pandemic, and employers started catering to those who want to be fully remote. Being in the office for four or five days, especially in a city as expensive as San Francisco, is particularly tough for parents, people with disabilities and those with long commutes.

“You reduce your hiring pool significantly when you’re doing in person,” Hutchinson said. 

Lee recognizes the challenge and knows she’s limited in her ability to hire talent from elsewhere in the country. But she said that being in person has ultimately helped with recruiting.

In November 2023, Lee visited the website Hacker News and saw a post by a senior engineer who said he was specifically looking to work for companies with in-person cultures. Lee looked at his qualifications and said she was shocked. She called the post a “green flag” and immediately reached out.

Within a month, the prospect had joined Medra. 

“It would’ve been so difficult for us as a company to hire someone like this because we’re a small startup,” Lee said. “But part of it is there are some really amazing engineers specifically looking for in person because of that collaboration.”

This post appeared first on NBC NEWS

The markets closed with gains for the third week in a row as the key indices posted gains while extending their technical rebound. The Nifty had a trending week; it trended higher most of the week. The volatility was largely absent, but the Indices stayed quite choppy on most days except the last day, where it remained flat. The volatility stayed largely subdued; the India VIX retraced by 1.98% to 14.14 on a weekly note. The trading range stayed wider; the Nifty oscillated in an 849-point range over the past five sessions. The headline index finally closed with a net weekly gain of 546.70 points (+2.27%).

The markets have paused themselves at a crucial juncture. The Nifty has closed above the 50-DMA, which is presently at 24548. It is just a notch below the 100-DMA at 24707. This level also coincides with the 20-week MA placed at 24720 on the weekly timeframe. So, unless the Nifty closes well above 24720, we have to fairly take the zone of 24700-24750 as an immediate important resistance for the markets on a closing basis. For this technical rebound to extend, moving past and staying above 24750 would be necessary for the markets. On the other hand, the Nifty has rebounded off the 50-week MA; this level, placed at 23432, is the most crucial support for the Nifty if it has to keep the current primary trend intact.

Monday is likely to see a quiet start to the week; the levels of 24750 and 24900 are likely to act as resistance levels for the Nifty. The supports come in at 24450 and 24300 levels.

The weekly RSI is at 55.52; it is neutral and does not show any divergence against the price. The weekly MACD stays bearish and below its signal line. The PPO remains negative.

The pattern analysis of the weekly charts shows that the Nifty has completed a painful process of mean reversion. At one point, the Index was trading over 10% above the 50-week MA; the current retracement saw the Nifty testing this level a couple of weeks ago. The 50-week MA test at 23463 offered strong support, and the market rebounded from those levels. Presently, the Index has closed just below the 100-DMA and 20-week MA.

The up move after the Nifty took support at the 50-week MA has seen the Index rallying by over 1200 points. There is a possibility that Nifty may consolidate again for some time before it extends the current move. The banking and financial space is exhibiting strong relative strength. While this may continue, sectors like IT, Auto, Realty, etc., will likely show good momentum over the coming days. However, the Index is near its crucial resistance zone; this makes it necessary to guard profits at current levels. It is important that instead of chasing all up moves, the prudent thing to do would be to mindfully protect gains and stay invested in the stocks showing improvement in their relative strength. A cautious approach is advised for the coming week.


Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG shows that the Nifty Bank Index has rolled inside the leading quadrant. It is expected to relatively outperform the broader markets along with the IT, Services Sector, and Financial Services Indices that are also present in this quadrant.

The Nifty Midcap 100 index is improving relative momentum while being placed inside the weakening quadrant. The Nifty Pharma Index is also inside the weakened quadrant.

The Nifty FMCG, Auto, Energy, Commodities, and Infrastructure Indices are in the lagging quadrant. The Nifty PSE Index is also in the lagging quadrant; however, it is improving its relative momentum against the broader markets.

The Nifty Media Index has rolled back inside the improving quadrant. Besides this, the Metal, Realty, and PSU Bank Indices are also placed inside the improving quadrant.


Important Note: RRG charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  


Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

Growth vs. Value Rotation: The Pendulum Swings Again

Relative Rotation Graphs (RRG) are not just good tools to use in analyzing sector rotation; they’re also a valuable means for visualizing other market dynamics. The relationships between growth and value stocks, or large-cap vs. mid- and small-cap stocks and the combination of these two breakdowns of the market, are prime examples.

The pure growth-value rotation, as shown in the RRG above, tells an interesting story.

Value had its moment in the sun from August to early October, but the tides have turned since then. Around the week ending Sept 27, the value tail started to roll over while still inside the improving quadrant, while the growth tail did the opposite inside the weakening quadrant. Essentially, these signaled the end of a temporary countertrend move.

Now, it’s clear that growth is once again beating value.

Size Matters: Small- and Mid-Caps Take Center Stage

When we add the RRG showing rotations of large, mid, and small-cap stocks, the picture becomes even clearer. Small and mid-cap stocks are still gaining relative strength in the leading quadrant. Meanwhile, large caps are languishing in the lagging quadrant, continuing to lose ground.

A More Granular Look: Where the Action Is

Now, let’s get into the nitty-gritty. We get a more nuanced view by combining the breakdown of the US stock universe into growth and value with large-, mid-, and small-caps. The resulting RRG with six tails, three for growth and three for value broken down into three size segments, paints a vivid picture:

Mid- and small-cap growth stocks are the clear leaders, deep in the leading quadrant and heading further into it. Value small-cap and mid-cap stocks on the right side of the graph are holding their own, although they are losing some relative momentum. Both the large-cap tails inside the lagging quadrant show this segment’s current weakness.

Still, large-cap growth has just started to curl back up a bit while large cap value continues to head southwest. This means that large-cap value is now the weakest segment in the market, being inside the lagging quadrant and traveling on a negative RRG-Heading.

What This Means for Investors

Large-caps in general, particularly large-cap value, is best avoided for now. Small-cap and mid-cap growth stocks deserve your attention — they’re where the action is.

Market Outlook: Steady as She Goes

Despite these rotations, the overall outlook for the stock market in the coming weeks remains healthy.

The S&P 500 chart shows the rhythm of higher and lower lows is intact. Divergences causing concern have been negated, and breadth metrics have normalized—they’re no longer sending too many negative signals.

#StayAlert and have a great weekend. –Julius

“The market goes up the escalator and down the elevator.” This is a quote that one of my mentors, Ralph Acampora, shared with me when I visited him years ago at his farm in Minnesota. This market truism is based on the fact that volatility tends to remain low in bull market phases, and volatility tends to spike higher during bear phases.

Why does this tend to happen? Well, when everything is going well, and investors are optimistic, they tend to slowly accumulate positions on the way up. But when investors get nervous, do they calmly and rationally begin entering sell orders? They do not. Panic ensues, selling begets further selling, and what’s known as a “waterfall decline” quickly emerges on the charts.

A number of my recent podcast interviews have included discussions of the VIX and why volatility may be the most important metric to follow. My fellow StockCharts contributor Tom Bowley (a fan of the Carolina Panthers, a team with an equally painful record to my Cleveland Browns) told me it was at the could help you provide the gift of more mindful investing techniques! For those on your list that are not big on the financial markets but also super important to you, check out the “Personal Development” section at the bottom!


Comparing Volatility Between Stocks and Bonds

While many investors are familiar with the VIX to track volatility in the equity markets, far fewer are aware of the ICE MOVE index which tracks volatility for bonds. Perhaps the bond markets are signaling uncertainty that is not yet reflected in the movement of equities?

We can see a generally positive correlation between these two data series, although October saw the MOVE surging much higher than the VIX. Post-election, however, both the MOVE and the VIX have dropped in a very similar fashion. For now, the two indexes reflect a low-volatility environment for their respective asset classes. This chart has a place of honor on my Market Misbehavior LIVE ChartList because I have often found the fixed income markets to serve as a leading indicator for stocks, especially when it comes to anticipating risk-off scenarios.

High Yield Spreads Remain Quite Narrow

We can also look at the high yield or “junk” bond market to determine how that particular area of the fixed income space is performing relative to stocks. I have found that high yield spreads, measuring the gap between yields on junk bonds versus risk-free Treasury bonds, often move in tandem with the VIX.

I have plotted the ICE BofA High Yield Index Option Adjusted Spread in the top panel using an inverted scale, followed by the VIX also on an inverted scale. The inverted scales are used here because of the traditional inverse relationship between these two data series and the S&P 500 index, shown at the bottom.

Note that high yield spreads are literally at their lowest levels in years, indicating that bond investors are perceiving a low-risk environment. So bond investors are saying low risk, equity investors are saying low risk, and that means this bull market is in great shape… for now.

While all three of these charts confirm the current low volatility uptrend phase for stocks, these charts will also likely provide us with clear signals when that low volatility bull phase is over. Using these charts as a guide, we can measure when the S&P 500 is perhaps ready to “take the elevator down” in a new correction phase!

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!


David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

After a broad market review, Mary Ellen shares strategies for trading pull backs and breakouts in stocks. Highlights include a deep dive into ARK’s Innovation ETFs and their holdings, locating market strength in the process. Tune in for valuable insights and tips to help you make informed investment decisions!

This video originally premiered December 6, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

The first trading week in December started on a positive note, with the S&P 500 ($SPX) and Nasdaq Composite ($COMPQ) notching new all-time highs, while the Dow Jones Industrial Average ($INDU) pulled back slightly. Despite the small upmoves for most days, it wasn’t a quiet week.

Surprisingly, a flood of news from around the world didn’t impact equity performance much. The broader equity indexes continued their bullish trends despite South Korea briefly going under martial law, the collapse of the French government, Fed Chairman Jerome Powell’s speech, and the higher-than-expected jobs number.

The stock market’s tone is bullish, and volatility is low. The Cboe Volatility Index ($VIX) is now below 13.

This StockCharts MarketCarpets snapshot below shows the S&P 500’s weekly performance. The heavily weighted mega-cap stocks fared well, but the best weekly performer was American Airlines (AAL), with a 19.83% gain.

FIGURE 1. STOCKCHARTS MARKETCARPETS TOOL FOR DECEMBER 6. Mega-cap stocks performed well this week. American Airlines was the top performer for the week.Image source: StockCharts.com. For educational purposes.

One area to watch is the small caps. The S&P 600 Small Cap Index ($SML) broke above its trading range in early November. It then pulled back and bounced off its support level (see chart below).

FIGURE 2. DAILY CHART OF S&P 600 SMALL CAP INDEX ($SML). After breaking out of a trading range in early November, $SML pulled back and bounced off a support level. It then consolidated and broke below the consolidation range. Is it heading back to its support level?Chart source: StockCharts.com. For educational purposes.

Since November 25, the index consolidated and broke below the consolidation pattern. $SML could be on its way back to the support level between 1440 and 1450. Generally, small caps start rising mid-December and continue into the next year. This is known as the “January Effect,” so it’s likely that $SML will bounce off that support and move higher. The market breadth indicators for $SML—percentage of stocks trading above the 50-day moving average and the advances vs. decliners are also declining. I’ll be carefully watching the price action in the next few weeks.

Solid Week For Crypto

This week was a big one for cryptocurrencies. Bitcoin to US Dollar ($BTCUSD) closed above 100,000, a record close. The weekly chart below shows that $BTCUSD had a strong upward move after breaking out of its consolidation pattern from March to October.

FIGURE 3. BITCOIN SURGES. The cryptocurrency successfully closed above its 100,000 level on Friday.Chart source: StockCharts.com. For educational purposes.

The moving average convergence/divergence (MACD) is very bullish. The rise in cryptocurrency prices shows investors’ risk appetite is pretty strong.

In Other News

The broader equity indexes may have been moving up in dribs and drab,s but some stocks saw significant gains, mainly due to earnings.

Shares of Docusign (DOCU) rose on much better-than-expected earnings. Docusign’s stock price closed up by 27.86% on Friday. Lululemon Athletica, Inc. (LULU) is another stock that saw a 15.90% rise in its stock price on stellar earnings. Other retail and software companies, such as Amazon.com, Inc. (AMZN), International Business Machines (IBM), American Express Co. (AXP), and Home Depot (HD), saw significant percentage gains in Friday’s trading.

Next week, we get earnings from Adobe Systems, Inc. (ADBE), Broadcom Inc. (AVGO), Oracle Corp. (ORCL), and Costco (COST). All these stocks saw healthy gains this week. Although a big chunk of earnings is behind us, there are some exciting ones on deck.

Bond Blues in Rear-View Mirror?

Treasury yields declined while bond prices rose a little. The weekly chart of the iShares 20+Year Treasury Bond ETF (TLT) below shows TLT approaching its first resistance line. This happened before, which caught me off guard—a lesson learned. But now that bonds are creeping back up, I may give it another go.

FIGURE 4. DAILY CHART OF TLT. Bond prices are rising slowly but it may be a while before there are significant moves, given the low bond volatility.Chart source: StockCharts.com. For educational purposes.

Bond volatility is low, as seen by the ICE MOVE Index in the lower panel. This suggests that bond price movement may be small, so this time, I might wait until the next resistance level, just above $102, before I go long.

Next week is light on economic data, but we will get the November CPI and PPI. There’s also the  December 18 Fed meeting. I’d wait for these events before making investment decisions on TLT.

According to the CME FedWatch Tool, the probability of a 25 basis point rate cut at the Fed meeting is around 85%. It’s more important to hear what the Fed says about interest rate cuts for 2025. If it’s different from what the market has priced in, that will have more of an impact on the market.

End-of-Week Wrap-Up

  • S&P 500 up 0.96% for the week, at 6090.27, Dow Jones Industrial Average DOWN 0.60% for the week at 44,642.52; Nasdaq Composite up 3.34% for the week at 19,859.77
  • $VIX down 5.48% for the week, closing at 12.77
  • Best performing sector for the week: Consumer Discretionary
  • Worst performing sector for the week: Energy
  • Top 5 Large Cap SCTR stocks: Applovin Corp. (APP); Palantir Technologies (PLTR); Reddit Inc. (RDDT); MicroStrategy Inc. (MSTR); Axon Enterprise, Inc. (AXON)

On the Radar Next Week

  • November Consumer Price Index (CPI)
  • November Producer Price Index (PPI)
  • 30-Year Mortgage Rate
  • Earnings from Oracle (ORCL), Broadcom (AVGO), Adobe (ADBE), Costco (COST)


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Chartists looking for stock setups can start with strong industry groups. The Fintech (FINX) is in a strong uptrend and leading, but looking extended short-term. While there is no setup currently, we can learn from past setups and apply these lessons to stocks within the group. 

FINX is both strong and extended. The chart shows FINX advancing 53.6% from November to March. It then moved into a long corrective period as the falling channel formed over the next five months. This correction ended with a breakout in late August and the ETF recorded its first new high in mid September. FINX extended further and led the market over the last four months.

Even though FINX shows no signs of weakness on the price chart, it is becoming quite extended because the 10-day EMA is over 20% above the 200-day EMA. The bottom window shows this difference using the PPO(10,200,0). I use this mostly as trend indicator. It turns bullish with a move above +3% and bearish with a move below -3%. These signal buffers reduce whipsaws and catch big trends.

With FINX looking extended, it is time to exercise some patience and wait for the next opportunity. The blue dashed lines show short-term bullish continuation patterns within the strong uptrend. These represent tradable pullbacks. We can use these examples as a guide in the future, and also look for tradable pullbacks individual fintech stocks.  

The indicator window shows %B, which quantifies the relationship between the close and the 20-day SMA. The pullbacks were quite mild as %B dipped below .50 just twice. This means the close was below the 20-day SMA, which is the middle line on the Bollinger Bands. A decline to the 20-day SMA signals a pullback within the uptrend and this is an opportunity, not a threat.

Extended or not, FINX is still a leader and still in a strong uptrend. This means fintech stocks provide a good hunting ground for bullish setups. Pullbacks and oversold conditions provide opportunities. This report continues at TrendInvestorPro where I feature a fintech stock with one such setup. Click here to see the full report and learn more. This week we featured tradable setups in over a dozen ETFs and stocks. 

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