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The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 2.87 percent on the week to close at 586.88 on Friday (December 20). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) posted a 2.6 percent decrease to hit 24,599.48, and the CSE Composite Index (CSE:CSECOMP) was down just 0.12 percent to reach 130.58.

Statistics Canada released November’s consumer price index (CPI) data on Tuesday (December 17). The data showed that inflation in Canada continued to cool, posting a 1.9 percent year-over-year increase, down from the 2 percent recorded in October.

The agency said the decrease was partly due to a 0.4 percent decrease in gasoline prices and consumers taking advantage of lower prices during Black Friday sales.

StatsCan also released its October monthly mineral production survey on Thursday (December 19). The release shows copper production in Canada increased to 37.5 million kilograms from 35.43 million in September. Gold production also increased, rising considerably to 26,553 kilograms from 15,296 kilograms the prior month. Meanwhile, silver production decreased slightly, with 25,166 kilograms produced in October compared to 26,827 kilograms the previous month.

South of the border, the US Federal Reserve held its final meeting of the year this past Tuesday and Wednesday (December 18). The committee cut the benchmark rate by 25 basis points, lowering it to 4.25 to 4.5 percent.

The Fed cited an improving economic outlook, with inflation easing towards its target 2 percent range and a better job market balance. However, the Fed is widely expected to slow further cuts in the new year as it continues to gather data.

In his remarks following the meeting, Fed Chairman Jerome Powell wouldn’t rule out future increases as some inflationary indicators have stalled in recent weeks.

The news was not well received on Wall Street, with the Dow plunging more than 1,000 points following the announcement.

Over the course of the week, markets were broadly down. The S&P 500 (INDEXSP:INX) fell 2.19 percent to end Friday at 5,930.84, while the Nasdaq-100 (INDEXNASDAQ:NDX) shed 2.69 percent to 21,289.15. Meanwhile, the Dow Jones Industrial Average (INDEXDJX:.DJI) finished the week down 2.25 percent at 42,840.25.

Precious metals also took a hit on the Fed news, with gold and silver plunging below US$2,600 and US$30 respectively.

Overall, gold lost 1 percent over the week to finish Friday at US$2,623.92 and silver sank 3.42 percent to US$29.49 per ounce. Additionally, copper fell 2.61 percent for the week to close at US$4.10 per pound on the COMEX. The S&P GSCI (INDEXSP:SPGSCI) was down 1.32 percent to close at 539.08.

Learn about this week’s five best-performing Canadian mining stocks below.

Data for this article was retrieved at 4:00 p.m. EST on December 20, 2024, using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.

1. Omineca Mining and Metals (TSXV:OMM)

Company Profile

Weekly gain: 66.67 percent
Market cap: C$10.91 million
Share price: C$0.075

Omineca Mining and Metals is a gold exploration and mining company working to advance its Wingdam project in British Columbia, Canada.

The project consists of 61,329 hectares of hard rock and placer claims within the Cariboo mining district. It is a 50/50 joint venture with D&L Mining. The site currently hosts mining operations focused on extracting placer gold from gravels 50 meters beneath Lightning Creek.

According to the company, the mine is extracted through gravity separation, which uses an existing reusable water supply without chemicals, mill waste or tailings.

Omineca’s shares saw price gains at the end of the week, but the only news came early in the week after the company announced on Tuesday that it had expanded its diamond drilling program at Wingdam from 10 holes to 17 and up to 10,000 meters. So far, the company has completed six holes with two rigs and sent its first sample to be assayed.

The company said drilling has encountered some quartz veins with various concentrations of semi-massive to massive sulphide mineralization, and included photos of the mineralized cores. Samples from several holes will be assayed for coarse gold.

Additionally, on December 6, the company announced that it had entered into a non-brokered private placement of flow-through units for C$0.055 per share, with gross proceeds of up to C$2.4 million. The company said it would use the funds to explore Wingdam further as it works to find the lode source of the placer gold.

2. Bayhorse Silver (TSXV:BHS)

Company Profile

Weekly gain: 45.45 percent
Market cap: C$17.87 million
Share price: C$0.08

Bayhorse Silver is a silver-focused company currently working to bring the Bayhorse silver, copper and antimony mine in Oregon, US, back online.

The mine was originally in operation until late 1984 and closed when the price of silver dropped to under US$6 per ounce. Historic sampling during the 1980s identified grades of 2,146 grams per metric ton (g/t) silver, and a bulk sampling program conducted by Bayhorse in 2014 found bonanza grades of 150,370 g/t silver.

The company has continued to explore the property and, in October 2018, produced a maiden resource estimate that showed the property hosts inferred resources of 6.33 million ounces of silver from 292,300 US tons of ore with an average grade of 21.65 ounces per US ton.

The most recent update from the project came on December 19 when the company reported that drilling had encountered a strongly brecciated zone at 112 meters downhole, continuing to the current drilling depth of 148 meters. Bayhorse said the XRF field analysis showed elevated levels of copper, zinc and lead, but confirmation from a formal lab assay is needed.

3. Defense Metals (TSXV:DEFN)

Company Profile

Weekly gain: 40 percent
Market cap: C$32.53 million
Share price: C$0.14

Defense Metals is a rare earth metals exploration and development company currently focused on advancing its Wicheeda property near Prince George in British Columbia, Canada.

The property consists of 12 mineral claims covering 6,759 hectares and hosts rare earth element mineralization, first discovered at the site in 1976. Between 2019 and 2023, Defense extensively explored the property, drilling 60 diamond drill holes totalling 12,883.91 meters.

In August 2023, the company produced a technical report for the property with its most recent mineral resource estimate. The site hosts measured and indicated resources of 699,000 metric tons of total rare earth oxides from 34.17 million metric tons of ore with an average grade of 2.02 percent, as well as inferred resources of 113,000 metric tons of total rare earth oxides from 11.05 million metric tons of ore with an average grade of 1.02 percent.

The company’s most recent news came on Thursday, when it announced it would grant 9.95 million incentive stock options to directors, officers and consultants. The options are exercisable for five years, with 8.85 million offered at C$0.125 per share, 400,000 offered at C$0.205 per share and 700,000 at C$0.26.

4. Nevada Lithium Resources (CSE:NVLH)

Company Profile

Weekly gain: 37.5 percent
Market cap: C$53.18 million
Share price: C$0.22

Nevada Lithium Resources is an exploration and development company working to advance its Bonnie Claire lithium project in Nevada, US. The property consists of 915 placer claims covering an area of 74.1 square kilometers in Nye County.

According to a mineral resource estimate issued on Monday (December 16), the site hosts indicated resources of 202,000 metric tons of contained lithium from ore with an average grade of 1,074 parts per million (ppm) and inferred resources of 499,000 metric tons contained lithium at an average grade of 1,106 ppm.

Along with the lithium, the site also has significant quantities of boron, hosting an indicated resource of 231,000 metric tons of contained boron from ore with an average grade of 1,519 ppm and an inferred resource of 407,000 metric tons at 1,505 ppm.

In addition to the technical report, Nevada Lithium announced the same day that it had been given conditional approval to list its common shares on the TSX Venture exchange. Once final approval is received, shares will be listed on the TSXV under the same ticker symbol and delisted from the CSE.

5. Gratomic (TSXV:GRAT)

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Company Profile

Weekly gain: 33.33 percent
Market cap: C$13.02 million
Share price: C$0.06

Gratomic is a junior graphite development and exploration company with assets in Namibia, Canada and Brazil.

Its primary project is the Aukam graphite property, located near the port of Luderitz in Southern Namibia. It covers an area of 141,500 hectares and has been granted four prospecting licenses. The site hosts an existing 7,200 metric ton per year modular processing plant, with the capability to be upgraded to 22,000 metric tons per year.

Gratomic has been working to create stockpiles at the Aukam mine as it starts to ramp up production. During the commercial commissioning phase of the plant, the company produced 300 metric tons of graphite.

Gratomic shared an update on the project on November 21, and announced the appointment of new Chief Operating Officer and Director Hermanus Manuel Silver.

“We have already started working on a business plan which we plan to implement in December 2024 to set the stage for greater strategic advancement of the asset and the processing plant,” he said.

The company’s most recent news came on December 11, when it alleged that its former chief operating officer had wrongfully transferred some of its mining claims at its Capim Grosso property in Brazil to another graphite company. It has yet to be approved by the country’s mining authority, and Gratomic is seeking legal advice. The company stated that it had made significant investments in the transferred claims, and it plans to sell the property if it can recover it.

Gratomic had previously allowed other mining claims at its Capim Grosso property to expire as it said further exploration and development costs at the site were not justified and would drain company resources.

FAQs for Canadian mining stocks

What is the difference between the TSX and TSXV?

The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.

How many companies are listed on the TSXV?

As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.

Together the TSX and TSXV host around 40 percent of the world’s public mining companies.

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

Article by Dean Belder; FAQs by Lauren Kelly.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

French President Emmanuel Macron has faced jeers from locals on the cyclone-battered French overseas territory of Mayotte, telling them they should be “happy to be in France, because if it wasn’t France you’d be 10,000 times even more in the s***.”

Macron has come under fire for his handling of Cyclone Chido, which ripped across Mayotte last weekend inflicting destruction that has been likened to an atomic bomb, and his comments only risk exacerbating anger from locals who are without water or electricity.

Opposition politicians say France has neglected the archipelago and has failed to anticipate how to fortify the islands in anticipation for natural disasters linked to climate change, such as Chido – a category 4 storm that flattened neighborhoods, knocked out electrical grids, crushed hospitals and schools and damaged the airport’s control tower.

The cyclone tore through the southwestern Indian Ocean last weekend, impacting northern Madagascar before rapidly intensifying and slamming Mayotte with winds above 220 kilometers per hour (136 miles per hour), according to France’s weather service. It was the strongest storm to hit the islands in more than 90 years, Meteo-France said.

Macron began the conversation on Thursday by expressing that he had come to Mayotte to listen and engage in dialogue with residents, who he acknowledged had lived through “something horrible.” But as the crowd began to scoff, he changed his tone.

Macron has been met with anger by many of the residents he visited during his two-day trip to Mayotte. Many say they feel there is a lack of support from Paris following the disaster.

“The water isn’t there, no services are there. After six days, is that normal?” one man angrily asked him on Thursday.

Another woman, clearly distressed, told Macron that the archipelago “needs him.”

“Everything is demolished. We need you – there is nothing in Mayotte. We have young children, we are without water, without electricity,” she said.

Meanwhile, right-wing politicians, including acting Interior Minister Bruno Retailleau of the conservative Les Republicains party, have pointed the finger at illegal immigration, which they say has impoverished Mayotte and left it with vast shanty towns vulnerable to extreme weather, Reuters reported.

The worst damage was to those informal settlements and shacks.

These neighborhoods are home to many of the roughly 100,000 undocumented migrants who live in Mayotte, according to France’s interior ministry.

Located about 5,000 miles from Paris, Mayotte is the poorest place in the European Union and has struggled with unemployment, violence and a deepening migration crisis.

Around 77% of Mayotte’s population live below the national poverty line, making it the poorest department in France. The poverty rate in Mayotte is five times higher than that of mainland France, according to government figures.

In recent decades, tens of thousands of people from neighboring Comoros and Madagascar have come to Mayotte seeking better economic conditions and access to the French welfare system.

Authorities in Mayotte are continuing their relief operations, with many of the supplies arriving via an air bridge from France’s other Indian Ocean territory, Reunion Island.

In addition to the 31 confirmed deaths, the local prefecture said Wednesday it had recorded 1,373 people with light injuries, with a complete list of deaths and injuries expected to take time. It is feared the death toll could still rise significantly, but authorities have said that they are currently focused on bringing survivors to safety.

Macron said the government would send additional support to Mayotte soon and that France will observe a day of national mourning on Monday.

This post appeared first on cnn.com

At least one person has died after a car plowed into a crowd at a Christmas market in Magdeburg, Germany, police have said, according to local public broadcaster MDR.

Several people have also been injured, MDR reported, citing police.

In the video, dozens of people are crowded at the market stalls when the vehicle plows directly into them. Some people can be seen running away from the car in panic, others dive into the stalls.

Bodies and debris are scattered across the narrow lane as the car turns out of the plaza.

Extensive police measures are currently in place at the scene, Magdeburg police said in a post on X.

MDR reported that the Prime Minister of Saxony-Anhalt, Reiner Haseloff, is on his way to Magdeburg, which is west of Berlin.

Magdeburg is the state capital of Saxony-Anhalt and has a population of about 240,000.

This is a developing story and will be updated.

This post appeared first on cnn.com

Italian Deputy Prime Minister Matteo Salvini was found not guilty in a criminal kidnapping case dating back to August 2019, when he barred a migrant vessel from docking in the country, leaving it stranded offshore.

The ruling judge said Friday that “the facts do not exist.”

The case dates back to when Salvini was interior minister in 2019. He had prohibited the Spanish-flagged Open Arms NGO rescue boat from docking in Sicily with 147 asylum seekers, leaving migrants at sea under stifling hot conditions for 19 days before a Sicilian court intervened and ruled they could be brought to shore.

Children and vulnerable people onboard were air-lifted to safety throughout the ordeal.

At the time, Salvini cited national security concerns, amid government efforts to crack down on irregular immigration by sea into Italy.

The case drew international attention after American actor Richard Gere, who was vacationing in Italy at the time, took food and water out to the stranded migrant vessel. Gere was also named as a witness, but did not testify in person or writing after objections from Salvini’s defense, led by Giulia Bongiorno, who is also a member of Salvini’s Lega party.

On Thursday, Elon Musk posted on X that it was “crazy” that Salvini was being tried for “defending Italy.”

Salvini responded: “Thank you for your solidarity, @elonmusk. Defending Italy’s borders was my duty, and I am proud of what I accomplished. Whether I am convicted or acquitted, our fight for FREEDOM and SECURITY in Italy and Europe will continue.” Musk responded: “You did the right thing.”

Before nearly eight hours of deliberation, prosecutor Marzia Sabella told the court that Salvini had exceeded his powers as interior minister. “There were no national security reasons preventing disembarkation,” she told the panel of judges.

Salvini spoke with reporters outside the courthouse in Palermo before the final hearing. “I am absolutely proud of what I did. I kept the promises I made, I fought mass immigration and, whatever the sentence, for me today is a good day because I am proud to have defended my country,” he said, adding, “I would do everything I did again.”

The verdict comes as Prime Minister Giorgia Meloni’s government fights to send migrants to Albania to be processed, a scheme which has been blocked by the judiciary. The legality of the Albanian Centers, which cost Italian taxpayers millions of euros, is now to be considered by the European Court of Justice.

This post appeared first on cnn.com

United States President-elect Donald Trump is staying true to his self-given moniker of “tariff man.” This time, he’s taking aim at some of the world’s fastest-growing major economies in the weeks before his inauguration.

Earlier this month, he singled out the BRICS nations, threatening them with 100% tariffs if they form a new currency or replace the US dollar with a different tender altogether.

India, a founding BRICS member, is powerful and central to the intergovernmental organization, that also features China and Russia among others. Like other countries, India has been targeted by Trump, who called New Delhi a “very big abuser” of the bilateral trading relationship during a campaign event in September.

Even during his first administration, Trump applied tariffs on steel and aluminum that set off a cascade of retaliatory moves. He eventually also stripped the country of preferential trade status, removing a designation that exempted billions of dollars’s worth of the country’s products from US tariffs and igniting anger among Indian officials.

But despite all that, the president-elect enjoys a warm personal relationship with Indian Prime Minister Narendra Modi. The two men praised each other enthusiastically four years ago, when the president visited Modi’s home state of Gujarat. Observers say that rapport is likely to serve India well during Trump’s second term.

New Delhi is an outlier within the group and that could put it in an advantageous position, particularly given its heft, to quash any talk of de-dollarization, he said.

The idea, a long-held ambition for some members, could in theory see the group move away from using the greenback and seek to build either a new currency or transition to another tender altogether. Using other currencies could allow member countries to reduce their dependence on the US dollar.

“Having Trump breathing down BRICS’ neck saying, ‘don’t go down that road,’ gives India more space to maneuver,” Pant added.

It allows India to say the group should tread carefully to avoid provoking a very reactive United States, Pant said.

India’s foreign minister Subrahmanyam Jaishankar said this month that India had no interest in weakening the US dollar.

‘Quite positive’

There is still considersable pro-Washington sentiment in the Indian capital. China, and the belief that the US is on a collision course with the Asian superpower, is driving the relationship between Washington and India, according to some observers.

“His first term was quite positive, and the relationship that he ended up having with Modi also worked well for India, and therefore there is a sense that the second term might not be as disruptive,” Pant said.

Modi and Trump burnished their personal ties during Trump’s first term. Modi was feted at a rally in Texas in September 2019 titled “Howdy Modi.” The favor was returned for President Trump in February 2020 when 125,000 people turned out for the “Namaste Trump” rally in Ahmedabad.

Michael Kugelman of the Wilson Center’s South Asian Institute in Annapolis, Maryland also believes that an incoming Trump administration may afford India some rapprochement compared with the Biden years, particularly over issues like Ukraine and human rights.

“The world views of Trump and Modi are much closer, they converge a lot more than the world views of Biden/Obama and Modi,” he said.

On Ukraine, he added, neither Trump nor Modi has criticized President Vladimir Putin for the invasion in 2022 and both have recently called for peace. Trump has said he would end the war in 24 hours, and Modi offered his help to broker peace when he visited Moscow in July.

Transactional ways

Yet that is not likely to totally absolve India from the occasional turbulence associated with a Trump administration.

A universal tariff of 10% threated by Trump would impact India, Kugelman said, in part because India enjoys a trade surplus with the US.

Trade between the two sides has heavily favored New Delhi, according to United States data. Over the past two years, the US has imported about twice as much as it has exported.

India is becoming an increasingly important manufacturing hub for companies such as Apple, especially as it seeks to build its supply chains outside China.

In the first 10 months of this year, the US has imported $73 billion from India, compared with the $35 billion it has exported to the country.

Kugelman and Pant agree that the trade imbalance would create headaches for New Delhi, but not ones that are insurmountable. Instead, it might make discussions about deals or policy more transactional.

“This is just how Trump rolls, so even strategic partners like New Delhi will have to adjust to that,” said Kugelman.

Trump is “a deal maker,” said Pant. “It’s always about give and take. So, the long-term approach to policy making has to give way to more ad hoc approaches … what’s the deal you can cut now, rather than looking five years down the line.”

Pant points to a 2018 waiver given to New Delhi by Washington over the Chabahar Port in Iran. The exemption was needed following the reimposition of sanctions on Iran. The restrictions forced all US companies, foreign firms and countries from doing business with Iran.

New Delhi had signed a 10-year, $500 billion agreement with Tehran to run and operate the port, which India sees as a vital trade route to Central Asia and Afghanistan bypassing its archrival Pakistan.

The waiver formed part of Donald Trump’s then South Asia policy. In a 2017 speech, he called on India to assist the US with more economic help to Afghanistan. He used highly beneficial trade between the two as a bargaining chip.

“If you are able to put your interests transparently, and if you’re able to do business with him, then you may not be as worse off,” Pant added.

India has demonstrated it is able to walk the fine line between staying on the good side of Trump while also pursuing its own interests. Time will tell if that can be replicated, but the view from New Delhi appears to be optimistic.

This post appeared first on cnn.com

Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

S&P 500 Index Chart Analysis

This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

S&P 500 Index Chart Analysis

Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

The post S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7% appeared first on FinanceBrokerage.

Uncertainty in the stock market makes it difficult to make investment decisions. When investors sell off stocks, everyone follows without giving it much thought and you’re left trying to figure out which path you should take. We saw this price action in the stock market on Wednesday after the Federal Open Market Committee cut interest rates by a quarter percentage point. Investors started to sell their holdings, which intensified toward the last few minutes of the trading day. 

The rate cut didn’t come as a surprise. The market had already priced it in. Fed Chairman Jerome Powell’s comments about slowing down rate cuts for the next two years led to the massive selloff. Inflationary concerns were one reason which may have heightened investor fear. The S&P 500 ($SPX) fell by 2.95%, and the Nasdaq Composite ($COMPQ) dropped by 3.56%. The S&P 600 Small Cap Index ($SML) got hit hard, falling over 4%.

It wasn’t just equities that sold off. Gold prices fell. Silver prices fell. Bond prices fell. Even cryptocurrencies felt the pain. 

So, how damaging was the selloff? Let’s dive into the charts of the broader stock market indexes. 

Equities Hammered Hard

Whenever there’s such a significant fall in equities, it’s natural to think about buying the dip. But before you jump into anything, it’s best to see if the uptrend is still in play. 

From its August low, the S&P 500 has been in an upward trend with a few pullbacks, the deepest one being in early September when it almost reached its 100-day simple moving average or SMA (see chart below). On Wednesday, the index closed below its 50-day SMA toward the low of the day. The daily chart below shows market breadth is declining. 

FIGURE 1. DAILY CHART OF THE S&P 500 INDEX WITH BREADTH INDICATORS. The index is close to hitting its late November lows, a key support level. If it breaks below that level and market breadth indicators continue to weaken, it could be a bearish signal. Chart source: StockCharts.com. For educational purposes.

The NYSE Advance-Decline Line (!ADLINENYC), the percent of S&P 500 stocks trading above their 200-day moving average ($SPXA200R), and the S&P 500 Bullish Percent Index ($BPSPX) are all trending lower. That the $BPSPX is below 50 shows that bearish pressure is dominant, which is concerning. 

The weekly chart is more optimistic in that the S&P 500 is still trending higher and above its 21-week exponential moving average (EMA). All the moving averages on the chart are trending higher.

FIGURE 2. WEEKLY CHART OF S&P 500 INDEX. All moving averages overlaid on the chart are trending higher. The S&P 500 is trading above its 21-day EMA. A break below the EMA would be the first signal of a reversal of a bull market. Chart source: StockCharts.com. For educational purposes.

The takeaway: Watch the November lows in the daily chart (blue dashed line). A close below this level would mean a break in the “higher highs, higher lows” trend. If the $BPSPX continues to decline and the S&P 500 falls below its November low and 21-week EMA, consider offloading partial positions. 

The Nasdaq Composite has a similar pattern in its chart, although it’s still above its 50-day SMA (see chart below). However, what is concerning about the daily chart of the Nasdaq is that it closed at its November high. A break below this level could break the series of higher highs and higher lows depending on how it unfolds. So watch this level carefully.

FIGURE 3. DAILY CHART OF NASDAQ COMPOSITE WITH MARKET BREADTH INDICATORS. The Nasdaq has reached its November high. Market breadth indicators are weakening. Keep an eye on this chart. Chart source: StockCharts.com. For educational purposes.

The NASDAQ Advance-Decline Line (!ADLINENAS), the percent of Nasdaq stocks trading above their 200-day moving average is at 54% and trending lower, and the Nasdaq Bullish Percent Index ($BPCOMPQ) are all trending lower with the $BPCOMPQ at 50. If you pull up the weekly chart by changing the Period dropdown menu to weekly and using a five-year range, the trend is still bullish, similar to the weekly chart of the S&P 500.

Fear Gauge Is Running Hot

The rise in fear can be seen in the action in the Cboe Volatility Index ($VIX) which closed at 27.62, a 74.04% increase. The chart of the S&P 500 vs. the VIX below shows how big of a move it experienced on Wednesday. 

FIGURE 4. S&P 500 VS. THE CBOE VOLATILITY INDEX ($VIX). Spikes in the VIX are accompanied by a pullback in the S&P 500. Chart source: StockCharts.com. For educational purposes. A spike of such a magnitude occurred in early August, which is when the S&P 500 pulled back and resumed a very optimistic uptrend. 

Despite the spike in the VIX, investors weren’t flocking to “risk-off” investments. Gold and silver prices fell as did cryptocurrency prices. Treasury yields rose with the 10-year yield at 4.494% and the US dollar surged against other major currencies, especially the euro. 

The Bottom Line

Now that the last FOMC meeting for the year is behind us, there’s not much remaining in terms of economic data except the November Personal Consumption Expenditure (PCE) on Friday. There’s also the Santa Claus Rally to look forward to. So if Wednesday’s chaotic price action is an opportunity to buy the dip, i.e., if the indexes reverse without falling past critical support levels, you could make some end-of-year trades that could turn profitable as we head into the new year.



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 Yield Curve

The RRG above shows the rotations of the various maturities on the US-Yield Curve.

What we see at the moment is that the shorter maturities like BIL, SHY, and IEI are in relative uptrends against GOVT which means that the accompanying yields are being pushed lower.

The longer maturities, all inside the lagging quadrant, are in opposite moves and their yields are being pushed higher.

The result of such a rotation is a so-called “steepening” of the yield curve.

This chart shows the 10-2 yield curve. 10-year yield minus 2-year yield. In a normal situation, longer-dated maturities carry a higher yield than shorter-dated maturities. For almost 2.5 years this was not the case in the US. The negative values in the chart above indicate an “inverted” yield curve. This has happened a few times in the past but it is considered non-normal.

The recent rise of the 10-2 difference above 0 indicates a return to normal for the US yield curve.

Another way of showing the move of the yield curve is by using the Dynamic Yield Curve tool on the site. Here are three snapshots of the YC move since mid-2022.

This visualization shows the love of the entire curve. It not only shows the steepening vs flattening move but also the rise of the total curve of around 2% from just above 2% to over 4.5% currently.

The Relative Rotation Graph showing the rotations of the various maturities will help investors to keep track of the steepening/flattening move.

The US Dollar

The RRG for the G10 currencies, using the USD as the benchmark, shows a picture that could not be more clear.

The USD is the strongest currency at the moment.

All currencies in this group are, moving further, inside the lagging quadrant, indicating downtrends against the USD which is the center of the RRG.

This is a pretty massive move showing the strength of the USD against all other currencies.

On the EUR/USD chart, we can see a test of a major support level of around 1.03.

Once that support breaks, the way down is wide open towards the 0.96 area where the market bottomed out in 2022.

On the flip side. When support holds and EUR/USD can take out 1.06 we will have a completed double bottom targeting the upper boundary of the current range.

Looking at the $USD index chart, which is the USD expressed against a basket of currencies, we see that an upward break has already taken place. Taking this as a lead suggests that the odds are tilted in favor of a downward break in EUR/USD.

Sectors and SPY

Despite the big drop earlier this week, the sector rotation on the weekly RRG has not drastically changed (yet). So far the strength for XLC and XLY remains present. Only XLF has rolled over but remains inside the leading quadrant.

A similar observation can be made on the daily version of this chart.

On the weekly chart of SPY, the price has dropped back to a double support area around 585 where the rising support line meets horizontal support coming off the October high.

So far this all remains within “normal behavior” for an uptrend.

When SPY breaks that double support level and leaves the channel a re-assessment of the situation is needed.

#StayAlert and have a great weekend — Julius

When running my StockCharts Technical Rank (SCTR) scan on Thursday, I was a little surprised to find that 75 exchange-traded funds (ETFs) and large-cap stocks made the cut, especially after Wednesday’s selloff. It was a little ray of hope.

A quick sweep of the list didn’t reveal a particular sector or asset class to be dominant. The stocks and ETFs represented a broad segment of the stock market.

After going through the list, one security that caught my eye was the SPDR S&P 500 ETF (SPY), which closely follows the S&P 500 ($SPX). After the 2.98% drop in the S&P 500 on Wednesday, is SPY still technically strong? Let’s look at the daily SPY chart (see below).

FIGURE 1. DAILY CHART OF SPY ETF. The last two bars in the chart show that SPY is wavering. It’s not breaking below the mid-November lows, yet it doesn’t seem to want to move higher. It is trading below its 50-day moving average, the RSI is indicating slowing momentum, and the S&P 500 Bullish Percent Index is below 50. Chart source: StockCharts.com. For educational purposes.

Since mid-August, the SCTR (pronounced s-c-o-o-t-e-r) score has been hovering between the 70 and 90 levels. It’s now almost at 80. On Thursday, the ETF’s price closed at around the same level as Wednesday’s and is below its 50-day simple moving average (SMA). The relative strength index (RSI) is getting close to its oversold level.

The bottom line is that even though the SPY has a SCTR score of 79, and it hasn’t broken below the mid-November low, the RSI indicates momentum is weak, and the S&P 500 Bullish Percent Index ($BPSPX) is at around 41%, i.e., leaning toward bearishness. 

So, after a selloff like we just had, does it make sense to consider adding long SPY positions at this level? At the moment, the SPY is acting indecisive, but at some point, it’ll have to make a directional up or down move. A reversal with strong follow-through would be a signal to go long. The indicators displayed in the chart of SPY should support the reversal. If, on the other hand, SPY breaks below the mid-November low and the SCTR score falls below the 76 threshold, it would be a signal to unwind some positions. 

This is one chart to monitor as we wind down the year. We’ll see if Santa comes through next week!


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.