LETTERS The COMMERCE naive?

LETTERS The COMMERCE naive? ...

Dec 22 - Welcome to the house for real-time reporting of markets brought to you by Reuters reporters. We can discuss the world in real time, we can share our thoughts with you.

Is this a steal? (1035 EST/1535 GMT)

The S&P 500 has been sitting up barely two points above its high on Nov. 22 since it entered its initial peak on Jan. 22, but its hawkish currency, the Omicron variant spread and the uncertainty about the chances of the Build Back Better Plan passing in Washington fueled speculation.

While the tone has become more unpopular in the last month of the year, sectors such as food and utilities have been the top performers in December thus far, and a wide range of companies have left a line with higher growth prospects such as consumer discretionary and tech, while still have still lagged. As an example, the question, whether this portends stormy seas for the broader market.

In a recent note, Bespoke Investment Group, averaging the performance from the smallest to the largest to the largest, measured the scale of the stock market. With more than a thousand dollars in expenditures, the S&P 500 had limited success in the midterm.

Looking at the sector's performance during Tuesday's close, staples outperforming discretionary stocks by a quarter-percentage.

According to that analysis, the percentage of staples trading above their 50 day moving average reached 90% last week. The number of the shares that the Nasdaq has kept at the lowest level, the widest spread in at least 30 years.

Even though Bespoke was not aware of this, Goepfert found that comparison between the two has no predictor for a market change, with only one instance leading to a sudden decline since 1990.

(Chuck Mikolajczak)

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American STOCKS CREEP AROUNDS EARLY TRADE (1003 EST/1503 GMT)

Wall Street's main indexes are fairly flat early on Wednesday, while concerns are swirling about the Omicron variant and how the coronavirus works in terms of the global economy recovery.

The S&P 500 is on track at around 4,518 feet a second straight close to its 50-day moving average.

The ODI is shy of the closely watched midterm moving average, which is around 35,600. The Nasdaq's 50-DMA is going up around 15,500.

Here is where markets do early trade:

(Terence Gabriel)

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500: BULLS GET A BOOST (0900 EST/1400 GMT)

Despite the strong bounce from Monday, the S&P 500 index arose only around 1.3% from its close of the four-september 12 record.

The 5-day moving average of CBOE equity put/call ratio, which can be viewed as a contrarian measure of sentiment, now has an open side with bulls : "This is a huge improvement" - this is just another kilowatt - with the swindle."

The average measure fell to 58% and 58.2% on December 6 and December 16 and is now deflating to 51.8%. Despite this increasing to 40% in mid-June 2020, the measurement has risen to 30% and 5% and was expected to rise to 80%.

If this pattern continues, the measure appears to have signaled that the market sentiment became sufficiently bearish over the past several weeks of trading, that the SPX could become a more enduring recovery.

As the SPX rallies, traders will look at how the P/C measure can draw up to 40%.

That measure peaked at 105% on March 17, 2020, in an over 30% S&P 500 collapse.

(Terence Gabriel)

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