Market Monitor December 13

Highlights

The New York stock market closed mixed, with Broadcom stealing the spotlight thanks to its AI revenue forecasts for the next three years.

In addition to meeting its quarterly expectations for the fourth consecutive year, the announcement by CEO Hock Tan was a key trigger for the company’s more than 24% stock price surge.

The AI race is expected to generate an additional $60 to $90 billion in AI-related revenue over the next three years from existing clients, primarily OpenAI, Meta, Apple, and Alphabet.

Nvidia, on the other hand, fell 2% due to concerns that Broadcom’s AI chips could become a significant competitor in terms of cost efficiency. However, it should be noted that Broadcom’s specialized chips are used by major players only for a limited number of applications.

Key Indices Overview

The Market Monitor highlights the performance of three major indices: SPY (S&P 500 ETF), QQQ (Nasdaq 100 ETF), and IWM (Russell 2000 ETF).

SPY (S&P 500 ETF)

• Price: 604.21 (-0.02%)
• Short-term (ST) Trend: ✅ Positive
• Long-term (LT) Trend: ✅ Positive
• One Week Performance: -0.59%

QQQ (Nasdaq 100 ETF)

• Price: 530.53 (+0.77%)
• Short-term (ST) Trend: ✅ Positive
• Long-term (LT) Trend: ✅ Positive
• One Week Performance: +0.77%

IWM (Russell 2000 ETF)

• Price: 233.07 (-0.69%)
• Short-term (ST) Trend: ✅ Positive
• Long-term (LT) Trend: ✅ Positive
• One Week Performance: -2.45%

Summary:

• SPY remains nearly flat for the day and the past week, maintaining a strong long-term trend.
• QQQ outperforms with a 0.77% daily gain and robust performance over short- and long-term periods.
• IWM faces a short-term pullback, with declines in weekly and bi-weekly performance but shows strength in longer timeframes.

Sector Performance

The Market Monitor provides sector performance over 1 Week, 1 Month, and 3 Months.

1 Week Performance:

• Top Gainer: Consumer Discretionary (~+6%)
• Weakest Sectors: Real Estate (~-2%), Health Care (~-2%), Materials (~-2%)

1 Month Performance:

• Top Gainers: Consumer Discretionary, Information Technology
• Weakest Sector: Energy (slightly negative performance)

3 Month Performance:

• Top Gainers: Information Technology (~+30%), Industrials (~+20%)
• Weakest Sector: Real Estate (declining)

Summary:

• Over the short-term (1 week), Consumer Discretionary leads, while Real Estate underperforms.
• Over 1 month and 3 months, Information Technology shows significant strength, driving the broader market.
• Real Estate continues to struggle across all timeframes.

All info available on our Sector Performance page

Historical Breadth Numbers

The table at the bottom provides market breadth metrics, showing the percentage of advancing (Adv) and declining (Decl) stocks, along with moving averages and other indicators.

Key Metrics for December 13:

• Advancing Day (Adv Day): 30.7%
• Declining Day (Decl Day): 66.7%
• SMA (20-day): 38.9%
• SMA (50-day): 49.1%
• SMA (100-day): 54.1%
• SMA (200-day): 57.6%
• NH (New Highs): 2.2%
• NL (New Lows): 3.4%

All info available on our Market Monitor page

Trend:

• Declining stocks dominate (66.7%) on December 13, reflecting short-term weakness.
• Moving averages (SMA) suggest the market is still stable, as most indicators remain above key thresholds like the 200-day SMA (57.6%).

Overall Insights

• SPY and QQQ remain strong long-term, while IWM faces near-term weakness.
• Sector Leadership: Information Technology and Consumer Discretionary lead gains, while Real Estate remains the weakest sector.
• Market breadth indicates short-term selling pressure (Advancers: 30.7%, Decliners: 66.7%), but broader trends remain intact.
• This indicates a market where large-cap tech stocks dominate performance, and shorter-term pullbacks (particularly in small-cap stocks) create mixed sentiment.