Market Monitor December 04

Highlights

Bitcoin Surpasses $100,000 Milestone

Following Donald Trump's victory in the U.S. presidential election on November 5, Bitcoin's value has surged nearly 50%, reaching above $100,000 for the first time.

The final push came after Trump nominated Paul Atkins, a crypto enthusiast, to lead the Securities and Exchange Commission (SEC). Atkins, a co-chair of the pro-crypto Token Alliance, advocates for a crypto-friendly SEC to support the industry's growth in the U.S.

Investors have poured $32 billion into Bitcoin ETFs this year, with $8 billion added since the election. This influx has fueled optimism in the market, with Bitcoin trading at $102,200 as of Thursday morning.

Market Overview

SPY (S&P 500 ETF):

• 1-Week: +1.17%
• 3-Month: +12.45%
• 1-Year: +32.04%

The SPY continues to show a strong long-term uptrend, gaining momentum in the short term.

QQQ (Nasdaq 100 ETF):

• 1-Week: +2.74%
• 3-Month: +16.62%
• 1-Year: +33.43%

QQQ remains a leader, driven by strength in technology stocks, with solid performance across all time frames.

### IWM (Russell 2000 ETF):

• 1-Week: +0.11%
• 3-Month: +15.87%
• 1-Year: +28.95%

Small-cap stocks saw minor gains in the last week but have delivered impressive growth over the longer term.

##Sector Performance

1-Week:

• Winners: Health Care, Information Technology, Communication Services
• Losers: Utilities, Energy, Real Estate

1-Month:

• Leaders: Information Technology, Financials, Industrials (+14%)
• Laggards: Materials, Real Estate,

3-Month:

• Top Performers: Information Technology, Industrials, Health Care
• Underperformers: Real Estate, Consumer Staples

All info available on our Sector Performance page

Market Breadth and Historical Indicators

Advancing Stocks: 56%

Declining Stocks: 41.4%

Stocks Above Key Moving Averages:

• 20-Day: 63.2%
• 50-Day: 61.9%
• 200-Day: 63.6%

New Highs/New Lows Ratio:

• New Highs (NH): 7.8%
• New Lows (NL): 1.5%

This ratio reflects strong bullish momentum, with significantly more stocks making new highs compared to new lows.

All info available on our Market Monitor page

Key Takeaways

1. Technology Sector Strength: Information Technology continues to outperform significantly, driving gains across major indices.
2. Mixed Short-Term Performance: Health Care surged this past week, but sectors like Utilities, Energy, and Real Estate underperformed.
3. Bullish Breadth: A solid majority of stocks remain above key moving averages, supporting the broader market's upward momentum.
4. Small-Cap Resilience: Despite a flat week, the Russell 2000 has shown notable 3-month and 12-month growth, indicating underlying strength in small-cap stocks.
5. Sector Rotation Signals: Health Care and Industrials have joined Technology in leading recent gains, suggesting potential rotation into these sectors.