Euclid Investment Advisory Blog

Review & Analysis at Close December 27, 2022


With three days to go in 2022, a year-end rally is increasingly unlikely. Traders back from the holiday break Tuesday showed the same lack of excitement for growth-focused stocks they've had for most of 2022. The tech-heavy NASDAQ Composite fell 1.4% on the day, bringing the Nasdaq's year-to-date loss to 4%. Tesla, once the champion of growth stocks, continued its decline, finishing down 11%. Shares of the electric vehicle maker are now down for seven consecutive days, a stretch that's subtracted nearly a third of the stock's value. The stock is down 69% this year, on track for its worst year ever. 

One bright spot in the market came from Chinese stocks, which continued to move higher as China pulls back on its Covid Zero policies. China's reopening should be a positive for energy stocks. The US Dollar's fall is sparking Gold and Gold mining stocks.


The Dow Jones Industrial Average and Europe continue Bullish status; while the S&P 500, Russell 2000, NASDA Composite, NASDAQ 100, and US Treasury Bond continue Bearish. China is on Bull alert. Weekly Market Breadth indicators continue Bearish for Nasdaq 100, S&P 500, and Nasdaq Composite. 

Sector Trends
Bull Alert: Energy; Bullish but signs of weakening: Industrials, Staples, Utilities, Health Care, Gold Miners. Bear Alert: Materials, Financials; Bearish: Real Estate, Communication Services, Technology, Consumer Discretionary.                              

Fixed Income
The 10-year US Treasury Yield gapped up today, closing at 3.826%, up from a recent low of 3.402%. Rates are likely to rise near term.

The 2-year US Treasury Yield closed today at 4.32%, down from its November 7 peak of 4.71%. The 2-year yield rate of rise is slowing.

The 10-2-year Yield Curve remains inverted, with closing spread narrowing to -0.48, from last week’s -0.78.

The Australian Dollar is Bull alert, the Yen and Euro are Bullish; the British Pound is Bullish but weakening, all vs. US dollar.

The US Dollar Index continues Bearish, closing at 103.89, down from September 26 peak of 114.75.                     

Gold's trend continues Bullish; Base Metals and Copper continue Bullish; West Texas Light Crude continues Bearish downtrend.                   

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