Top 5 Charts of the Day – December 5th 2020

Last week, U.S. options traders opened 94.8 million new equity and ETF contracts.

The smallest of traders buying call options – pure speculation – accounted for 20.5 million of those.

At 21.6% of total volume, that’s a record high. pic.twitter.com/S3qO9lYtkA

— SentimenTrader (@sentimentrader) December 5, 2020

The great rotation from growth to value will be smooth and painless pic.twitter.com/kRIb2T6rHo

— zerohedge (@zerohedge) December 5, 2020

Closing the week with this amazing long-term chart on Growth Investing:$SPX Sales Growth has been in structural decline for half a century (source NDR) – driving a premium for Growth Stocks.

Impressively, when Growth got this low it led to huge cyclical upturns. (2021?)

HAGW! pic.twitter.com/TdkYx7DU9Q

— Macro Charts (@MacroCharts) December 4, 2020

This chart has never been so relevant.

The macro case for hard assets is the most compelling I have ever seen. pic.twitter.com/kW3ZXMyCG6

— Otavio (Tavi) Costa (@TaviCosta) December 5, 2020

Late in the cycle, yield curve inversion tells you the economy is likely headed for recession…

But historically, it’s always been the steepening to watch out for.

There’s a big diff. (post inversion) between an 80bp & a 200bp+ rise.

Today we’re at a critical juncture. pic.twitter.com/GdaAAQ9yGb

— Julien Bittel, CFA (@BittelJulien) December 4, 2020