Thursday, January 6th, 2022
Indices: Dow -0.47% | S&P 500 -0.10% | Nasdaq -0.13% | Russell 2000 +0.56%
Sectors: 5 of the 11 sectors closed higher. Energy led, gaining 2.23%. Materials lagged, falling 1.26%.
Commodities: Crude Oil futures rose 2.07% to $79.46 per barrel. Gold futures dropped 1.97% to $1,789 per ounce.
Currencies: The US Dollar Index inched higher by 0.06%.
Interest Rates: The US 10-year Treasury yield continued higher to a nine-month high of 1.725%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Steven Strazza (@sstrazza) January 6, 2022
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It’s a weekly candlestick chart of the Bank ETF, $KBE, over the past 16-years. The heaviest weighted stocks in this ETF include $VOYA, $SBNY, $STL, $CMA, and $WBS. Steve points out that this Bank ETF is flirting with its pre-Financial crisis highs around $60. The recent strength in Banks and Financials has been driven by rising Treasury yields and a steepening yield curve. In a comment to The Chart Report, Steve said, “The banks are loving the fact that interest rates are moving higher. If you take a look at the 10-year yield, it’s attempting to break out of a nine-month base, with resistance around 1.75%. Rising rates might be painful if you’re overweight Growth/Tech stocks, but cyclical areas of the market like Financials and Energy tend to do well in a rising rate environment.”
Quote of the Day
“Go long when stocks reach a new high.
Sell short when they reach a new low”
– Jesse Livermore
Nasdaq Down 3%+ in First Three Days – Bespoke
Bespoke examines what has historically happened when the Nasdaq falls 3% or more in the first three trading days of the year.
Nasdaq vs S&P 500 – All Star Charts
JC Parets explains why the Nasdaq could underperform the S&P 500 in 2022.
Even as Stocks Tickled New Highs, a Historic Thrust in Breadth – SentimenTrader
Jason Goepfert highlights a bullish breadth thrust that just triggered.
Bitcoin Sell-Off Violates Key Support Level and Suggests Additional Downside of 13%, Technical Analyst Says – Business Insider
Katie Stockton offers her technical perspective on Bitcoin after the cryptocurrency took another sharp leg lower yesterday.
Rules for Buying Crashing Growth Stocks – The Irrelevant Investor
Michael Batnick shares his thoughts on the carnage in $ARKK.
— Gil Morales – The Gilmo Report & VoSI (@gilmoreport) January 6, 2022
$SPY – So long as the S&P 500 continues to rise within the red channel, I'll remain bullish. A break below the green trendline could signal a yellow light for risk. A break below the lower-bound of the channel would decrease my risk appetite for equities. Two-day candles: pic.twitter.com/kF13W8ctZA
— Caleb Franzen (@CalebFranzen) January 6, 2022
— Mike Moses, CMT,CMSA (@DominickMike) January 6, 2022
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 6, 2022
Banks vs. Software 👀 pic.twitter.com/BGfcG9oU1b
— Shane C. Murphy (@murphycharts) January 6, 2022
— Brian G (@alphacharts) January 6, 2022
— Bespoke (@bespokeinvest) January 6, 2022
Most important chart for 2022 (besides the daily $SPX, of course)? Ten year yield, hands down. Break above 1.75 opens the door to 2.0+ and note the relative performance of small cap value vs. growth, bottom panel. $TNX $IWN $IWO pic.twitter.com/HEMVRvzMS7
— David Keller, CMT (@DKellerCMT) January 6, 2022
German 10-year yields are the least negative since 2019 and are getting very close to turning positive. pic.twitter.com/T7KVcnqMsM
— Lisa Abramowicz (@lisaabramowicz1) January 6, 2022
— Drew Wells, CMT, CIMA® (@DrewTheCharts) January 6, 2022
I remain constructive on BTC & ETH over the long-term (and still see $100k as fair value for BTC in a few years based on my supply/demand models). But there is no denying that the short-term charts don’t look great. (THREAD) pic.twitter.com/kT1SpGWJTg
— Jurrien Timmer (@TimmerFidelity) January 6, 2022
— Grant Hawkridge (@granthawkridge) January 6, 2022
— Greg Rieben (@gregrieben) January 6, 2022
You’re all caught up now. Thanks for reading!