Wednesday, January 12th, 2022
Indices: Dow +0.11% | S&P 500 +0.28% | Nasdaq +0.23% | Russell 2000 -0.82%
Sectors: 10 of the 11 sectors closed higher. Materials led, gaining 1.01%. Health Care was the only sector that closed lower, falling 0.29%.
Commodities: Crude Oil futures continued higher by 1.75% to a two-month high of $82.64 per barrel. Gold futures rose 0.48% to $1,827 per ounce.
Currencies: The US Dollar Index dropped 0.64% to a fresh two-month low.
Interest Rates: The US 10-year Treasury yield inched lower to 1.736%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Ian McMillan, CMT (@the_chart_life) January 12, 2022
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). It’s a relative strength chart of Emerging Markets vs. the S&P 500 over the past year and a half ($EEM/$SPX). Emerging Markets underperformed US Stocks by a wide margin in 2021. $EEM lost more than 3% while the S&P 500 gained about 27%. However, things are off to a much different start in 2022. $EEM has outperformed the S&P in 7 of the 8 trading days so far this year, by a margin of about 5%. Ian points out that $EEM is currently testing a well-defined downtrend line that has been in place for nearly a year now. If $EEM can break out of this relative downtrend, it would be a big improvement for this unloved asset class.
Quote of the Day
“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die of euphoria.”
– Sir John Templeton
Market Generally Stronger Before Martin Luther King Jr. Day than After – Almanac Trader
Jeff Hirsch examines how Stocks have historically performed around Martin Luther King Jr. Day, which is this coming Monday.
What The Violent Rotation out of Growth Stocks Means for Value – SentimenTrader
Jason Goepfert explains why Value could continue to outperform Growth over the next few months.
Battle Lines Are Being Drawn – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
Communication Services Regaining Its Footing – Bespoke
Bespoke points out that breadth is starting to improve in the Communications sector.
Was This 1987 All Over Again? – All Star Charts
JC Parets shares his thoughts on recent price action in the Crypto markets.
Midterm years pullback 17.1% on average during the year, the most out of the 4 year cycle.
But if you are willing to hold, the S&P 500 is up 32% a year later.
Have a plan, as this year might get rocky. pic.twitter.com/rItfUakMO8
— Ryan Detrick, CMT (@RyanDetrick) January 12, 2022
— brian.joyce.nasdaq (@Nasdaqbjoyce) January 12, 2022
S&P 500 Energy sector is having its best month relative to S&P 500 since February 2021
[Past performance is no guarantee of future results] pic.twitter.com/e1KbULTlK9
— Liz Ann Sonders (@LizAnnSonders) January 12, 2022
— Ian Culley (@IanCulley) January 12, 2022
— Jason (@3PeaksTrading) January 12, 2022
— Greg Rieben (@gregrieben) January 12, 2022
And just since yesterday morning. pic.twitter.com/2W5X0EqBu3
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 12, 2022
Natural Gas perspective from the seasonal side … All is good now but don't marry your positions … note a reversal typically takes place in January. pic.twitter.com/1I1tvnzwb2
— David Stendahl (@David_Stendahl) January 12, 2022
is $40k the new $30k? The Fed’s hawkish stance on inflation has had broad impact. With the liquidity-driven momentum plays under pressure, it’s not a total shock that crypto has corrected. So what’s next for bitcoin? (THREAD) pic.twitter.com/vnPiKY82x1
— Jurrien Timmer (@TimmerFidelity) January 11, 2022
— Steven Strazza (@sstrazza) January 12, 2022
You’re all caught up now. Thanks for reading!