Thursday, January 13th, 2022
Indices: Dow –0.49% | S&P 500 -1.42% | Nasdaq -2.51% | Russell 2000 -0.76%
Sectors: 3 of the 11 sectors closed higher. Utilities led, gaining 0.49%. Tech lagged, dropping 2.59%.
Commodities: Crude Oil futures fell 0.63% to $82.12 per barrel. Gold futures slipped 0.32% to $1,821 per ounce.
Currencies: The US Dollar Index fell 0.13% to a fresh two-month low.
Interest Rates: The US 10-year Treasury yield dropped to 1.706%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Matthew Timpane, CMT (@mtimpane) January 13, 2022
Today’s Chart of the Day was shared by Matthew Timpane (@mtimpane). It’s a ratio chart of the Energy Sector vs. the S&P 500 over the past six years ($XLE/$SPX). Energy has been the worst-performing sector over the past 3, 5, and 10 years. However, the long-term trend of underperformance has been in the process of reversing over the past year or so. It was the best performing sector in 2021, gaining more than 50%, and it has continued to outperform by a wide margin in the new year. It’s already up more than 13% in the first two weeks of 2022, while the S&P is down about 2%. Matthew points out that the ratio is currently testing an important resistance level after forming a bottoming pattern known as an inverse head & shoulders. If it does break out here, it would be further confirmation that a long-term trade change is truly underway.
Quote of the Day
“When a trader starts to feel really smart, he or she is headed for a huge drawdown.”
– Peter Brandt
Busting Two Myths: Why Higher Yields And Rate Hikes Aren’t Always Bad – LPL Financial Research
The team at LPL Financial Research debunks the idea that higher rates are bad for Stocks.
Energy Stocks to Oil Ratio Below Average – Bespoke
Bespoke shares a data point that suggests the Energy sector has further upside.
The Buck Loses Its Trend, While Commodities Gain Theirs – SentimenTrader
Jason Goepfert examines the recent weakness in the Dollar, and the strength in Commodities.
Useful Utes – StockCharts.com
Julius de Kempenaer highlights the recent strength in the Utilities sector.
Bear Markets Suck – The Irrelevant Investor
Michael Batnick shares some wise words on bear markets.
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 13, 2022
— Patrick Rooney (@patrickrooney) January 13, 2022
— HostileCharts (@HostileCapital) January 13, 2022
— Jim Denholm, CMT (@denholm_jim) January 13, 2022
— David Keller, CMT (@DKellerCMT) January 13, 2022
Metals & Mining on the run pic.twitter.com/kvUal6KhUs
— Drew Wells, CMT, CIMA® (@DrewTheCharts) January 13, 2022
— Steven Strazza (@sstrazza) January 13, 2022
Is it time for copper? pic.twitter.com/JtnRFI07Nq
— Alfonso Depablos (@AlfCharts) January 13, 2022
Interest rates are trending down today, yet Pure Value (+0.9%) is beating Pure Growth (-0.7%). Partly because real rates aren't moving down, inflation expectations are. Either way, a departure from the usual pattern. pic.twitter.com/UeFgt2wSjr
— Liz Young (@LizYoungStrat) January 13, 2022
Real yields on 10-year bonds are the least negative now since April 2021. pic.twitter.com/amNkbQJNgH
— Lisa Abramowicz (@lisaabramowicz1) January 13, 2022
There goes all of ARK's alpha since Q1 2020 pic.twitter.com/16j6hz5TYC
— Pratty (@PrattyCharts) January 13, 2022
— Greg Rieben (@gregrieben) January 13, 2022
— World Famous Nature Boy (@Xiphos_Trading) January 13, 2022
Love how value made a 20 year relative low after everyone started searching for gamma squeezes. pic.twitter.com/AgU9tNONi4
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) January 13, 2022
You’re all caught up now. Thanks for reading!