Sponsored By:
Today’s Summary
Thursday, February 2nd, 2023
Indices: Nasdaq 100 +3.56% | Russell 2000 +2.06% | S&P 500 +1.47% | Dow -0.11%
Sectors: 7 of the 11 sectors closed higher. Communications led by a wide margin, jumping +6.57%. Energy lagged, falling -2.28%.
Commodities: Crude Oil futures fell -0.69% to $75.88 per barrel. Gold futures fell -0.62% to $1,931 per ounce.
Currencies: The US Dollar Index rose +0.56% to $101.74.
Crypto: Bitcoin fell -1.00% to $23,498. Ethereum was flat and continues to trade at $1,644.
Interest Rates: The US 10-year Treasury yield fell to 3.395%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The number of sectors trading above their 200-day moving averages has gone from zero in September to ten as of yesterday. All prior zero-to-ten cases since 1973 are marked on the chart and have generally been good buying opportunities. pic.twitter.com/QTkYXWg86Y
— Rob Anderson (@_rob_anderson) February 2, 2023
Today’s Chart of the Day was shared by Rob Anderson of Ned Davis Research (@_rob_anderson). Sector breadth has made a notable improvement over the past four months. Rob points out that 10 of the 11 sectors are currently above their 200-day moving averages, with the Utilities sector being the odd man out. Sector breadth was completely washed out at the end of September with zero of the 11 sectors above their 200-day moving averages. The vertical lines mark all of the instances over the past five decades where sector breadth went from 0 to 10 like this. It’s a fairly rare occurrence, with only 14 prior instances, but it has generally marked a good buying opportunity for the S&P 500. This is yet another signal to add to the growing list of bullish improvements.
Quote of the Day
“History must repeat itself because we pay such little attention to it the first time.”
– Blackie Sherrod
Top Links
This Won’t End Well? – The Weekly Grind
Sam McCallum highlights some key charts to keep an eye on.
An Imbalanced Reaction to the FOMC – All Star Charts
Ian Culley examines how Growth Stocks and Bonds reacted to yesterday’s Fed meeting.
Another Important Statistic Worth Watching – CappThesis
Frank Cappelleri takes a look at the Nasdaq’s strong start to 2023.
Sentiment Streak Over – Bespoke
Bespoke breaks down the results of the latest sentiment surveys.
You Gotta Love a Good Wedgie – StockCharts.com
Julius de Kempenaer points out that the Consumer Discretionary sector is breaking out of a falling wedge.
Top Tweets
Bad breadth? (but small caps crushing it so…) pic.twitter.com/kauNO6FHjY
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 2, 2023
There have been 36 Golden Crosses on the S&P 500 since 1950.
Today will be number 37.
Not wildly bullish returns, but sure doesn't appear to be bad either.
Up a yr later 78% of the time and up a median of 12.7%. pic.twitter.com/Ji60PbmAj5
— Ryan Detrick, CMT (@RyanDetrick) February 2, 2023
Not forecasting but the last time the S&P 500 retraced more than 50% of its then-bear market, it was supposed to be a 100% chance the bull was back. pic.twitter.com/YZAChjejr9
— Michael Kahn, CMT (@mnkahn) February 2, 2023
The $NDX.X has advanced close to 20% with a declining 200DMA (dark blue) and is now up to the ⚓️VWAP from the ATH in 21
This is also a 38.2% retrace of that high to the October 22 low
Momentum is higher but its getting extended, protect gains
tune into @FoxBusiness w @cvpayne pic.twitter.com/ECQ9DP8gjN
— Brian Shannon, CMT (@alphatrends) February 2, 2023
$QQQ beating $DIA by more than 6% last 3 days pic.twitter.com/9U7ZWbcjAk
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 2, 2023
Did you know that the S&P 500 Technology sector has more stocks with a rising 200-day average than the S&P 500?
51.32% versus 43.91%. pic.twitter.com/RupgCxSyeN
— Dean Christians, CMT (@DeanChristians) February 2, 2023
Everyone has been chasing growth.
Meanwhile:
Large-cap value: new all-time high.
Mid-cap value: new all-time high.
Small-cap value: less than 4% from a new high. pic.twitter.com/lYiAas4mhc
— Willie Delwiche, CMT, CFA (@WillieDelwiche) February 2, 2023
The best kept “secret” in the market?
How about Mid-cap value?
New all-time highs and a “World Beater” since the Covid lows.
Too good to last? I guess we'll find out…#sentimentrader pic.twitter.com/y0LGLEePjb— Jay Kaeppel (@jaykaeppel) February 2, 2023
There is a GameStop-esque short interest of 77% in the crypto bank, Silvergate $SI as price enters a massive memory gap zone on the price chart ? pic.twitter.com/103zRz1zGX
— Steven Strazza (@sstrazza) February 2, 2023
stocks up, VIX up pic.twitter.com/9faSWQYBxY
— Katie Greifeld (@kgreifeld) February 2, 2023
Meme Mania has now infected the $SPX
with $VIX up, market upOften a signal of upside exuberance. pic.twitter.com/RtBlC5Si0n
— SpotGamma (@spotgamma) February 2, 2023
Nasdaq futures are listing after their epic run this past session. Let's see if the Apple, Google and Amazon retreat extends into Friday's open pic.twitter.com/K2lhgGosAf
— John Kicklighter (@JohnKicklighter) February 2, 2023
Returns from 2022 bottoms:
Facebook +107%
Netflix +120%
Carvana +367%
Peloton +133%
Shopify +96%
Wayfair +145%
Tesla +74%
Redfin +183%
Zillow +73%— Ben Carlson (@awealthofcs) February 2, 2023
You’re all caught up now. Thanks for reading!