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Today’s Summary
Friday, February 3rd, 2023
Indices: Dow -0.38% | Russell 2000 -0.78% | S&P 500 -1.03% | Nasdaq 100 -1.79%
Sectors: All 11 sectors closed lower. Financials led but still inched lower by -0.19%. Consumer Discretionary lagged, dropping -3.08%.
Commodities: Crude Oil futures fell -3.28% to $73.39 per barrel. Gold futures had their worst day in seven months, dropping -2.81% to $1,877 per ounce.
Currencies: The US Dollar Index had its best day in more than three months, rising +1.23% to $102.99.
Crypto: Bitcoin inched lower by just -0.27% to $23,434. Ethereum rose +1.23% to $1,664.
Interest Rates: The US 10-year Treasury yield rose to 3.526%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
With the Value Line Geometric Index $VLG back above the 2018 and August 2022 highs, the path of least resistance is now higher for the median stock ? pic.twitter.com/2StUHMKUGj
— Steven Strazza (@sstrazza) February 3, 2023
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It’s a chart of the Value Line Geometric Index over the past five years. This index has a fancy name but it essentially represents how the median stock is doing. It provides a broader and more accurate depiction of the stock market than something like the S&P 500. It closed the week at nine-month highs, after reclaiming a key level around $600. This level has been a major inflection point in recent years. As Steve points out, the path of least resistance for the median stock is higher as long as the Value Line Geometric Index is over $600.
Quote of the Day
“Bulls make money,
Bears make money,
Pigs get slaughtered.”
– Old Wall Street Adage
Top Links
Technical Analysis of Stocks Week Ending February 3 2023 – AlphaTrends
In this quick video, Brian Shannon recaps this week’s price action and lays out some key levels to watch in the near term.
Tech Leadership Attempting Bullish Breakout, Says Joe Friday – Kimble Charting Solutions
Chris Kimble points out that Semiconductor stocks look poised to continue higher.
Bonds: ‘We are Now in the New Rising Rate Cycle,’ Technical Analyst Says – Yahoo Finance
Legendary technician, Louise Yamada shares her perspective on interest rates and more.
ETF Flow Data Key Takeaways – Strategas Asset Management
In this video, Todd Sohn highlights some key takeaways from recent ETF flows.
New Chapter in the Meme Stock Mania – Bespoke
Bespoke points out that Meme stocks are catching a bid again.
Trendlines > Headlines
The Latest Episode of Trendlines over Headlines is out!
In this week’s episode, Jeff Hirsch of The Stock Traders Almanac returns to the show to break down February seasonality, the January Trifecta, and more!
You can also listen to the podcast version here!
Top Tweets
Weekly Market Mood: Risk-On
1. Stock indexes up 2-7%
2. Bonds down
3. $NDX up fifth week in a row
4. Many indexes above 200 DMA
5. Nascent sets of higher highsBig week ends in big weekly gains, risk appetite is back in a big way.
— Abigail Doolittle (@TheChartress) February 3, 2023
? FRIDAY HEAT pic.twitter.com/SveKEr9LLm
— JE$US (@WallStJesus) February 3, 2023
Weekly $SPX update: giving back some today, but solid gains after last week's move above resistance. Up 7.5% ytd, while the Nasdaq is screaming at +14.5%. pic.twitter.com/eQu0cxcGJT
— Michael Turvey (@MikeTurvey_TDA) February 3, 2023
Nasdaq $QQQ
second biggest 21-day rally in 15 years = +17.9%only the 4th surge like that in two decades… prior instances marked by green circles & all occurred after significant bear markets… pic.twitter.com/I1YSWW5HSS
— David Cox, CMT, CFA (@DavidCoxRJ) February 3, 2023
New Dow Theory ($SPX vs. $COMPQ) flashes a confirmed bullish signal this week as both indexes achieve a new swing high. #notbearish pic.twitter.com/7JkcjqO9uV
— David Keller, CMT (@DKellerCMT) February 3, 2023
Where are we within the downtrend: $RSP (>62%) has retraced more of its 2022 downtrend then $SPY (>38%), $QQQE (>38%), and $QQQ (>23%) pic.twitter.com/Eb5MRJNcst
— Stacey.A.Lee (@BBaxter2020) February 3, 2023
#ES_F, 1d
50% mark. pic.twitter.com/5RfRcnXpNH
— Yuriy Matso (@yuriymatso) February 3, 2023
High beta continues to outperform low beta/volatility names.
Last year at this time was the exact opposite. pic.twitter.com/oPIOdQvzbY
— Ryan Detrick, CMT (@RyanDetrick) February 3, 2023
FTSE 100 $UKX
what a bear market rally in UK stocks breaking out to all time highs #sarcasm pic.twitter.com/JRWZNLAeGi
— Christian Fromhertz ?? (@cfromhertz) February 3, 2023
$DXY 3 Time Frames support bullish reversal … yday's bullish "piercing line" reversal, a false breakdown from new lows, 2day seeing upside follow-through. Weekly "hammer" pattern along the 50% Fib, while the monthly shows yday's low came within 0.4% of big ~100.39 support. pic.twitter.com/gC5hVr3c5R
— brian.joyce.nasdaq (@Nasdaqbjoyce) February 3, 2023
$BTCUSD #Bitcoin S/R flip in play w/ the 200-day SMA envelope. pic.twitter.com/IxQzTj8nOp
— Jake Wujastyk (@Jake__Wujastyk) February 3, 2023
Samesies pic.twitter.com/SZBQn67Iu1
— J.C. Parets (@allstarcharts) February 3, 2023
The financial news is easily a top 5 risk to your long term financial well being. $BTCUSD pic.twitter.com/ZbU6Gka6W9
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 2, 2023
You’re all caught up now. Thanks for reading!