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Today’s Summary
Wednesday, April 6th, 2022
Indices: Dow -0.42% | S&P 500 -0.97% | Russell 2000 -1.42% | Nasdaq 100 -2.17%
Sectors: 5 of the 11 sectors closed higher. Utilities led, rising +1.99%. Consumer Discretionary lagged, falling -2.55%.
Commodities: Crude Oil futures dropped -5.62% to $96.23 per barrel. Gold futures slipped -0.23% to $1,923 per ounce.
Currencies: The US Dollar Index rose +0.15% to its highest in nearly two years.
Crypto: Bitcoin fell -3.56% $43,882. Ethereum dropped -5.20% to $3,229.
Interest Rates: The US 10-year Treasury yield rose to a three-year high of 2.601%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Bonds oversold throughout the curve pic.twitter.com/U1mUibJwgJ
— Strategas (@StrategasRP) April 6, 2022
Today’s Chart of the Day was shared by Strategas Research Partners (@StrategasRP). Strategas points out that the sell-off in Bonds is reaching extreme proportions. All three of these popular Treasury Bond ETFs ($SHY, $IEF, and $TLT) are more than 3 standard deviations below their 200-day moving average. It’s rare to see Bonds so stretched to the downside, but mean reversion has started to work its magic after reaching these levels in the past. The trend for Bonds is still clearly lower, but the stage has been set for a potential rebound.
Quote of the Day
“I used to think that if there was reincarnation, I wanted to come back as the President or the Pope, or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.”
– James Carville
Top Links
Dow Jones Industrials Struggling at Major Fibonacci Level – Kimble Charting Solutions
Chris Kimble points out that the Dow Jones Industrial Index has been stalling at the 423.6% Fibonacci extension of the 2007-2009 decline.
It’s Getting Harder to Make the Bullish Case – Potomac Fund Management
Dan Russo highlights some key takeaways from the current market environment.
Stock Market Analysis April 6, 2022 – AlphaTrends
In this video, Brian Shannon breaks down this week’s price action so far and lays out some key levels to watch in the near term.
Breadth Deteriorates for King Dollar – All Star Charts
The team at All Star Charts takes a look at a breadth divergence in the US Dollar Index.
Which Stocks to Target, Avoid Before Easter – Schaeffer’s Investment Research
Rocky White examines how the S&P 500 and its components have fared the week before Easter.
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Top Tweets
Daily Market Mood: Risk-Off
2 & 5-yr yields reversing lower post-FOMC minutes may signal yields dislocated at recent highs, cld come in, maybe a lot = bonds rally.#Oil -5%, sub-50 DMA prob risk-off as signal of more volatility.
Stocks down for 2nd day stands out the least.
— Abigail Doolittle (@TheChartress) April 6, 2022
The market is more volatile than Will Smith today. $SPY tested its 20dma and held for now. Let’s see which way it will follow through tomorrow. Defensive sectors like utilities, healthcare, and consumer staples continue to lead. @MarketSmith #IBDPartner https://t.co/S50d4FROUK pic.twitter.com/OzKCzpiEIH
— ivanhoff.com (@ivanhoff2) April 6, 2022
Defensive day. Again. pic.twitter.com/17uJm2N92s
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) April 6, 2022
Utes now up ~8% over the last two weeks. $XLU pic.twitter.com/d5kIb30s5o
— Bespoke (@bespokeinvest) April 6, 2022
The Dow Jones Transportation Average, which includes cos like American Airlines and FedEx– has fallen around 12% over the last six days, worst stretch since March 2020 pic.twitter.com/GcmMkfKN2P
— Gunjan Banerji (@GunjanJS) April 6, 2022
A breakdown here probably would be bad for more than just this transport ETF $IYT pic.twitter.com/gQbmFXY68e
— Michael Kahn, CMT (@mnkahn) April 6, 2022
S&P 500 Low Volatility Index
Eyeing new all-time highs and fresh 52-week relative highs. $SPX $SPLVI pic.twitter.com/dNu0BIXD50
— Shane C. Murphy, CMT (@murphycharts) April 6, 2022
The German DAX might be one of the most important charts in the world.
At a big level here and if it can get above this trendline, that'd be a great sign for stocks globally imo.
What is your most important chart? pic.twitter.com/fPtjxE1vmY
— Ryan Detrick, CMT (@RyanDetrick) April 6, 2022
With rates rising, the Equities For Rising Rates ETF ($EQRR) isn't keeping up recently. pic.twitter.com/WkuWIgGIeQ
— Andrew Thrasher, CMT (@AndrewThrasher) April 6, 2022
Who do we trust here?
Bond market – $TNX (10yr yield)
Or stock market – $KBE vs $XLU (Banks vs Utes)
For now, stocks are calling BS on the rally in rates… pic.twitter.com/TgdCK5OWc0
— Steven Strazza (@sstrazza) April 6, 2022
Bonds just dont have selloffs like this very often. $AGG is getting killed. pic.twitter.com/MMq5bDV7Lh
— Michael Antonelli (@BullandBaird) April 6, 2022
$IEF (iShares 7-10 yr Treasury ETF) is in its worst drawdown of all time. Here is the historical drawdown chart as of yesterday's close. Its down another 0.5% today so far. #flightfromquality pic.twitter.com/OqM2PwjSaU
— Quantifiable Edges (@QuantifiablEdgs) April 6, 2022
Still no love for #PotStocks.
This is what a relentless downtrend looks like…$MSOS pic.twitter.com/UGlrUDV8wZ
— Greg Rieben (@gregrieben) April 6, 2022
You’re all caught up now. Thanks for reading!