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Today’s Summary
Thursday, May 19th, 2022
Indices: Russell 2000 +0.08% | Nasdaq 100 -0.44% | S&P 500 -0.58% | Dow -0.75%
Sectors: 3 of the 11 sectors closed higher. Materials led, gaining +0.71%. Consumer Staples lagged, falling -1.78%.
Commodities: Crude Oil futures moved higher by +2.66% to $109.89 per barrel. Gold futures rose +1.38% to $1,841 per ounce.
Currencies: The US Dollar Index dropped -1.00%.
Crypto: Bitcoin rebounded +5.24% to $30,171. Ethereum rose +4.92% to $2,006.
Interest Rates: The US 10-year Treasury yield fell to 2.839%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Talk about a big catalyst for a recovery in risk assets if this turns into a failed move…$DXY pic.twitter.com/UQ59TAdvsU
— Louis Sykes (@haumicharts) May 19, 2022
Today’s Chart of the Day was shared by Louis Sykes (@haumicharts). A couple of weeks ago, the Dollar Index broke through long-term resistance around $104, hitting its highest level in two decades. However, Louis points out that it’s beginning to look like a failed breakout. As we know, failed breakouts are often followed by sharp moves in the opposite direction, which in this case is lower. The Dollar’s relentless rise has put pressure on Stocks, and other risk assets this year. A potentially weaker Dollar could be the catalyst that bulls need for a rebound rally in the coming weeks.
Quote of the Day
“In investing it is never wrong to change your mind. It is only wrong to change your mind and do nothing about it.”
– Seth Klarman
Top Links
Sentiment Little Changed – Still Bearish – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Fibonacci Retracement Levels – Almanac Trader
Jeff Hirsch lays out some key Fibonacci levels to watch on the S&P 500.
Unique Commodity Indicator Pointing to Treasury Bond Rally – Kimble Charting Solutions
Chris Kimble points out that the Copper/Gold Ratio is hinting at a pullback in Interest Rates.
Bonds Reach a Critical Inflection Point – All Star Charts
The team at All Star Charts takes a look at a potential rebound for Bonds.
Top Tweets
Daily Market Mood: Mixed/Uncertain
Lots of little whipsaws led to smaller losses for stocks, $VIX sub-30 is less worried.
Dollar -1% w/ yields in may be sign of things to come, perhaps #NASDAQ tailwind.#Bitcoin up & technically poised for $40k.
Happy Options Expiration Eve!
— Abigail Doolittle (@TheChartress) May 19, 2022
The S&P 500 is down 18.2% in the first 96 trading days of 2022, the worst start to a year since 1940. $SPX pic.twitter.com/S89AfZ5DmD
— Charlie Bilello (@charliebilello) May 19, 2022
$RSP vs $SPY: new recovery highs for equal-weight vs cap-weight. pic.twitter.com/mBsJNIBpYi
— Willie Delwiche, CMT, CFA (@WillieDelwiche) May 19, 2022
FAAMG stocks continue to weigh on the market so much so that even with yesterday's 4% drop, the $SPD Adv-Dec line still is above the March low. pic.twitter.com/hQ6v0OXcUY
— Andrew Thrasher, CMT (@AndrewThrasher) May 19, 2022
Capitulation?!? $SPX advance-decline line still hasn't broken its low from March. Things could certainly get much worse before they get better. pic.twitter.com/Ked9sFCT46
— David Keller, CMT (@DKellerCMT) May 19, 2022
They are still taking consumer staples out behind the woodshed. Not a good sign $XLP pic.twitter.com/8ZJzfKbuC5
— Michael Kahn, CMT (@mnkahn) May 19, 2022
Will we see these energy stocks resolve higher from their continuation patterns?$COP $CVX $OXY $XOM pic.twitter.com/fDvaPDTUz6
— Alfonso Depablos (@AlfCharts) May 19, 2022
Gold: "To the Penny" pic.twitter.com/tqRzbdSdca
— Carter Braxton Worth (@CarterBWorth) May 19, 2022
The boomer trade is still alive.#gold $GLD pic.twitter.com/uuZ9H7TEvs
— Greg Rieben (@gregrieben) May 19, 2022
This chart is just 'WOW'! #Walmart has lost a quarter of its stock market value in less than a month. That's Walmart, not Robinhood, Gamestop, or ARKK. pic.twitter.com/gQn3NQKWCn
— jeroen blokland (@jsblokland) May 19, 2022
THE COW FACTOR: the ETFs w/ tickers named after cows are crushing the S&P 500 this year and they all track dif things… $COW $MOO $COWZ pic.twitter.com/tGJ7QWCE19
— Eric Balchunas (@EricBalchunas) May 19, 2022
You’re all caught up now. Thanks for reading!