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Today’s Summary
Monday, June 27th, 2022
Indices: Russell 2000 +0.34% | Dow -0.20% | S&P 500 -0.30% | Nasdaq 100 -0.81%
Sectors: 3 of the 11 sectors closed higher. Energy led by a wide margin, gaining +2.93%. Consumer Discretionary lagged, falling -1.05%.
Commodities: Crude Oil futures rose +1.81% to $109.57 per barrel. Gold futures fell -0.30% to $1,825 per ounce.
Currencies: The US Dollar Index slipped -0.17%.
Crypto: Bitcoin fell -0.89% to $20,840. Ethereum rose +0.71% to $1,206.
Interest Rates: The US 10-year Treasury yield rose to 3.204%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by John Roque of 22V Research (@daChartLife). The S&P 500 has rebounded about 6% over the past six trading days, however, John points out that this should be treated as a bear market rally until proven otherwise. The index is still in a confirmed downtrend, and overhead resistance is lurking around 4000 – 4200. This area acted as support in March, but it became resistance when it failed in early May. The tables below serve as a reminder that double-digit rallies are commonplace in bear markets. These bounces can be seductive, lasting for several weeks before eventually rolling over. At this point, the S&P 500 would have to gain about 23% to return to where it started the year at all-time highs. It’s unlikely to make a stand like that without hitting its head on resistance first.
Quote of the Day
“Successful investing is having everyone agree with you… later.”
– Jim Grant
Top Links
Market Stronger First Half July – Almanac Trader
Jeff Hirsch examines how the major averages have historically performed in July.
A Logical Place to Bounce – Means to a Trend
Austin Harrison points out that the weakest sectors have led the recent rebound.
Oppenheimer’s Ari Wald Charts Out Where You Want to Be in the Energy Space – CNBC
Ari Wald shares his thoughts on the Energy sector after its recent correction.
Healthcare as a Leadership Group – All Star Charts
JC Parets points out that the Healthcare sector is showing relative strength.
The Wonkavator – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most noteworthy technical developments to keep an eye on.
Top Tweets
https://twitter.com/callieabost/status/1541540637157347329
Anybody awake? pic.twitter.com/s43sCObgM9
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) June 27, 2022
Semis still vulnerable pic.twitter.com/32fY1mtpZD
— Strategas (@StrategasRP) June 27, 2022
Short squeeze: since Russell 3000’s most recent trough on 6/16/2022, best-performing members have been those with highest short interest ratio pic.twitter.com/fzRckThFhm
— Liz Ann Sonders (@LizAnnSonders) June 27, 2022
Other than this year, only other time in the past quarter century that both stocks and bonds were down in back-to-back quarters was in 2008.
With echoes of financial crisis seen in price, breadth and liquidity, burden of proof is on the bulls: https://t.co/ECEtJYXgcQ pic.twitter.com/i29Z1goEsw
— Willie Delwiche, CMT, CFA (@WillieDelwiche) June 27, 2022
No indicator is perfect, or uniquely prescient, but here’s one that’s likely to confirm the next durable advance. pic.twitter.com/HIt7ZV4XGR
— Mark Ungewitter (@mark_ungewitter) June 27, 2022
With China coming out of lockdowns will this breakdown in copper prove to be false? Or is copper headed back to the 3.30/3.50 area? #copper #China pic.twitter.com/6AHDrlB1lI
— Greg Rieben (@gregrieben) June 27, 2022
Interestingly enough, #Copper bear markets have accompanied some of the largest up moves in equities including the 2014 secular breakout and the entire 'irrational exuberance' move from 95-99. pic.twitter.com/Gb41Db5vPJ
— Arun S. Chopra CFA CMT? (@FusionptCapital) June 27, 2022
Cotton futures are now down >35% since the CRB index peaked on June 10th. $CT_F #commodities pic.twitter.com/1THAUOk3xW
— Ian Culley (@IanCulley) June 27, 2022
Laugh all you want, but cotton's recent crash should have bond traders on high alert.
Cotton prices tend to lead US 10Y yields.
In every single divergence over the past 6 years, cotton has ended up being "right" pic.twitter.com/dQzCGUNnRF
— Contrarian Investors (@lincolnsamelson) June 27, 2022
LOL LOL LOL LOL Yes, percentage-wise that is a spike $HOOD pic.twitter.com/PYGDZ7TWoP
— Michael Kahn, CMT (@mnkahn) June 27, 2022
You’re all caught up now. Thanks for reading!