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Today’s Summary
Tuesday, June 28th, 2022
Indices: Dow -1.56% | Russell 2000 -1.86% | S&P 500 -2.01% | Nasdaq 100 -3.09%
Sectors: Energy was the only sector that closed higher, gaining +2.70%. Consumer Discretionary lagged, dropping -3.99%.
Commodities: Crude Oil futures moved higher by +2.00% to $111.76 per barrel. Gold futures slipped -0.20% to $1,821 per ounce.
Currencies: The US Dollar Index rose +0.52%.
Crypto: Bitcoin fell -1.48% to $20,393. Ethereum dropped -2.50% to $1,161.
Interest Rates: The US 10-year Treasury yield fell to 3.175%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
https://twitter.com/AlfCharts/status/1541781614816010240
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It’s a daily candlestick chart of the US 10-year Treasury Yield ($TNX), along with the Equities for Rising Rates ETF, ($EQRR). This ETF provides exposure to interest-rate-sensitive stocks. Over 50% of its weighting is in Energy & Financial stocks like Valero, M&T Bank, Marathon Petroleum, Raymond James, Exxon Mobil, and JP Morgan. Alfonso points out that this ETF has already broken down, while the 10-year yield continues to test a key level. As you can see, the two have tracked each other pretty closely in recent years. Will yields follow these rate-sensitive stocks lower?
Quote of the Day
“There are no happy endings in history,
only crisis points that pass.”
– Isaac Asimov
Top Links
Signs of a Botom – The Irrelevant Investor
Michael Batnick points out that stocks will likely bottom before the economic data.
Shorts’ Relative Break – Bespoke
Bespoke examines the recent strength from some of the most heavily shorted stocks.
All Eyes on the Pre-COVID Highs – Research by Potomac
Drew Wells analyzes each of the 11 sectors of the S&P 500.
Doc Copper Pattern Suggesting Another Huge Decline Is To Be Expected? – Kimble Charting Solutions
Chris Kimble takes a look at the breakdown in Copper.
The Chart Report & Friends – What’s Next for Q3?
Join us tomorrow on Twitter Spaces at 4:30 pm EST to talk markets!
Top Tweets
❌❌Big Tech
✅✅Big Oil pic.twitter.com/W5mCFjhUNO
— Jesse Cohen (@JesseCohenInv) June 28, 2022
every stock in the energy sector is green right now on a day where the S&P 500 is down 1.9% pic.twitter.com/Dv5TKtmaWN
— Katie Greifeld (@kgreifeld) June 28, 2022
$SPY back to where we started on Friday pic.twitter.com/9tWn3UQFHQ
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) June 28, 2022
There we go back below the threshold that put the $SPX into a 'bear market'. Let's see how the market's temperature shifts as this retreat gains traction pic.twitter.com/cjRfnCID8q
— John Kicklighter (@JohnKicklighter) June 28, 2022
Russell 1000 Growth vs. Value ratio rolling over right where you would expect it to pic.twitter.com/XfnmcNiL1H
— Scott Brown, CMT (@scottcharts) June 28, 2022
$JNK is not able to catch a bid. High yield spreads continue to widen. pic.twitter.com/yAuzv40XWM
— David Nicoski CMT (@davevermilion) June 28, 2022
$JNK High Yield Bonds had a big down day. A break down of $90 would be historic & negative for the market. Only happened during the 2008 GFC & briefly during the covid crash. A big tell that liquidity is drying up. pic.twitter.com/BKVRe9nSRA
— Victor Riesco, CMT (@Global_Trader) June 28, 2022
Credit Spreads and Volatility have an interesting relationship. If Credit Spreads are on the move, will Volatility follow? $VIX $IEI $HYG $SPY $SPX pic.twitter.com/fMj5W5QUXb
— Sam McCallum (@Honeystocks1) June 28, 2022
Soaring commodities heralded the worst inflation in four decades. Now, a host of commodity prices are starting to crack. pic.twitter.com/jxFIKZLnHT
— Jurrien Timmer (@TimmerFidelity) June 28, 2022
The Ag ETF $DBA carved out a classic distribution pattern as momentum waned. What a clean setup and follow-through. If only they all worked like this. #commodities pic.twitter.com/949Nk15Yf3
— Ian Culley (@IanCulley) June 28, 2022
Are commodities in a bear market (>20% drawdown)?
For 19 of the 39 commodities we track, the answer is yes.
Is the market telling us something?? pic.twitter.com/QPLGdh80na
— Mike Singleton, CFA (@InvictusMacro) June 28, 2022
It has been a washout in gold stocks with 0% of its components trading above their 50d MAV and nearly 0% above their 200d MAV.
Critical price support for GDX at this stage pic.twitter.com/yPZC9EtUnv— conradseric, CMT, CAIA, CEFA (@conradseric) June 28, 2022
The S&P 500 closed down 2% today, its 8th 2% decline of the year. We've already seen more large down days in 2022 than all of 2021. History going back to 1928…$SPX pic.twitter.com/fHJDUkprOm
— Charlie Bilello (@charliebilello) June 28, 2022
You’re all caught up now. Thanks for reading!