Sponsored By:
Today’s Summary
Thursday, July 28th, 2022
Indices: Russell 2000 +1.34% | S&P 500 +1.21% | Dow +1.03% | Nasdaq 100 +0.92%
Sectors: 10 of the 11 sectors closed higher. Real Estate led, gaining +3.69%. Communications was the only sector that closed lower, falling -1.14%.
Commodities: Crude Oil futures moved lower by -0.86% to $96.42 per barrel. Gold futures jumped +2.91% to $1,769 per ounce.
Currencies: The US Dollar Index fell -0.25%.
Crypto: Bitcoin gained +4.25% to $23,945. Ethereum rose +6.51% to $1,744.
Interest Rates: The US 10-year Treasury yield dropped to a 3-month low of 2.680%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
WHY MARKETS DON'T CARE ABOUT YOUR RECESSION WORRIES ⬇ pic.twitter.com/cdX3MKjDkY
— Callie Cox (@callieabost) July 28, 2022
Today’s Chart of the Day was shared in a note by Callie Cox of eToro (@callieabost). Everybody including The President, Cardi B, and your Uncle is confused over whether we’re in a recession or not, but does it really matter at this point? Callie reminds us that the stock market is usually a few steps ahead of the economic data. On average, The S&P 500 peaks 6-months before the start of a recession, and it bottoms about 3-months before the end of a recession. It’s played out pretty similarly so far in this cycle considering, the S&P 500 peaked on the first trading day of the year, and here we are 7-months later. Recession or not, today’s GDP print just confirms what the S&P 500 has been saying for months. Nobody knows for sure if the S&P 500 has bottomed yet, but it will likely do so before the economic data and headlines improve.
Quote of the Day
“The stock market is a leading economic indicator. The stock market will tell you what the economy is going to do; the economy will not tell you what the stock market is going to do.”
– Walter Deemer
Top Links
The Recession Debate – Means to a Trend
Austin Harrison points out that the ongoing recession debate is somewhat pointless.
Worst Year for Sentiment on Record – Bespoke
Bespoke breaks down the latest AAII Sentiment Survey.
Are Stocks Bottoming? – HoneyStocks
Sam McCallum highlights a few noteworthy chart setups.
What Bitcoin Needs to Thrive – All Star Charts
JC Parets examines the relationship between the US Dollar and Bitcoin.
Top Tweets
The S&P 500 gained 3.9% on the day of the Fed hike and following day.
That is officially the best rally after a hike going back to 1970 (Bloomberg data).
— Ryan Detrick, CMT (@RyanDetrick) July 28, 2022
This latest bear-market rally is up 11%. pic.twitter.com/gqawD9Qrdp
— Eddy Elfenbein (@EddyElfenbein) July 28, 2022
It's a constructive intermediate-term outlook, but there is still a ton of price history to the left to navigate…$SPY $SPX $QQQ $NDX $DIA $DJIA pic.twitter.com/noSUcV1S2p
— Ian McMillan, CMT (@the_chart_life) July 28, 2022
Ever so tiny recent bounce in the 50-day MA of Cons Discretionary/Cons Staples ratio (bottom chart) is brewing. Way too early to know if it's lasting, but a good cyclical market indicator to watch. pic.twitter.com/jx19BvJ0Jd
— Liz Young (@LizYoungStrat) July 28, 2022
The markets up big today!
You know, all those super exciting high-risk high-growth sectors like Utilities and Staples and Materials!
…wait a second, hang on… ? pic.twitter.com/Y4kBEWUjXT
— Grayson Roze (@GraysonRoze) July 28, 2022
Big single-day rallies don’t guarantee a new cyclical advance. Breadth thrust, breadth recovery, and/or price momentum are needed to support the case. pic.twitter.com/C3liUdQ4WC
— Mark Ungewitter (@mark_ungewitter) July 28, 2022
The price of gold held the line. #Gold $GLD $GDX pic.twitter.com/njyHeW29WH
— Greg Rieben (@gregrieben) July 28, 2022
ETH +96% from the June low pic.twitter.com/En59cPPTmM
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 28, 2022
$ETH back to the scene of the crime. I'm blindly bullish though. pic.twitter.com/4QWeY4fz17
— petr.bz (@petr_bz) July 28, 2022
Hmm… there’s been a change in the top 10 U.S. market caps. RIP $META pic.twitter.com/GFEkK7XQQv
— Jay Woods (@JayWoods3) July 28, 2022
— Sean Brown (@Sean_YCharts) July 28, 2022
You’re all caught up now. Thanks for reading!