Tuesday, August 2nd, 2022
Indices: Russell 2000 -0.05% | Nasdaq 100 -0.30% | S&P 500 -0.67% | Dow -1.23%
Sectors: All 11 sectors closed lower. Communications led but still fell -0.16%. Real Estate lagged, dropping -1.32%.
Commodities: Crude Oil futures rose +0.56% to $94.42 per barrel. Gold futures inched higher by +0.11% to $1,790 per ounce.
Currencies: The US Dollar Index gained +0.89%.
Crypto: Bitcoin fell -0.83% to $23,085. Ethereum rose +0.91% to $1,646.
Interest Rates: The US 10-year Treasury yield reversed higher to 2.752%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) August 2, 2022
Today’s Chart of the Day was shared by Arun Chopra (@FusionptCapital). It’s a 15-min candlestick chart of AMTD Digital ($HKD) since its public debut on July 15th. The stock has gone parabolic, surging nearly 13,000% from $13 to $1,679 in less than a month. At one point today, this little-known company surpassed Facebook in market cap. It’s also suspicious that $HKD’s parent company, $AMTD, has a terrible track record underwriting IPOs. This reminds us of something that the legendary technician, Bob Farrell, once said – “Parabolic advances usually go further than you think, but they do not correct by going sideways.” In other words, this thing could continue higher in the short term, but once the momentum disappears, it will likely drop as fast as it rose.
Quote of the Day
“He who wishes to be rich in a day will be hanged in a year.”
– Leonardo da Vinci
Recent Breakouts Could Contribute to a More Extended Relief Rally, Says Fairlead’s Stockton – CNBC
Katie Stockton shares her outlook on the S&P 500 and more.
Mixed Bag – Research by Potomac
Drew Wells analyzes all 11 sectors of the S&P 500.
Crude Oil Declines Into Important Price Support! – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of Crude Oil.
The Price of Admission – A Wealth of Common Sense
Ben Carlson put this year’s volatility into perspective.
Daily Mkt Mood: Risk-Off
Stocks end choppy day lower as bond yields surge on ‘tough talk’ from the Fed.
— Abigail Doolittle (@TheChartress) August 2, 2022
— Sam McCallum (@Honeystocks1) August 2, 2022
Your median stock just retested the highs that had been resistance for over 2 decades pic.twitter.com/fwjyTEm8Jj
— J.C. Parets (@allstarcharts) August 2, 2022
.@NDR_Research's Cycle Composite for 2022 has been spot on. Based on a combination of the 1-yr cycle, 4-yr Presidential cycle, and 10-yr Decennial cycle, the composite provides a good view of seasonal tendencies. It isn't a primary input for us, but can provide useful context. pic.twitter.com/1g7tJTJ45g
— Day Hagan Asset Mgt (@DayHagan_Invest) August 2, 2022
— Katie Stockton, CMT (@StocktonKatie) August 2, 2022
— Oliver Renick (@OJRenick) August 2, 2022
Today's rise in the 10-year Treasury yield is the biggest in 5 years, save only two days at the height of the Covid lockdown, and the Monday in June when the Fed leaked its intention to hike by 75bps to the WSJ. pic.twitter.com/qvgzDsVWA6
— John Authers (@johnauthers) August 2, 2022
A chart of the 10-year yield with Fibs.
The blue line is a 50% of the rise in rates that started on March 7 and ended in mid-June.
Technically it looks like the 50% line (2.58%) was soundly "rejected."
If so, it suggests the rally in bonds over the last six weeks is over. pic.twitter.com/qMPwmuK8tK
— Jim Bianco biancoresearch.eth (@biancoresearch) August 2, 2022
— Drew Wells, CMT, CIMA® (@DrewTheCharts) August 2, 2022
10yr-3m nears zero and the 10yr-2yr is at the lowest inversion level since September 2000. pic.twitter.com/Jmz47koQyj
— Andrew Thrasher, CMT (@AndrewThrasher) August 2, 2022
No, this is not the Hong Kong dollar….. pic.twitter.com/jHtnf0HJTx
— Jim Carroll (@vixologist) August 2, 2022
AMDT Digital $HKD passes Facebook at $435 billion market cap. One more trading halt and resumption of trading and AMDT will be larger than Berkshire Hathaway. Why spend 57 years compounding when you can get there in two weeks?
The casino is alive and well. pic.twitter.com/AWkaCdIgLA
— Christopher Bloomstran (@ChrisBloomstran) August 2, 2022
You’re all caught up now. Thanks for reading!