Wednesday, September 22nd, 2021
Indices: US Stocks closed higher in today’s session, with the Dow rebounding 338 points or 1.00%. The S&P 500 and Nasdaq rose 0.95% and 1.02%, respectively. The Russell 2000 outperformed, gaining 1.48%.
Sectors: 9 of the 11 sectors closed higher. Energy led by a wide margin, rising 3.08%. Utilities lagged, ticking lower by just 0.06%.
Commodities: Crude Oil futures moved higher by 2.47% to $72.23 per barrel. Gold futures were flat and continue to trade around $1,779 per ounce.
Currencies: The US Dollar Index gained 0.26%.
Interest Rates: The 10-year US Treasury yield fell to 1.304%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
High Yield spreads not sniffing out the "Lehman" moment just yet. pic.twitter.com/0GfwrEKGX9
— Dan Russo, CMT (@DanRusso_CMT) September 22, 2021
Today’s Chart of the Day was shared by Dan Russo (@DanRusso_CMT). It’s a chart of the CCC High Yield Bond spread over the past 15 years. A Chinese Real Estate firm by the name of Evergrande has been dominating headlines this week, as many speculate whether the company’s financial troubles will spill over into the US markets. Some have drawn dramatic comparisons to Lehman Brothers in 2008 and the Long-Term Capital Management implosion in 1998. Terms like “contagion” and “systemic risk” have been tossed around left and right these past few days. If Evergrande were to pose a systemic risk to our financial system, we probably would’ve seen the credit markets react by now, but as Dan points out, High Yield spreads are hovering near their lowest levels since 2014, indicating no major signs of stress.
Quote of the Day
“Care and diligence bring luck.”
– Thomas Fuller
What Are The Charts Saying About The Markets Next Big Move? – Fox Business News
In this clip, Andrew Thrasher offers his technical perspective on this week’s price action.
IPO ETF Strong Recently – Bespoke
Bespoke points out that the IPO ETF, $IPO, has been exhibiting relative strength recently.
Will Investors Turn to the Yen? – All Star Charts
The team at All Star Charts looks at the Japanese Yen for signs of risk-off behavior.
Freeport McMoRan (FCX) Forming a Worrisome Stock Price Pattern – Kimble Charting Solutions
Chris Kimble points out that one of the largest mining stocks, Freeport McMoRan ($FCX), is forming a bearish head & shoulders pattern.
10 Reasons to Believe the Correction May Not Be Over Yet – SentimenTrader
Jay Kaeppel shares 10 seasonality charts that suggest further weakness could be in store for stocks over the next few weeks.
Stocks rise on first day of fall pic.twitter.com/fwScOe227U
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) September 22, 2021
Best day in two months. pic.twitter.com/Ve9ALRk8dv
— Eddy Elfenbein (@EddyElfenbein) September 22, 2021
A short-term chart I'm watching….
The 50-period EMA has been short-term resistance on counter-trend swings during the current drop in equities with momentum holding in a bearish range on the 1-hr chart for $SPX pic.twitter.com/2feANCw7jG
— Andrew Thrasher, CMT (@AndrewThrasher) September 22, 2021
— Bailey.Baxter2020 (@BBaxter2020) September 22, 2021
Dow Theory close to generating a sell signal, with transports breaking July/Aug lows but industrials not quite achieving a new swing low. $INDU < 33K would generate the sell signal. $TRAN $DJIT $DJIA pic.twitter.com/CxaqSW9Lgm
— David Keller, CMT (@DKellerCMT) September 22, 2021
— Steven Strazza (@sstrazza) September 22, 2021
$IWM Here's a study looking at the next month's returns on $IWM when <20% of the S&P Smallcap 600 components are above their respective 20 dma. (Level hit recently.) N = 15, avg final return = 5.4%, median = 6.3%.https://t.co/Q7R3LSbvHU via @MarketCharts
— Jonathan Harrier, CMT (@jonathanharrier) September 22, 2021
$FFTY IBD 50 ETF
continues to behave differently than the overall mkt +2.2% today, and if a growth trader, there are plenty of setups in this space right now
— Christian Fromhertz (@cfromhertz) September 22, 2021
— Willie Delwiche (@WillieDelwiche) September 22, 2021
Here comes the dollar, about to break aggressively higher. Hang on! pic.twitter.com/NUikNJtXlF
— James Brodie CMT (@jamesrbrodie) September 22, 2021
— Ian McMillan, CMT (@the_chart_life) September 22, 2021
what the hell pic.twitter.com/hSSDa1jumn
— Zack Voell (@zackvoell) September 22, 2021
You’re all caught up now. Thanks for reading!