Tuesday, October 4th, 2022
Indices: Russell 2000 +3.91% | Nasdaq 100 +3.14% | S&P 500 +3.06% | Dow +2.80%
Sectors: All 11 sectors closed higher by more than +1.5%. Energy led by a wide margin, gaining +4.30%. Consumer Staples lagged but still rose +1.52%.
Commodities: Crude Oil futures moved higher by +3.46% to $86.52 per barrel. Gold futures rose +1.67% to $1,731 per ounce.
Currencies: The US Dollar Index had its worst day since March 2020, dropping -1.31%.
Crypto: Bitcoin rose +3.44% to $20,312. Ethereum gained +2.80% to $1,361.
Interest Rates: The US 10-year Treasury yield fell to 3.627%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Bear trap island?
— David Zarling, CMT (@AdaptivCharts) October 4, 2022
Today’s Chart of the Day was shared by David Zarling (@AdaptivCharts). It’s a 1-hour candlestick chart of the S&P 500 year-to-date. David points out that the S&P 500 has stranded the bears on a deserted island. We’re talking about a bullish island reversal pattern. This pattern is formed with two gaps that leave a cluster, or island, of isolated price action. In this case, price gapped lower on Sept. 22nd and chopped around for the next six days before gapping higher this morning. You could also call this a false breakdown, given that we’ve reclaimed the June lows. Call it whatever you want…an island reversal, false breakdown, bear trap, whatever! The point is, the S&P 500 is set up for a countertrend rally in the near term. Don’t let the silly names fool you, there is a lot of market psychology behind these chart patterns.
Quote of the Day
“It is not good to be too curious about all the reasons behind price movements.”
– Jesse Livermore
Was that the Bottom? – The Irrelevant Investor
Michael Batnick takes a look at prior instances where the S&P 500 gained 5% or more in two days like we’ve seen this week.
Historically This is One of the Greatest Buying Opportunities – BNN Bloomberg
JC Parets explains why he thinks this is a buying opportunity for Stocks.
Third Quarter Recap – Means to a Trend
Austin Harrison highlights some key takeaways from Q3.
Gold & Silver – From Failed Moves Come Fast Moves – PFT Trading
Greg Rieben takes a look at the false breakdown in Precious Metals.
You Weren’t Supposed to See That – The Reformed Broker
Here’s a good read from Josh Brown on US Economy and how we got to this point.
— Bloomberg (@business) October 4, 2022
A screaming red headline on BB
*S&P 500 CLOSES UP 3% FOR BIGGEST TWO-DAY RISE SINCE APRIL 2020
This is the fourth time this year it has been true.
The first three were better sells than buys (bear mkt).
The two in 2020 were better buys than sells (bull mkt).
Which is this? pic.twitter.com/DK7ZtvJvo8
— Jim Bianco biancoresearch.eth (@biancoresearch) October 4, 2022
Here are all instances of $SPY gaining 5% or more over 2 days while also finishing with negative trailing 10 and 20 day returns.
Some crazy dates in here. pic.twitter.com/S5K8hYYLaH
— Steve Deppe, CMT (@SJD10304) October 4, 2022
If it holds, today could be the first back-to-back +2.5% days in %SPX since Dec 2008… pic.twitter.com/W4mgRKXP0Q
— Optuma (@Optuma) October 4, 2022
All times since 1960 when S&P 500 had two consecutive 2.5%-plus days & subsequent 1 w, 1m, 3m & 6m performance pic.twitter.com/jTkKhZqwEr
— Liz Ann Sonders (@LizAnnSonders) October 4, 2022
From failed moves come FAST moves.
— Shane C. Murphy (@murphycharts) October 4, 2022
"False breakdown" out of the Russell?
— Mike Singleton, CFA (@InvictusMacro) October 4, 2022
You know what they say about failed moves… pic.twitter.com/PrlLQOEKij
— Austin Harrison, CFA, CMT (@meanstoatrend) October 4, 2022
— Jay Kaeppel (@jaykaeppel) October 4, 2022
European Financials +8% last 2 days $EUFN
We need more weekend euro banking crises pic.twitter.com/Pf21PtiytU
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 4, 2022
What happened to dollar? pic.twitter.com/8qdZsjDnau
— Fomocap (@fomocapdao) October 4, 2022
oh the irony pic.twitter.com/DN1GyENXCC
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) October 4, 2022
You’re all caught up now. Thanks for reading!