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Today’s Summary
Thursday, April 7th, 2022
Indices: S&P 500 +0.43% | Dow +0.25% | Nasdaq 100 +0.23% | Russell 2000 -0.35%
Sectors: 7 of the 11 sectors closed higher. Health Care led, rising +1.92%. Communications lagged, falling -0.87%.
Commodities: Crude Oil futures inched lower by -0.21% to $96.03 per barrel. Gold futures gained +0.76% to $1,938 per ounce.
Currencies: The US Dollar Index rose for the sixth consecutive day by +0.13% to its highest in nearly two years.
Crypto: Bitcoin gained +1.02% $43,663. Ethereum moved higher by +2.20% to $3,237.
Interest Rates: The US 10-year Treasury yield rose for the fifth straight day, to a three-year high of 2.660%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
https://twitter.com/RenMacLLC/status/1512145236209901571
Today’s Chart of the Day was shared by Renaissance Macro Research (@RenMacLLC). It’s a chart of the Health Care Sector ETF, $XLV, over the past 21 months. The five largest components in this sector include $UNH, $JNJ, $ABBV, $PFE, and $LLY. The Health Care sector broke out to an all-time high today for the first time since December. Health Care is a defensive sector, along with things like Utilities, Consumer Staples, and Energy. All four of these defensive sectors have been outperfoming recently, which as Renaissance points out, is emblematic of a late-cycle environment. Seeing Health Care and other defensive sectors leading like this doesn’t exactly paint a bullish picture for the broader market going forward. But regardless of what this means for the broader market, Health Care stocks are breaking out and look poised to continue higher.
Quote of the Day
“The market is always to be considered as having three movements, all going on at the same time. The first is the narrow movement from day to day. The second is the short swing, running from two weeks to a month or more; the third is the main movement, covering at least four years in its duration.”
– Charles Dow
Top Links
Bulls Head for the Hills Once Again – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Semiconductors (SMH) Market Leadership Facing Important Test! – SeeItMarket.com
Chris Kimble shows that Semiconductor stocks are at a make-or-break point.
This Other Yellow Metal is Hitting Decade Highs – PFT Trading
Greg Rieben takes a look at the strength in Uranium and Uranium stocks.
Leveraged Oil-Energy ETFs Up More Than 50% YTD – Nasdaq
Here’s a list of some leveraged oil-energy ETFs that are up more than 50% so far in 2022.
Questioning the Rally in Rates – All Star Charts
The team at All Star Charts points out that stocks are not confirming the rise in rates.
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Top Tweets
Daily Market Mood: Risk-On
Bullish reversal for stocks as bonds mainly continue to drop.
Oil and commodities up too is solid as $TRAN snaps 6-day losing streak.
Banks, however, oddly down for a 7th day ahead of earnings next week.
Next up: #TGIF!
— Abigail Doolittle (@TheChartress) April 7, 2022
$NDX $QQQ its not just the 50-day sma that makes this setup interesting, but also 1. the 38.2% Fib retracement of the 17% gain off the March lows, 2. the mid point of the "W" pattern, 3. todays "piercing line", 4. bullish div. (RSI bottomed in Jan.) …. your risk may vary. pic.twitter.com/HhjwQmPGRU
— brian.joyce.nasdaq (@Nasdaqbjoyce) April 7, 2022
Even after a sharp rally, Nasdaq 100 trends remain damaged. pic.twitter.com/WRGZWAkj8e
— Strategas (@StrategasRP) April 7, 2022
Yet another very bearish @AAIISentiment survey reported today.
2022 continues to run as the most glum year ever (data back to 1987) pic.twitter.com/0js21LqSzn
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) April 7, 2022
$SMH has an appropriate ticker. Many holders are acting out the symbol as Price < 10 ema < 23 < 65. All MAs in a downtrend. Selling volume still relatively high as distribution continues. pic.twitter.com/at6Bx6kkpU
— Jonathan Harrier, CMT (@jonathanharrier) April 7, 2022
Defensive leadership is not bullish.
Example 1: Utilities $XLU pic.twitter.com/O8L3hLzlGj— David Keller, CMT (@DKellerCMT) April 7, 2022
Risk off (XLU, XLP) gaining strength, risk on (IYT, SOXX) breaking down. pic.twitter.com/cHEuJzVwgv
— Willie Delwiche, CMT, CFA (@WillieDelwiche) April 7, 2022
left: high beta stocks
right: low volatility stockswe need to accept what the market says and not press, especially not in the wrong direction… pic.twitter.com/tZFWxNKcub
— David Cox, CMT, CFA (@DavidCoxWG) April 7, 2022
Oil coming into important level of potential support at the ⚓️VWAP from the last significant low
AVWAP Handoff$CL_F $USL #crudeoil pic.twitter.com/cUFw3IKDCl
— Brian Shannon, CMT (@alphatrends) April 7, 2022
Don't tell the maxis…but Bitcoin is acting a lot like the stock market these days.
(unpopular opinion: this isn't a bad thing!!!) pic.twitter.com/dit2qo3HxF
— Callie Cox (@callieabost) April 7, 2022
Blackrock's $TLT 20+ yr Treasury fund is down 24% from its highs, the biggest drawdown since the financial crisis pic.twitter.com/HcSDiPU8pt
— Dani Burger (@daniburgz) April 7, 2022
Channel support, anyone? $TLT pic.twitter.com/teQMSw56kv
— Mark Ungewitter (@mark_ungewitter) April 7, 2022
Does this chart matter?$TLT $TYX pic.twitter.com/X1GiZ2pE6Q
— Arun S. Chopra CFA CMT? (@FusionptCapital) April 7, 2022
You’re all caught up now. Thanks for reading!