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Today’s Summary
Friday, January 7th, 2022
Indices: Dow -0.01% | S&P 500 -0.41% | Nasdaq -0.96% | Russell 2000 -1.20%
Sectors: 5 of the 11 sectors closed higher. Energy led, gaining 1.37%. Consumer Discretionary lagged, falling 1.67%.
Commodities: Crude Oil futures fell 0.70% to $78.90 per barrel. Gold futures rose 0.46% to $1,797 per ounce.
Currencies: The US Dollar Index dropped 0.52%.
Interest Rates: The US 10-year Treasury yield continued higher for the sixth consecutive day to 1.764% – the highest in nearly two years.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$TNX 10 Year Yield making new highs after ~10 Months. pic.twitter.com/LRwHKLUGzg
— Pratyush Tulsian (@PrattyCharts) January 7, 2022
Today’s Chart of the Day was shared by Pratyush Tulsian (@PrattyCharts). We’re only one week into the new year, but the 10-year US Treasury yield has risen every single day so far in 2022. As Pratty points out, the 10-year yield broke out to its highest level in nearly two years today, after basing for the past 10-months. This was easily the most important development this week, as it has been a key driver of sector rotation in the stock market. Speculative growth areas of the market like Tech, Software, IPOs, and $ARKK have taken a beating. Meanwhile, boring old ‘boomer stocks’ are loving it! Value-oriented sectors like Energy and Financials are up big to start the year. Energy is already up more than 10% in these first five trading days of the year, while Tech is down more than 4%. This breakout in yields could be a good thing or a bad thing depending on how your portfolio is positioned. As pronounced as this rotation has already been, it could continue as the 10-year hits new highs.
Quote of the Day
“If at first you don’t succeed,
take the tax loss.”
– Kirk Kirkpatrick
Top Links
5… of the Same Charts? – LPL Financial Research
In this quick video, Ryan Detrick and Scott Brown highlight five noteworthy charts from this past week.
Stocks for Rising Rates – All Star Charts
JC Parets discusses which areas of the market are likely to benefit in a rising rate environment.
The Tides are Turning in the Growth vs. Value Theme – Potomac Fund Management
Dan Russo takes a look at several important ratio charts.
Here’s Why Value Stocks May Shine in 2022 – Kimble Charting Solutions
Chris Kimble explains why Value looks poised to outperform Growth in 2022.
Stock Market Analysis January 7th, 2022 – AlphaTrends
In this video, Brian Shannon analyzes this week’s price action and lays out some key levels to watch next week.
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Top Tweets
Weekly $SPX update: that was a wild first week, for rates especially. S&P drops less than 2%. pic.twitter.com/YDlklRbTrR
— Michael Turvey (@MikeTurvey_TDA) January 7, 2022
…and now back to the 50 pic.twitter.com/VwRrbajA5T
— Callum Thomas (@Callum_Thomas) January 7, 2022
$QQQ Rangebound but pushing the lower band and previous support levels pic.twitter.com/VXYFah69za
— Tyler Lovingood (@Tyler_Lovingood) January 7, 2022
Rough week for healthcare $XLV -4.5% pic.twitter.com/6ty62K9ANH
— Steven Strazza (@sstrazza) January 7, 2022
KBW bank index from having an incredibly strong week relative to NASDAQ 100; ranks among best showings going back two decades
[Past performance is no guarantee of future results] pic.twitter.com/M95bkJkIOA— Liz Ann Sonders (@LizAnnSonders) January 7, 2022
We have seen a big thrust from Banks the last few days on both an absolute and relative basis…$KBE $KRE pic.twitter.com/JtkQap69XE
— Ian McMillan, CMT (@the_chart_life) January 7, 2022
Regional banks versus ARKK from the beginning of the pandemic to today.
What a flippening. pic.twitter.com/6oulbea0dF
— Michael Batnick (@michaelbatnick) January 7, 2022
Recent IPO stocks continue to decline in relative and absolute terms. $IPO pic.twitter.com/K50IFmYB8E
— Andrew Thrasher, CMT (@AndrewThrasher) January 7, 2022
U.S. 10-year yields have risen to the highest levels in two years. pic.twitter.com/GuBkloyE4H
— Lisa Abramowicz (@lisaabramowicz1) January 7, 2022
Thinking this upside breakout is significant. (Weekly chart) pic.twitter.com/fPFfRSAwj9
— Walter Deemer (@WalterDeemer) January 7, 2022
The six month slope is about to go negative for bitcoin. Forward one and three month performance are much better when that slope is above the zero line. $BTC pic.twitter.com/uO67i6m4r5
— Dan Russo, CMT (@DanRusso_CMT) January 7, 2022
Patience…. too many thinking they can outright buy the dip and profit $BTC.X #BTC pic.twitter.com/vfu6z6RI9D
— Rolando Santos (@TKPTrader) January 7, 2022
#ETHUSD is now more oversold than it has been at any point since the COVID pandemic crash in March 2020, per the 14-day RSI. pic.twitter.com/PbwgDtAi4g
— Matt Weller CFA, CMT (@MWellerFX) January 7, 2022
Remember SPAC mania?
That was fun.
The SPAC ETF is at all-time lows. pic.twitter.com/ebkkDomYhH
— stef (@scheplick) January 7, 2022
You’re all caught up now. Thanks for reading!