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Today’s Summary
Monday, January 10th, 2022
Indices: Dow -0.45% | S&P 500 -0.14% | Nasdaq +0.05% | Russell 2000 -0.40%
Sectors: 2 of the 11 sectors closed higher. Health Care led, gaining 1.03%. Industrials lagged, falling 1.13%.
Commodities: Crude Oil futures fell 0.85% to $78.23 per barrel. Gold futures inched higher by 0.08% to $1,799 per ounce.
Currencies: The US Dollar Index rose 0.22%.
Interest Rates: The US 10-year Treasury yield snapped a six-day winning streak, falling to 1.755%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$ARKK Weekly. Logical place for a short-term bounce within a downtrend. pic.twitter.com/CF1j05chS1
— Brian G (@alphacharts) January 10, 2022
Today’s Chart of the Day was shared by Brian G (@alphacharts). It’s a weekly bar chart of the ARK innovation ETF, $ARKK, over the past two years. The top holdings in this ETF include $TSLA, $ZM, $TDOC, $ROKU, and $COIN. In a lot of ways, $ARKK is the poster child for the growth/tech trade. As you might know, it surged nearly 350% in less than a year coming out of the pandemic. However, it’s currently in its worst drawdown since inception, down more than 45% from its highs. As ugly as it has been, Brian points out that $ARKK is currently testing a key Fibonacci level around $81, which represents the 61.8% retracement of the entire post-pandemic rally. The trend is still lower on both an absolute and relative basis, but this would be a logical level for $ARKK to stop going down in the near term. Not to mention, sentiment is getting extremely negative with short-interest near all-time highs.
Quote of the Day
“Great investors are not unemotional, but are inversely emotional –
they get worried when the market is up and feel good when everyone is worried.”
– Bill Miller
Top Links
10 Charts I’ll Be Watching in 2022 – Means to a Trend
Austin Harrison highlights some of the most important charts going into the new year.
Epic Breakout in These Stocks – All Star Charts
JC Parets weighs in on some of the bullish developments from last week.
Is NYSE Index Trading at Major Inflection Point? – Kimble Charting Solutions
Chris Kimble points out that the NYSE Index is testing a long-term resistance level.
Levels – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most important technical developments across the markets.
Travel Abroad in 2022? – Potomac Fund Management
Dan Russo shares some key takeaways from the current market environment.
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Top Tweets
The Nasdaq finally ended what looked like a 5-day cascading decline to finish slightly positive. New lows easily outpaced highs and continued the trend of net new lows. Despite the snapback, few stocks look healthy outside oil & banks. $OVV $DVN $FANG $LPLA Market is unhealthy pic.twitter.com/cVGu9H1q8I
— Matt Caruso, CFA, CMT (@Trader_mcaruso) January 10, 2022
Woah… an impressive hold today. $NDX pic.twitter.com/mNiglDcqEb
— World Famous Nature Boy (@Xiphos_Trading) January 10, 2022
Today felt great for the Bulls, right?
Well, let this be a reminder that feelings have absolutely no place in the decision to press buy or sell.
We've seen this OHLC 16 times since 1990 (-2% daily drawdown, close between -0.50%-0.
Here is the S&P 500's next month. pic.twitter.com/Yf32gEZve4
— Steve Deppe, CMT (@SJD10304) January 10, 2022
built different pic.twitter.com/yml7Bkrv9Y
— J.C. Parets (@allstarcharts) January 10, 2022
While $SPX was making higher highs, FANNGAMT was doing lower highs and lower lows. The Generals have been retreating. pic.twitter.com/rffoJDaJSL
— Jim Carroll (@vixologist) January 10, 2022
If stocks are going to repeat last year's performance, we'll probably need to see breadth improve $SPX pic.twitter.com/pbwwS8OUto
— Austin Harrison, CFA, CMT (@meanstoatrend) January 10, 2022
Equally-weighted discretionary vs. EW staples and the Russell 2000 are the same chart. And after getting rejected at the underside of their respective 200-day moving averages, both look like they want to break support pic.twitter.com/bLEYC6QjXx
— Scott Brown, CMT (@scottcharts) January 10, 2022
$VIX #VIX – 45 day cycle – trough 1/7 … anticipated peak 2/9/22. pic.twitter.com/2M4dMfXefj
— Nautilus Research (@NautilusCap) January 10, 2022
short interest on $ARKK is close to an all-time highhttps://t.co/IhSMLx1XDG via @markets @SamJPotter pic.twitter.com/7bR4VN7ERR
— Katie Greifeld (@kgreifeld) January 10, 2022
Bitcoin still trying to hang on to support.#BTC #Crypto pic.twitter.com/DoQNDwVwl3
— Andrew Thrasher, CMT (@AndrewThrasher) January 10, 2022
$BTC #Bitcoin Got the flush today.
Thinking a sharp move up to the $46k-$47.5k over the next few days would throw a few people off. pic.twitter.com/8JpQQl70aG
— Jake Wujastyk (@Jake__Wujastyk) January 10, 2022
The CDC recommends going to cash.
— Eddy Elfenbein (@EddyElfenbein) January 10, 2022
You’re all caught up now. Thanks for reading!