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Today’s Summary
Tuesday, January 10th, 2023
Indices: Russell 2000 +1.49% | Nasdaq 100 +0.88% | S&P 500 +0.70% | Dow +0.56%
Sectors: 10 of the 11 Sectors closed higher. Communications led, gaining +1.51%. Consumer Staples was the only sector that closed lower, slipping just -0.13%.
Commodities: Crude Oil futures rose +0.66% to $75.12 per barrel. Gold futures were little changed (-0.07%) and continue to trade at $1,877 per ounce.
Currencies: The US Dollar Index inched higher by +0.10% to $103.27.
Crypto: Bitcoin rose +1.44% to $17,426. Ethereum gained +1.11% to $1,335.
Interest Rates: The US 10-year Treasury yield rose to 3.623%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
It's not a coincidence that charts for emerging markets and copper happen to look great at the same time. $EEM $VWO $HG_F $JJC $COPX pic.twitter.com/Z8jR6eriI6
— Brian G (@alphacharts) January 10, 2023
Today’s Chart of the Day was shared by Brian G (@alphacharts). The chart shows Copper Futures & Emerging Markets ($EEM) over the past 25 years. These two have been exhibiting relative strength so far in the new year. Copper closed at a six-month high today while Emerging Markets closed at a four-month high. Brian points out they have a history of moving together. One reason that this correlation exists is that both assets are heavily influenced by China’s economic health. China is the largest buyer of Copper and it’s also the largest country within Emerging Markets, representing more than 30% of $EEM. The recent weakness in the US Dollar has also helped propel these two higher. Both are perceived as risk-on assets, so you could also interpret this as a sign of risk appetite returning to markets.
Quote of the Day
“Trader: A crazy person that risks their own money for freedom, rather than exchanging their freedom for money”
– Anonymous
Top Links
Stocks Start 2023 Very Strong – All Star Charts
JC Parets shows that stocks are off to a solid start so far this year.
First Five Days Up, Our January Indicator Trifecta is Now 2-0 – Almanac Trader
Jeff Hirsch points out that the First Five Days indicator and the Santa Claus Rally were both positive this year.
It’s a Big Week for the Stock Market – CappThesis
Frank Cappelleri breaks down a weekly chart of the S&P 500 as it attempts to notch its first higher low in more than a year.
Buy Trends & Be Ready to Take Small Losses – TD Ameritrade Network
In this clip, Jerry Parker of Chesapeake Capital shares his perspective on some of the trends across the markets.
Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/cLh2NjEkQM
— StockMKTNewz – Evan (@StockMKTNewz) January 10, 2023
$SPY HoD finish pic.twitter.com/CISMgT9VPj
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) January 10, 2023
$NDX – up 3 days in a row for the first time since Election Day (Nov 8). Hasn't been up 4 in a row since Sept 12 pic.twitter.com/Df6sxPkWUR
— Urban Carmel (@ukarlewitz) January 10, 2023
Although U.S. equities took a breather yesterday, most U.S. industries have had good start to year: 56 of 68 S&P Composite 1500 industries are up YTD, with Airlines in lead, +11%, while Health Care Providers/Services is worst, -5%
@SPDJIndices pic.twitter.com/JOKeSdCACS— Liz Ann Sonders (@LizAnnSonders) January 10, 2023
Industrials historically high positive correlations with the overall market. Up and to the right $XLI pic.twitter.com/W7lsoaL4Ia
— J.C. Parets (@allstarcharts) January 10, 2023
More evidence that Industrials could/should be an outperformer here for the foreseeable future…$RGI $XLI pic.twitter.com/ySIhRrmaSU
— Ian McMillan, CMT (@the_chart_life) January 10, 2023
If the patterns of history hold, we are likely to see a bull market in bonds before we see a bull market in stocks.
Right now, it's persistent downtrends in bonds, stocks and commodities. pic.twitter.com/ttsHFpEIJQ
— Willie Delwiche, CMT, CFA (@WillieDelwiche) January 9, 2023
The chart that goes with my conversation with @FerroTV this AM on @BloombergTV. YC inversion itself doesn't signal the timing of a recession. Instead, the the re-steepening (bull, ST rates fall) that is the flashing warning sign that recession is imminent(note SPX bottoms after) pic.twitter.com/Emz5WyUfRv
— Cameron Dawson (@CameronDawson) January 10, 2023
Dr. Copper doesn't seem to be pricing in a global recession. $COPPER bottomed in July and has since rallied more than 30%. $FCX $SCCO pic.twitter.com/bbJqfHQw5F
— Justin Spittler (@JSpitTrades) January 10, 2023
Steal stock exhibiting relative stregth and starting the year of strong$SLX $SPY pic.twitter.com/rDKZCf9ZHm
— Matthew Timpane, CMT (@mtimpane) January 10, 2023
Don't look now, but META is up 50% off the lows pic.twitter.com/0mHsUIaUYg
— Jared Dillian (@dailydirtnap) January 10, 2023
Eggs now outperforming $BTC since the start of the pandemic. pic.twitter.com/Bs31FZsYp2
— Arun S. Chopra CFA CMT? (@FusionptCapital) January 10, 2023
You’re all caught up now. Thanks for reading!