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Today’s Summary
Wednesday, January 11th, 2023
Indices: Nasdaq 100 +1.76% | S&P 500 +1.28% | Russell 2000 +1.17% | Dow +0.80%
Sectors: 10 of the 11 Sectors closed higher. Real Estate led, gaining +3.63%. Consumer Staples lagged but still managed to close higher by +0.05%.
Commodities: Crude Oil futures rose +3.05% to $77.41 per barrel. Gold futures inched up +0.13% to an eight-month high of $1,879 per ounce.
Currencies: The US Dollar Index was flat and continues to trade around $103.26.
Crypto: Bitcoin rose +2.41% to $17,872. Ethereum gained +3.73% to a two-month high of $1,385.
Interest Rates: The US 10-year Treasury yield fell to 3.545%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Encouraging action in one of my favorite breadth indicators, the percent of $SPX stocks above key moving averages. Both remained above the important 50% level, suggesting stocks broadly speaking are in a bullish phase. Food for thought! pic.twitter.com/goPEYwRZzp
— David Keller, CMT (@DKellerCMT) January 11, 2023
Today’s Chart of the Day was shared by David Keller (@DKellerCMT). The S&P 500 reclaimed its 50-day moving average yesterday, and it’s less than 1% below its 200-day moving average. David points out that the index is stronger internally than it is on the surface. As of today’s close, more than 76% of stocks within the S&P 500 are above their 50-day moving averages, and more than 65% of stocks are above their 200-day moving averages. David adds that readings above 50% are generally associated with bullish phases for the S&P 500.
Quote of the Day
“Better or worse matters
more than good or bad.”
– Liz Ann Sonders
Top Links
Mid-week Market Update January 11, 2023 – Trading Adventures
Andrew Moss takes a look at the major indices heading into tomorrow’s CPI report.
President Biden’s Third Year Bodes Well for Stocks – Schaeffer’s Investment Research
Rocky White examines how stocks have historically performed in the third year of the presidential cycle.
Industrials Continue to Lead Stocks Higher – All Star Charts
JC Parets looks at the strength in Industrials stocks and what it could mean for the broader market.
ETF Flow Data Key Takeaways – Strategas Asset Management
In this quick video, Todd Sohn shares some insights from recent ETF flows.
Top Tweets
Daily Mkt Mood: Risk-On/Mixed
1. Stocks gain
2. Volume okay
2. Techs rally for fourth day
3. Airlines up 15% in 2023
4. But… bonds gain too todayCPI and earnings ahead, doesn’t feel too binary right now, bulls seem to be gaining control.
— Abigail Doolittle (@TheChartress) January 11, 2023
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/4qE6ccJcWB
— StockMKTNewz – Evan (@StockMKTNewz) January 11, 2023
The S&P 500 rose 1.28% today and closed less than 0.5% below the 200-day MA. Investors are focused on tomorrow’s #CPI report with hopes that inflation will continue to ease from elevated levels. The recent move higher for #stocks will be tested tomorrow. pic.twitter.com/lCOjKdYr8v
— Cetera Investment Management (@ceteraIM) January 11, 2023
#CPI releases led to some volatile action in 2022. Below is an updated look at ranges and % returns for $SPX on recent CPI releases. Note the daily range has been 86% larger than a typical day over same period. $SPY pic.twitter.com/d3abaAW1il
— Quantifiable Edges (@QuantifiablEdgs) January 11, 2023
This is one to watch.
If the previous year is negative, but the S&P 500 gains during the Santa Claus Rally, first 5 days, and January ==> very good things could be coming.
The full year has never been lower and never gained less than double digits. Up 27.1% on average. pic.twitter.com/g0LPnswAcF
— Ryan Detrick, CMT (@RyanDetrick) January 11, 2023
What makes you think this time is different? pic.twitter.com/wJSfaDWdvJ
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) January 11, 2023
don't look now, but the Nasdaq Composite with 32.9% of stocks > 200-day average, which is the highest since 2021… #MarketBreadth pic.twitter.com/Xa3rctiBNd
— David Cox, CMT, CFA (@DavidCoxRJ) January 11, 2023
Transports, Semi's and Banks all testing their respective 200 day moving averages into CPI. Fun stuff $XTN $SOX $BKX pic.twitter.com/VTdqLvdfxW
— ATMcharts (@ATMcharts) January 11, 2023
CPI print tomorrow. What could go wrong? $ARKK pic.twitter.com/5NLOc1Lzza
— Brandon (@tradebettor) January 11, 2023
It's risk-on:
• Breakdown in US dollar index $UUP
• Breakdowns in $XLV $XLP (defensives) vs. $SPX
• Bullish divergences between $SPX and $EEM & $HYG / $IEI (credit "spread") pic.twitter.com/W9t3nwrA4H— Brian G (@alphacharts) January 11, 2023
Gundlach: The trendline of U.S. stocks as a world beater has been broken. pic.twitter.com/WMgM3IDPfy
— DoubleLine Capital (@DLineCap) January 11, 2023
Copper above 4 for the first time since June and back inside the range that persisted from early '21 to mid '22. pic.twitter.com/AX3nR83cRN
— Willie Delwiche, CMT, CFA (@WillieDelwiche) January 11, 2023
Going bankrupt is good, actually pic.twitter.com/weRC1DpjYV
— Bucco Capital (@buccocapital) January 11, 2023
You’re all caught up now. Thanks for reading!