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Today’s Summary
Wednesday, January 19th, 2022
Indices: Dow -0.96% | S&P 500 -0.97% | Nasdaq -1.15% | Russell 2000 -1.60%
Sectors: 2 of the 11 sectors closed higher. Consumer Staples led, gaining 0.63%. Consumer Discretionary lagged, dropping 1.80%.
Commodities: Crude Oil futures rose 1.14% to a seven-year high of $85.80 per barrel. Gold futures jumped 1.70% to a two-month high of $1,843 per ounce.
Currencies: The US Dollar Index slipped 0.11%.
Interest Rates: The US 10-year Treasury yield fell to 1.866%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by John Roque of 22V Research. It’s a monthly chart of Gold over the past two decades. Gold struggled in 2021 while just about every other Commodity rallied. However, it’s off to a great start so far this year, settling at a 2-month high today of $1,843 per/oz. John’s view is that Gold was actually the first to tip-off the bull cycle in Commodities when it broke out back in Summer 2020. It fell asleep last year, but it’s waking up once again and looks poised to continue working higher. John explained “Not only is Gold now showing some chutzpah on an absolute basis, but it is on a 3-month winning streak relative to Bitcoin and at a 7-month high versus NASDAQ. Gold is above its upward-sloping 50-, 100-, and 200-day moving averages and, since it is only rubbing the sleep out of its eyes, is not remotely close to being overbought on our daily or weekly momentum work.”
Quote of the Day
Top Links
Negative Bets on the Energy Rally are Reversing – SentimenTrader
Jason Goepfert explains that options activity is suggesting further upside for the Energy sector over th next couple of months.
Financials are All Over the Place – StockCharts.com
Julius de Kempenaer examines the strongest/weakest areas of the Financial sector.
Fairlead’s Stockton Sees Signs of ‘Downside Exhastion’ For Russell 2000 – Bloomberg
Katie Stockton shares her outlook on the major indices and Treasury yields.
Stock Market Analysis January 19th, 2022 – AlphaTrends
Brian Shannon lays out some key levels to focus on in the remainder of the week.
Gold Miners Win Whenever They’re Down Here – All Star Charts
JC Parets takes a look at Gold Miners and the US Dollar Index.
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Top Tweets
https://twitter.com/SPYJared/status/1483938116079607810
For me, level needs to hold $NASDAQ. It's a tough look for the market $SPY $SPX $QQQ if we resolve lower.
Hopefully buyers step in now that we've corrected.
I put some key charts out this AM. https://t.co/WLXNiDlJ6m pic.twitter.com/3XLcygbaFc
— Sam McCallum ??????? (@honeystocks1) January 19, 2022
Since stocks reclaimed the 100 day moving average post March 2020 lows, there have been 3 episodes of the S&P 500 closing below 100dma. None of those episodes lasted longer than 5 days. 100dma area has been a huge support level. Will be interesting to see if this time is diff. pic.twitter.com/3Caw54FNkM
— Jon Turek (@jturek18) January 19, 2022
Next stop the 200-dma? It would take a really thick pencil to say today's failed rally hasn't taken out the uptrend line from 2021. pic.twitter.com/HPfav9fNuN
— Scott Brown, CMT (@scottcharts) January 19, 2022
The S&P 500 ETF has not closed below its 200-day moving average since May 2020. This is now the 4th longest streak since its inception in 1993. 200-day is about 4% below current levels. $SPY pic.twitter.com/7WyOYLi7o8
— Charlie Bilello (@charliebilello) January 19, 2022
1-year performance for Russell 2000 has gone negative which is pretty wild when large caps are up over 20%.
Not all stocks are created equal! pic.twitter.com/tICiVyzYxH
— Andrew Thrasher, CMT (@AndrewThrasher) January 19, 2022
One head fake aside, small-caps just spent a year going sideways and are now breaking down. $IWM pic.twitter.com/U4koSjvXau
— Willie Delwiche, CMT, CFA (@WillieDelwiche) January 19, 2022
This is S&P Small Cap 600 vs R2K. R2K let in all the garbage IPOs, meme stocks and SPACs. S&P has a simple screening process that keeps that stuff out pic.twitter.com/E4ql9AeieE
— Tsachy Mishal (@CapitalObserver) January 19, 2022
Since September 1st 2020, $XLK has neither outperformed or underperformed the $SPY
Hard to believe with the recent action in tech pic.twitter.com/yomNQlBV8e
— Tyler Lovingood (@Tyler_Lovingood) January 19, 2022
The divergence between Value and Growth has accelerated in 2022–Pure Value factor up 4.5% YTD, while Pure Growth is down 2.2%. But this is really just a continuation of what started when the Fed retired "transitory" back in Nov. pic.twitter.com/T7pwch11BS
— Liz Young (@LizYoungStrat) January 19, 2022
If the breakout by 10-year UST #yields > 1.79% is confirmed (we like to see two Fridays above), it'd be a big deal, targeting 2.13% initially
Guessing those not on board with rising yields probably will be once psychological hurdle of 2.00% is cleared #fairleadstrategies pic.twitter.com/JTUhnC20pj
— Katie Stockton, CMT (@StocktonKatie) January 19, 2022
I turned bullish on the US vs the World (ex-US) when Superman rescinded his US citizenship back in April 2011 (ultimate sentiment call) and remain in that camp. However, I pay close attention whenever the relative performance dips below the 50 day (see inset in chart below). pic.twitter.com/S2Sgfb8jwo
— David Lundgren, CMT CFA (@dlundgren3333) January 19, 2022
*Gold and Silver Miners Soar as Commodities Rise, Dollar Drops$NEM $GOLD $AG $SILV $SAND $RGLDhttps://t.co/bcOTe0YB5l pic.twitter.com/qmDROiZqbx
— Jared Blikre (@SPYJared) January 19, 2022
Every time Gold Miners get down here, they start to outperform. Is it different this time? Or just like the others? $GDX pic.twitter.com/0bC7D8OpZO
— J.C. Parets (@allstarcharts) January 19, 2022
I know it's hard to believe but #silver is following through…$SLV $SIL pic.twitter.com/mD7E4twpu7
— Greg Rieben (@gregrieben) January 19, 2022
Confirmation of the emerging bull market in precious metals all over the place today $SI_F $SLV $GC_F $GDX $PL_F pic.twitter.com/ztjKl6KDPH
— Peter Brandt (@PeterLBrandt) January 19, 2022
Anyone else surprised that BuzzFeed went public and collapsed and seemingly absolutely no one noticed? $BZFD pic.twitter.com/0NAVcC9Zyc
— Ian Bezek (@irbezek) January 19, 2022
You’re all caught up now. Thanks for reading!