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Today’s Summary
Tuesday, January 24th, 2023
Indices: Dow +0.31% | S&P 500 -0.07% | Nasdaq 100 -0.22% | Russell 2000 -0.27%
Sectors: 6 of the 11 sectors closed higher. Industrials led, gaining +0.66%. Health Care lagged, falling -0.66%.
Commodities: Crude Oil futures fell -1.83% to $80.13 per barrel. Gold futures rose +0.35% to a 9-month high of $1,935 per ounce.
Currencies: The US Dollar Index inched lower by -0.09% to a 7-month low of $101.92.
Crypto: Bitcoin fell -1.44% to $22,604. Ethereum dropped -4.75% to $1,550.
Interest Rates: The US 10-year Treasury yield fell to 3.455%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPX not far from a potential bullish 50/200-sma cross, turned down in March. Earnings could be a catalyst. $SPX needs a close > 4100 to break out of this range. pic.twitter.com/hfFIYccw4C
— Larry Tentarelli, Blue Chip Daily (@LMT978) January 24, 2023
Today’s Chart of the Day was shared by Larry Tentarelli (@LMT978). Get ready to hear the term ‘Golden Cross’ all over the financial media pretty soon. As Larry points out, it’s just a matter of days before the 50-day moving average (red) crosses above the 200-day moving average (green). The last time the S&P 500 flashed this signal was in July 2020, and it was followed by a 32% gain until the Death Cross in March 2022. The Dow already registered a Golden Cross back in December, and the Russell 2000 will likely do so tomorrow. The Golden Cross is probably the most well-known technical signal out there. So much so, that many technicians argue that it’s no longer useful in today’s markets. We prefer to use the Golden Cross as trend confirmation, rather than as a trading signal. It’s not the best timing tool, but we can all agree that this is not a bearish development.
Quote of the Day
“Have an opinion on what the market should do
but don’t decide what the market will do.”
– Bernard Baruch
Top Links
The Bullish Trifecta – All Star Charts
JC Parets points out that the S&P 500 has never finished the year lower when the Santa Claus Rally, First Five Days, and January Barometer are all positive
Can Gold Continue to Shine? – LPL Financial Research
Adam Turnquist takes a look at what could be next for Gold.
Two Highly Entertaining Stocks to Watch – StockCharts
Julius de Kempenaer highlights two stocks in the Communications sector that are showing relative strength – $DIS & $WBD.
Value vs Growth: Is a Decade of Value Leadership Coming? – John Rothe
John Rothe examines the outlook for Growth vs. Value.
What Charts are You Watching? – The Chart Report
Here’s a recording of the Twitter Space we hosted today with Steve Strazza and Sean McLaughlin. We discuss the glitch in the NYSE that occurred this morning, Semiconductor Stocks, Bitcoin, and more.
Top Tweets
The S&P 500 is up 4.7% YTD, likely suggesting stocks will be green in Jan.
This is a good sign, as when stocks are down the previous yr, but up during the Santa Claus rally, first 5 days, and January ===> good things tend to happen.
Never lower for the year and up 27.1% on avg. pic.twitter.com/jpo0vDFen1
— Ryan Detrick, CMT (@RyanDetrick) January 24, 2023
$SPY It's now or never for bears and bulls right here right now… pic.twitter.com/scUQLLB4IG
— Heisenberg (@Mr_Derivatives) January 24, 2023
$SPX essentially flat and vol getting SMOKED pic.twitter.com/oZrxPuRnNv
— Jim Carroll (@vixologist) January 24, 2023
Impressive breakout for $SPX this week if (that's IF) we get a follow-through day after Monday's close. Not yet….. pic.twitter.com/gOHbpDjVGn
— David Keller, CMT (@DKellerCMT) January 24, 2023
— Arun S. Chopra CFA CMT? (@FusionptCapital) January 24, 2023
$SPX You can quibble about where you draw the DTL & how long we need to stay above the 200d MA for confirmation of the rally. But there is no quibbling about Adv-Decl Volume or where the Big Guys are placing their bets. Peeps are going to have to put up or shut up pretty soon. pic.twitter.com/HVtBIyrbfC
— Alan Cohen (@al_xdpg) January 24, 2023
Big level for the Russell 2000 as it bumps up against those November highs, plus the March 2020 COVID Low AVWAP
$IWM pic.twitter.com/vx8wrTrzHm— Matthew Timpane, CMT (@mtimpane) January 24, 2023
Still no OS reading from $DXY… pic.twitter.com/NSxLNOakYV
— Ian McMillan, CMT (@the_chart_life) January 24, 2023
Since Mar 2022, the relationship between gold (yellow) & USD (blue) has been tight. Gold's 2022 bottom coincided with the dollar peak in late Sep–since then, gold is up 19% & the dollar is down over 10%. pic.twitter.com/tzzPuXuQ2T
— Liz Young (@LizYoungStrat) January 24, 2023
Historically, this is about as expensive as Orange Juice ever gets pic.twitter.com/6aTQUALcl0
— Austin Harrison, CFA, CMT (@meanstoatrend) January 24, 2023
I don’t trade orange juice (does anyone?). But if I did, this is one type of price/seasonality setup that would catch my eye (price about as high as it ever gets, and potential seasonal weakness) as a possible shorting opportunity. #sentimentrader pic.twitter.com/1UeA1h2hYb
— Jay Kaeppel (@jaykaeppel) January 24, 2023
Today's NYSE glitch saw some major price spikes, with $T & $NCLH having a daily high/low range > 33%. $SPX list: pic.twitter.com/p8itrWvXpG
— Optuma (@Optuma) January 24, 2023
You’re all caught up now. Thanks for reading!