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Today’s Summary
Friday, February 4th, 2022
Indices: Dow -0.06% | S&P 500 +0.52% | Nasdaq +1.58% | Russell 2000 +0.57%
Sectors: 5 of the 11 closed lower. Consumer Discretionary led, gaining 2.84%. Materials lagged, falling 1.66%.
Commodities: Crude Oil futures rose 2.26% to a seven-year high of $92.31 per barrel. Gold gained 0.21% to $1,808 per ounce.
Currencies: The US Dollar Index rose 0.13%.
Interest Rates: The US 10-year Treasury yield rose to its highest level since December 2019 at 1.912%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
10 Yr Yield breaking out pic.twitter.com/kiNZ8JtxuR
— Matt Petrallia (@theEquilibrium) February 4, 2022
Today’s Chart of the Day was shared by Matt Petrallia (@theEquilibrium). It’s a chart of the US 10-year Treasury yield over the past year. The 10-year yield just broke out to its highest level since December 2019 at 1.912%. It spent the past three weeks consolidating above last year’s highs, but we resolved higher out of that consolidation today. At this point, we could see it test the 2% level as early as next week. We’re also seeing international yields breaking out to multi-year highs, which confirms the uptrend in US rates. This continues to be one of the more important charts to watch, as it’s been driving a lot of the rotation out of Growth stocks and into Value. If yields continue higher, we’ll likely see that rotation continue.
Quote of the Day
“Trading isn’t simple enough to be boiled down to a punchy quote.”
– Andreas Clenow
Top Links
Surely That Isn’t a Tech Chart | 5 Charts – LPL Financial Research
In this video, Ryan Detrick and Scott Brown highlight five noteworthy charts. c
February Seasonal Pattern: Sluggish Start, Mid-Month Strength, & Weakness into End – Almanac Trader
Seasonality expert, Jeff Hirsch breaks down how stocks have historically performed in February.
Get ‘Em While They’re Hot! – All Star Charts
Ian Cully takes a look at the strongest trends within Commodities.
Reduce Whipsaws and Improve Performance with a Simple Filter – StockCharts.com
Art Hill offers a simple strategy for reducing whipsaws around key levels.
Midweek Update – The Chart Report
In case you missed it, here’s a conversation I had with Steve Strazza yesterday, in which we discussed Energy Stocks, Interest Rates, and more.
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Top Tweets
Up week. $SPY $QQQ $IWM $EFA $EEM pic.twitter.com/MX2QpyXURv
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 4, 2022
Weekly $SPX update: a constructive bounce from the 40wk EMA and support near the Sep/Oct pullback. Not out of the woods yet as Nasdaq, Russell indexes lag below 40wk EMAs. $COMP $NDX $RAG $RUT pic.twitter.com/KtLFX9It32
— Michael Turvey (@MikeTurvey_TDA) February 4, 2022
Slight bounce back in @AAIISentiment bull-bear spread but sentiment remains pretty sour (bearish) relative to long term pic.twitter.com/0tbvLwrq2O
— Liz Ann Sonders (@LizAnnSonders) February 4, 2022
The 109 level is the line in the sand on the Equal Weight Nasdaq 100 $QQEW pic.twitter.com/yiQNY6RUV2
— Alfonso Depablos (@AlfCharts) February 4, 2022
Meta was already the smallest of the top 5 (MAGMA) stocks in S&P 500. Now it’s #8. Tesla is #5. pic.twitter.com/feorNx1YGV
— Gina Martin Adams (@GinaMartinAdams) February 4, 2022
It's a Large Cap world out there $RSP $SPY $IJH $IJR pic.twitter.com/JyvoJNy1MU
— Drew Wells, CMT, CIMA® (@DrewTheCharts) February 4, 2022
Yields on 10-year Treasuries have climbed to the highest since January 2020. pic.twitter.com/0wfm4CaiBC
— Lisa Abramowicz (@lisaabramowicz1) February 4, 2022
Everyone is looking at the 10-year. Here is the 30-year with a breakout. $TNX $TYX pic.twitter.com/PYQbvEs938
— Michael Kahn, CMT (@mnkahn) February 4, 2022
There's an old adage about stocks that get to $90 almost always make it to $100.
Wondering if that works for commodities as well? pic.twitter.com/0pZ4MRndTA
— Willie Delwiche, CMT, CFA (@WillieDelwiche) February 4, 2022
Here's a good one, this happens often in election based asset allocation predictions. $XLE $PBW pic.twitter.com/JywpEzQyia
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 4, 2022
are we gonna see something serious this weekend? or is #bitcoin gonna remain stuck below 41? I don't see anything to talk about from the long side unless we're above that key level. A ton of market memory there… pic.twitter.com/CdVWzlDuiO
— J.C. Parets (@allstarcharts) February 4, 2022
You’re all caught up now. Thanks for reading!