Sponsored By:
Today’s Summary
Monday, February 6th, 2023
Indices: Dow -0.10% | S&P 500 -0.61% | Nasdaq 100 -0.87% | Russell 2000 -1.40%
Sectors: 2 of the 11 sectors closed higher. Utilities led rising +0.85%. Tech lagged falling -1.22%.
Commodities: Crude Oil futures rose +0.98% to $74.11 per barrel. Gold futures inched higher by +0.15% to $1,880 per ounce.
Currencies: The US Dollar Index rose +0.62% to $103.63.
Crypto: Bitcoin fell -1.09% to $22,686. Ethereum fell -1.07% to $1,612.
Interest Rates: The US 10-year Treasury yield rose to 3.644%.
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 by Brian Joyce (@Nasdaqbjoyce). The US Dollar index kicked off the week on a strong note after hitting a nine-month low on Thursday. It’s back above that crucial $103 level, which increases the likelihood of a failed breakdown. As we know, failed breakdowns often lead to sharp moves higher. The index remains below a flattening 40-week moving average, but it’s ripe for some mean reversion considering it just had its worst quarter in more than a decade. Dollar strength is one of the biggest potential threats to the recent rally in Stocks and other risk assets. Expect further pressure on Stocks, Gold, and Crypto if the Dollar continues to rebound in the near term.
Quote of the Day
“Stress comes from ignoring the things that you shouldn’t be ignoring.”
– Jeff Bezos
Top Links
FANG Index Has Best One-Month Rally on Record – Bespoke
Bespoke points out the NYSE FANG+ Index just posted its best month-over-month gain since inception.
February is Like a Bad Hangover – All Star Charts
JC Parets points out that February hasn’t been a strong month for Stocks over the past 70 years.
Out of the Woods – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some of the most noteworthy technical developments across the markets.
Precious Metals Have a Problem – Grindstone Intelligence
Austin Harrison takes a look at potential weaknesses in Precious Metals.
Trendlines over Headlines – An Update on Seasonality with Jeff Hirsch – The Chart Report
In the latest episode of Trendlines > Headlines, Jeff Hirsch, Editor of The Stock Traders Almanac returns to the show to break down February seasonality, the January Trifecta, and more! Podcast version here .
Sponsored:
Top Tweets
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/MTSUj6pbdy
— StockMKTNewz – Evan (@StockMKTNewz) February 6, 2023
Can't be anymore text book than this. Broke above the 408 resistance, retested it earlier this morning and is now hovering right above it.
Either we get a huge leg up here, or we slice right through and get to 400.
Big move incoming. pic.twitter.com/dVq45TedQV
— Heisenberg (@Mr_Derivatives) February 6, 2023
$SPY testing the ATH AVWAP it broke last week from above. pic.twitter.com/969qudxUyN
— Michael Nauss, CMT, CAIA ?? (@MichaelNaussCMT) February 6, 2023
A golden cross. There've been 13 crosses since 1991 with 12 winners. Win rate is 92%. It doesn't mean, however, that SPX will go straight up from here. In several cases (e.g., 2019), the price dropped 4%-5% but then eventually went up again.
So, will it be 14:1 or 13:2? pic.twitter.com/yYCe4R9Lhc
— Yuriy Matso (@yuriymatso) February 5, 2023
New 52-week highs continue to improve.
This isn't a bad thing and suggests potential continued strength. pic.twitter.com/pPHXJZ5At8
— Ryan Detrick, CMT (@RyanDetrick) February 6, 2023
Last week’s market explained: As the shorts capitulated from junk stocks that led the last cycle, it produced a massive thrust signal (purple bars). Maybe it’s a legit breadth thrust that will slay the bears, or just a final counter-cyclical thrust, as happened last summer. pic.twitter.com/luaQZCDXvA
— Jurrien Timmer (@TimmerFidelity) February 6, 2023
Analysts continue to turn bullish … 30-day moving average of number of S&P 500 members with higher analyst target prices has climbed to highest since August 2021 pic.twitter.com/9b8JTiuAZA
— Liz Ann Sonders (@LizAnnSonders) February 6, 2023
Yo, Charts – this is the monthly chart for the S&P Energy Sector (substitute XLE). What’re you doing with it? pic.twitter.com/1gXAbEYMl7
— da Chart Life (@daChartLife) February 6, 2023
Just a lower high in copper?
Anyone buying the dip? pic.twitter.com/H3i04oV0rd
— Mike Singleton, CFA (@InvictusMacro) February 6, 2023
Dollar strength this month likely wouldn't be good for stocks pic.twitter.com/g4NoIfn4DV
— J.C. Parets (@allstarcharts) February 6, 2023
Nothing to see here, please move along $BBBY pic.twitter.com/wvyYYR7ZpZ
— Commonstock (@JoinCommonstock) February 6, 2023
Amazing. pic.twitter.com/CgEHWDJlx7
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 5, 2023