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Today’s Summary
Friday, February 10th, 2023
Indices: Dow +0.50% | S&P 500 +0.22% | Russell 2000 +0.18% | Nasdaq 100 -0.62%
Sectors: 8 of the 11 sectors closed higher. Energy led, gaining +3.92%. Consumer Discretionary lagged, falling -1.17%.
Commodities: Crude Oil futures rose +2.13% to $79.72 per barrel. Gold futures fell -0.21% to $1,875 per ounce.
Currencies: The US Dollar Index rose +0.38% to $103.58.
Crypto: Bitcoin fell -0.97% to $21,590. Ethereum dropped -2.17% to $1,512.
Interest Rates: The US 10-year Treasury yield rose to a one-month high of 3.742%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$DJI tightening up here pic.twitter.com/9LltCOgywX
— David Rath (@DJwrath) February 10, 2023
Today’s Chart of the Day was shared by David Rath (@DJwrath). The Dow closed flat for the second week in a row. David points out that the price has been tightening into a narrow since the end of November, with rising support and falling resistance. This consolidation is starting to resemble a symmetrical triangle, or coil pattern, as it’s also called. Just like a coiled spring, the tighter price action gets, the more potential energy builds for a big pop! Pressure is building for a large move in either direction. Consolidations typically resolve in the direction of the prevailing trend, which in this case is higher, but when they don’t it’s a major red flag. Keep an eye on which direction the Dow resolves, as we get closer and closer to the apex of the pattern.
Quote of the Day
“Follow the trendlines, not the headlines.”
– Bill Clinton
Trendlines over Headlines
The Latest Episode of Trendlines over Headlines is out!
In this week’s episode, Brian Shannon returns to the show to discuss his newest book, Maximum Trading Gains with Anchored VWAP. We explore why the Anchored VWAP is such a robust indicator, and Brian outlines a few strategies to profit from it.
You can also listen to the podcast version here!
Top Links
Three Concerning Signs for Stocks – StockCharts.com
David Keller highlights three potentially bearish developments for stocks.
Don’t Fight the Fed says 3Fourteen’s Warren Pies – CNBC
In this clip, Warren Pies shares his technical & macro outlook on the market.
Seeing the Spin on Natural Gas – All Star Charts
Ian Culley takes a look at the sharp decline in Natural Gas.
Trends with Friends, Episode 2 – Howard Lindzon
Howard Lindzon, JC Parets, Phil Pearlman, and Riley Rosenberger discuss the state of the market, seasonality, and more.
Do Stocks Want the Eagles or Chiefs to Win? – Carson Group
With the Super Bowl this weekend, Ryan Detrick takes a look at how the S&P 500 has performed after different Super Bowl outcomes…try not to take this one too seriously!
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Top Tweets
Wkly Mkt Mood: Risk-Off/Mixed
1. Stocks down ~2%+ most in 2023
2. Tech underperforms
3. Oil up almost 9%
4. Lots of whipsaws
5. Bonds down tooEven so, YTD uptrend completely intact and CPI critical, but think we may enter phase where inflation stays above 5% but past peak.
— Abigail Doolittle (@TheChartress) February 10, 2023
Weekly $SPX update: a mild pullback as the $VIX jumped from multi-year lows. With rates on the rise and CPI next week, the confluence of 10 and 40 week EMAs near 4000 could be important potential support on any further selling. pic.twitter.com/ZIuh6qN0jk
— Michael Turvey (@MikeTurvey_TDA) February 10, 2023
Decision time soon for the Dow $INDU$SPY $QQQ pic.twitter.com/O35nEC36I9
— Justin Spittler (@JSpitTrades) February 10, 2023
Bearish patterns have failed repeatedly since the October lows.
The latest short-term set-up remains alive (barely) heading into next week.
$SPX pic.twitter.com/cAD0lrvgYe— Frank Cappelleri (@FrankCappelleri) February 10, 2023
Technical buy signals have been a bull trap for the past 14 months.
Five Breadth Thrusts – 12/21, 5/22, 8/22, 10/22, and 1/23. pic.twitter.com/AtZLr8w7CE
— 3Fourteen Research (@3F_Research) February 10, 2023
A fun stat you can share at your dinner or dance party tonight:
Over the past seven decades, the S&P 500 has *never* dropped over any 20-year period.
The lowest 20-year return has been +2.2%/year, which amounts to a 50% total return. pic.twitter.com/LfVis58qeR
— Callie Cox (@callieabost) February 10, 2023
A big week coming for $UUP and $GLD – both above the 50-sma, going into CPI on Tuesday. One is going to need to break below. pic.twitter.com/a1rdkiNGgK
— Larry Tentarelli, Blue Chip Daily (@LMT978) February 10, 2023
$UUP – Mr. Wrecking Ball back above 10 week sma. pic.twitter.com/MpBBQVPvDD
— Larry Thompson (@HostileCharts) February 10, 2023
Ruh roh $TNX pic.twitter.com/G1xGFTGjc9
— Michael Kahn, CMT (@mnkahn) February 10, 2023
$BTC and $BTC: $SPY pic.twitter.com/ybLNEKLXtY
— Stacey.A.Lee (@BBaxter2020) February 10, 2023
My favorite Super Bowl moment occurred in 2014.
Radioshack $RSH spent 2% of its market cap on a commercial. pic.twitter.com/whrVjKXWzR
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 4, 2022
By my math, a team from Philly has won a World Series or Super Bowl 8 times.
Every single time something bad happened soon after.
Totally random, probably. But what if it isn't….@eagles @chiefs #superbowl pic.twitter.com/2vQnCOyuG0
— Ryan Detrick, CMT (@RyanDetrick) February 10, 2023