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Today’s Summary
Monday, February 14th, 2022
Indices: Dow -0.49% | S&P 500 -0.38% | Nasdaq 0.00% | Russell 2000 -0.46%
Sectors: 2 of the 11 sectors closed higher. Consumer Discretionary led, gaining 0.57%. Energy lagged, falling 2.36%.
Commodities: Crude Oil futures rose 2.53% to a fresh seven-year high of $95.46 per barrel. Gold futures continued higher for the seventh consecutive day, rising 1.48% to $1,869 per ounce.
Currencies: The US Dollar Index rose 0.27%.
Interest Rates: The US 10-year Treasury yield rose to 1.989%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$XME S&P Metals & Mining breaking out? pic.twitter.com/UvZO5pCEFq
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 14, 2022
Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). It’s a daily candlestick chart of the Metals & Mining ETF, $XME, over the past five years. Commodity-related stocks continue to be a bright spot in this dull tape. This ETF has exposure to Coal, Industrial Metals, and Precious Metals. The five-heaviest weighted stocks include $BTU, $AA, $ARCH, $ATI, and $NEM. Mike points out that $XME is breaking out to its highest level in nearly a decade. It’s been rangebound between $40 and $48 over the past nine months, but it’s clearly resolving higher out of that range now.
Quote of the Day
“A big part of my process is taking signals from markets. I’ve always believed markets are smarter than I am.”
– Stanley Druckenmiller
Top Links
5 Charts You Should Be Watching This Week – PFT Trading
Greg Rieben breaks down five charts to watch this week.
The Battle Lines are Drawn: Growth vs. Value – Means to a Trend
Austin Harrison examines the rotation out of Growth and into Value.
One of These Sectors is Not Like the Others – Bespoke
Bespoke takes a look at the dramatic outperformance from the Energy sector.
Do You Own the Right FANG? – All Star Charts
JC Parets highlights some of the strongest/weakest areas of the market.
No Cigars – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss the most important technical developments across the markets.
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Top Tweets
i'd like to see the daily $SPX chart get back above this line in the 4,515-4,535 range… pic.twitter.com/jQyMGxObgL
— David Cox, CMT, CFA (@DavidCoxWG) February 14, 2022
I've seen numerous twitter accounts post the same H&S chart. As I mentioned last week, this chart pattern is now so OBVIOUS that I really wonder if this scenario is going to play out…
The market likes to do what few expect.
What's your take on it? Will it play out? pic.twitter.com/5dOV90S1WC
— Yuriy Matso (@yuriymatso) February 14, 2022
will all that former support turn into resistance? $IWM pic.twitter.com/8N5Vih53Vg
— J.C. Parets (@allstarcharts) February 14, 2022
The "average stock" has taken the leadership baton pic.twitter.com/TYsxZH0c3X
— Strategas (@StrategasRP) February 14, 2022
Fibonacci retracements can be great gauges of support during corrections
For the FAANG+M Index ($FB $AMZN $AAPL $NFLX $GOOGL $MSFT), a decisive breakdown below the 38.2% retracement of 2020-2021 uptrend would target the 61.8% retracement#fairleadstrategies pic.twitter.com/VWZeF8dkzl
— Katie Stockton, CMT (@StocktonKatie) February 14, 2022
This is sure to anger someone, people always seem to be angered by contrarian takes.
And there’s arguably nothing more contrarian than being long tech and short energy right about now, especially with where this chart sits. pic.twitter.com/LXD7KbVIOt
— Steve Deppe, CMT (@SJD10304) February 14, 2022
60/40 portfolio is off to its worst start in the past 25 years. https://t.co/iwxwQB25N6 pic.twitter.com/NOhsj2vwJU
— Willie Delwiche, CMT, CFA (@WillieDelwiche) February 14, 2022
HY Spreads break out to highest level since December 2020. Could be Fed rate hike expectations, war or something else, but either way it isn't a bullish message for equity markets pic.twitter.com/GBdWQ3aWof
— Scott Brown, CMT (@scottcharts) February 14, 2022
High yield/Junk continues to be in free fall.
Stocks continue to ignore and hold up better than expected.
But something has to give…$JNK #highyield #riskoff pic.twitter.com/oyeAH6U5Wt
— Greg Rieben (@gregrieben) February 14, 2022
$JNK — Update on bearish cycle and pattern breakdown. pic.twitter.com/MwEhKE0NAt
— Nautilus Research (@NautilusCap) February 14, 2022
The gap between 2-year and 10-year Treasury yields is the narrowest since April 2020. pic.twitter.com/sQpw1h2V7v
— Lisa Abramowicz (@lisaabramowicz1) February 14, 2022
2yr forward 2s10s just inverted. The last two times that happened a recession started 21 months later, which would be Nov 2023: pic.twitter.com/Ei4u3IeC8j
— Nick Reece (@nicholastreece) February 14, 2022
$GLD
confirmed break pic.twitter.com/J934fUlhQZ— kkernttb (@kkernttb) February 14, 2022
"Polarity doesn't work on ratio charts" ? $SPX $GLD pic.twitter.com/HtWxGTtO39
— Steven Strazza (@sstrazza) February 14, 2022
On this day in 2005 YouTube was created
21 months later Google $GOOGL would acquire YouTube for $1.65 Billion
Last quarter alone YouTube brought in $8.6 Billion of revenue from just ads pic.twitter.com/r5dDDXdrhL
— Hipster Trader (@TickerHistory) February 14, 2022
You’re all caught up now. Thanks for reading!