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Today’s Summary
Tuesday, February 15th, 2022
Indices: Dow +1.22% | S&P 500 +1.58% | Nasdaq +2.53% | Russell 2000 +2.76%
Sectors: 9 of the 11 sectors closed higher. Technology led, gaining 2.63%. Energy lagged, falling 1.05%.
Commodities: Crude Oil futures dropped 3.55% to $92.07 per barrel. Gold futures fell 0.71% to $1,856 per ounce.
Currencies: The US Dollar Index fell 0.32%.
Interest Rates: The US 10-year Treasury yield rose to 2.049% – its highest level since 2019.
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 in a note by Bank of America Global Research. The chart shows the S&P 500 over the past three years along with the US High Yield Options-Adjusted Spread. One of the more bearish developments over the past few weeks has been the widening of credit spreads. In the note, they explain, “The US high yield OAS is breaking out above resistance to suggest a year-long risk-off bottom for this credit spread. Deteriorating credit conditions are a bearish leading indicator, increasing the risk that the SPX completes the head and shoulders top.”
Quote of the Day
“Amateurs want to be right.
Professionals want to make money.”
– Alan Greenspan
Top Links
The S&P 500 Will Still Likely Test its January Low as Similar Stock Market Corrections Took Months to Play Out, Fairlead’s Katie Stockton Says – Business Insider
Katie Stockton shares her technical outlook on the S&P 500.
Revisiting the Biggest Winners and Losers Since the COVID Crash Low – Bespoke
Bespoke breaks down the best and worst-performing stocks in the S&P 1500 since the March 2020 low.
Leadership is Up for Grabs – Potomac Fund Management
Dan Russo examines the strongest and weakest sectors of the S&P 500.
There Aren’t Many Good Reasons to be Bullish on Bonds, Says Rennaissance Macro’s deGraaf – CNBC
In this clip, Jeff deGraaf shares his technical outlook on bank stocks and interest rates.
Will There Be a Bear Market? – StockCharts.com
In this video, Larry Williams takes a look at the bear case for stocks and the possibility of an economic recession.
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Top Tweets
$SPX just dancing around the 200 day pic.twitter.com/fun9TFWJw0
— Tom Hearden (@followtheh) February 15, 2022
$SPX at risk for head and shoulders top while below 4546-4600, via BofA. “…a bearish weekly reversal on a failed attempt to clear resistance at 4495-4546…increases the risk for a 6-month head & shoulders top,” and a break below 4200s would confirm pattern, according to BofA. pic.twitter.com/ozUakMYJV1
— Jessica Menton (@JessicaMenton) February 15, 2022
$XME S&P Metals & Mining again.
And this on a bad day for commodities. Impressive. pic.twitter.com/AGnxJY0tLZ
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) February 15, 2022
Latest BofA fund manager survey shows clients the most bearish on tech stocks since 2006 pic.twitter.com/v7AMBzxwSy
— Dani Burger (@daniburgz) February 15, 2022
global fund managers bullish cyclicals and cash… (and bearish bonds, U.S. equities, tech) – remember, that drove the weakness in that latter… that's why sentiment surveys are contrarian… if everyone sells and is negative, it's harder to get more negative… h/t @BofAML pic.twitter.com/CO48Kgphmt
— David Cox, CMT, CFA (@DavidCoxWG) February 15, 2022
There's bearish, and there's "really bearish." The Street is bearish bonds, but there's surprisingly few forecasts north of 2.50% for year-end '22. Yields may consolidate over coming weeks, but we're doubtful cycle highs on 10's are imminent. @StrategasRP @strategasasset pic.twitter.com/OmiNwBEzQn
— Chris Verrone (@verrone_chris) February 15, 2022
For followers of the DeMARK Indicators, this signal on the daily WTI #crudeoil chart is notable – sell the news? #fairleadstrategies pic.twitter.com/IHrIheQclU
— Katie Stockton, CMT (@StocktonKatie) February 15, 2022
Another false start for gold today, but rocks vs. paper (gold vs. banks) sure looks like it wants to break out higher to me. Exact opposite of the setup in 2020 pic.twitter.com/usTdpNUAXp
— Scott Brown, CMT (@scottcharts) February 15, 2022
There are a lot of people out there getting excited about Gold. I'll wait for the Silver/Gold ratio to catch higher, confirming risk-seeking behavior is entering the precious metals space. $GLD $GC_F $SLV $SI_F pic.twitter.com/RcCBCsIFmB
— Ian Culley (@IanCulley) February 15, 2022
#Gold stopped in its tracks in the 1880 zone (November high) and has now backtested falling support in the 1845 zone. Bulls in control for the time being. Bulls want to see today's low hold and build some momentum for another run to 1880. A break of 1880 targets 1920. $GLD pic.twitter.com/5SHe5wZSqL
— Tarek I. Saab (@FibLines) February 15, 2022
BTC > 41,000 pic.twitter.com/BmwLoiyrMN
— J.C. Parets (@allstarcharts) February 15, 2022
All Models long #BTC pic.twitter.com/rHSpR35LAM
— Rolando Santos (@TKPTrader) February 15, 2022
Let the games begin…
1, 2, or 3*?
*vote below$SPX $MSFT $AMZN pic.twitter.com/VTW7pxSeAp
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 15, 2022
You’re all caught up now. Thanks for reading!