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Today’s Summary
Thursday, February 23rd, 2023
Indices: Nasdaq 100 +0.94% | Russell 2000 +0.71% | S&P 500 +0.53% | Dow +0.33%
Sectors: 7 of the 11 sectors closed higher. Technology led, gaining +1.66%. Utilities lagged, dropping -0.52%.
Commodities: Crude Oil futures gained +1.95% to $75.39 per barrel. Gold futures dropped -0.80% to $1,827 per ounce.
Currencies: The US Dollar Index inched higher by +0.09% to $104.59.
Crypto: Bitcoin fell -1.03% to $23,939. Ethereum rose +0.44% to $1,651.
Interest Rates: The US 10-year Treasury yield fell to 3.883%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The wrecking ball is back.#USD $DXY pic.twitter.com/YHRgFccrll
— Greg Rieben (@gregrieben) February 23, 2023
Today’s Chart of the Day was shared by Greg Rieben (@gregrieben). This is one of the more concerning charts out there right now. It’s a daily candlestick chart of the US Dollar Index ($DXY) over the past 16 months, with its 200-day moving average in black. The Dollar Index has been rebounding since the beginning of February, closing at a one-month high today. It reclaimed $103 a couple of weeks ago, forming what looks like a failed breakdown. $103 has been a crucial level for the Dollar Index as it represents the former highs from 2016 & 2020. Greg calls it the ‘wrecking ball’ because Dollar strength has been putting pressure on risk assets for more than a year now. It’s no surprise that Stocks, Gold, and Crypto started struggling earlier this month right when the Dollar started bouncing. As long as $DXY is above $103, the risk is to the upside.
Quote of the Day
“You don’t need analysts in a Bull Market,
and you don’t want them in a Bear Market”
– Gerald Loeb
Top Links
Volatility Tracks with the Dollar – Bloomberg
Frank Cappelleri points out the VIX has been moving with the US Dollar Index recently.
There are Some Really Good Signs That This is More Than a Bear Market Rally – The Street
In this quick clip, Jay Woods shares his technical perspective on the current market.
Pay Attention to What Matters – All Star Charts
Ian Culley examines what the relative strength of the Consumer Staples sector could suggest about the yield curve.
How to Tell If Buyers or Sellers Are Winning – Investors Business Daily
Brian Shannon joins the team at IBD to discuss the Anchored VWAP indicator.
Top Tweets
Daily Mkt Mood: Mixed
1. Stocks close higher
2. Intraday chop ends in gains
3. Big tech shakes off weakness
4. Bonds up though too
5. Volume still lightPCE may be key Fri. Based on how gritty support is perhaps bulls win.
Sorta feels like $SPX is climbing the wall of worry.
— Abigail Doolittle (@TheChartress) February 23, 2023
Final heat map of the S&P 500's $SPY performance from today pic.twitter.com/m0maNOTceo
— StockMKTNewz – Evan (@StockMKTNewz) February 23, 2023
$QQQ and $QQQE hinging up at a likely area of support associated with their December highs pic.twitter.com/DU6b3o2hut
— Stacey.A.Lee (@BBaxter2020) February 23, 2023
1 for the diagonals $SPY pic.twitter.com/nbMIRjzHPN
— Jay R. Ligon (@TheeDisruptor) February 23, 2023
$SPY holding where it "should" to be a healthy market IMO. pic.twitter.com/DzfNzRFFDg
— Michael Nauss, CMT, CAIA ?? (@MichaelNaussCMT) February 23, 2023
Active managers tried to get ahead of the market in recent weeks and are now experiencing a dose of buyer's remorse as volatility weighs on prices.https://t.co/Bl3aCbbxuh pic.twitter.com/fV8CwXc3MM
— Willie Delwiche, CMT, CFA (@WillieDelwiche) February 23, 2023
#ES_F, monthly
The 4150 level has acted as resistance for 10 months now… pic.twitter.com/6Oq7IWuI6q
— Yuriy Matso (@yuriymatso) February 23, 2023
Healthcare down 8 weeks in a row headed into this week.
Down 1.37% so far this week.
On the edge of my seat watching it go for #9.$XLV pic.twitter.com/adthtXU9r3
— David Rath (@DJwrath) February 23, 2023
International stocks are attempting to hang on to recent gains against U.S. stocks.
Remember two things:
1) A new trend could take years to play out
2) It does NOT mean that international stocks are now “easy money”#sentimentrader pic.twitter.com/5uaaWEaoLD— Jay Kaeppel (@jaykaeppel) February 23, 2023
One of my favorite nerd charts:
The gap between the S&P 500's earnings yield (or profit growth potential per share) and the 10-year yield is 1.6%, the lowest since 2007.
When bond yields and earnings yields are this close, it's historically led to lower stock returns. pic.twitter.com/DiSBaGHLDX
— Callie Cox (@callieabost) February 23, 2023
When you've been stuck in a range for nearly a year. pic.twitter.com/ziJ9d3QoXP
— Arun S. Chopra CFA CMT? (@FusionptCapital) February 23, 2023