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Today’s Summary
Monday, April 25th, 2022
Indices: Nasdaq 100 +1.32% | Russell 2000 +0.70% | Dow +0.70% | S&P 500 +0.57%
Sectors: 6 of the 11 sectors closed higher. Technology led, gaining +1.50%. Energy lagged by a wide margin, dropping -3.31%.
Commodities: Crude Oil futures moved lower by -3.46% to $98.54 per barrel. Gold futures dropped -1.98% to $1,896 per ounce.
Currencies: The US Dollar Index rose +0.61% to a fresh two-year high.
Crypto: Bitcoin gained +2.27% to $40,364. Ethereum rose +3.08% to $3,011.
Interest Rates: The US 10-year Treasury yield fell to 2.824%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Commodities at an area of interest $BCOM pic.twitter.com/LLyDcuLi2V
— Drew Wells, CMT, CIMA® (@DrewTheCharts) April 25, 2022
Today’s Chart of the Day was shared by Drew Wells (@DrewTheCharts). It’s a daily candlestick chart of the Bloomberg Commodity Index over the past year. Commodities have been outperforming Stocks and Bonds by a longshot this year. However, they’ve come under pressure in the past week, and the strong uptrend looks vulnerable in the near term. The index broke out to its highest level in nearly 8-years last Monday, however that breakout failed to hold, and we’re currently testing the rising trendline that has been in place since the end of last year. As we know, failed breakouts often lead to fast moves lower, and it also doesn’t help that RSI has formed a bearish momentum divergence. The longer-term trend remains in tact for now, but it wouldn’t be surprising to see some mean reversion from Commodities in the coming weeks.
Quote of the Day
“The tape tells all, and our job is to learn how to listen properly.”
– Stan Weinstein
Top Links
Markets Still Haven’t Oversold – CNBC
In this clip, Chris Verrone of Strategas Research shares his thoughts on the current market environment.
Weekly Macro Trends – Potomac Fund Management
Dan Russo highlights some of the noteworthy macro themes out there right now.
Joy and Pain – The Weekly Trend
In this podcast, David Zarling, Ian McMillan, and Dan Gorghuber discuss some of the most important technical developments.
What Does the Bond Market Rout Mean for the Stock Market? – A Wealth of Common Sense
Ben Carlson takes a look at how the sell-off in Bonds is impacting Stocks.
Join us in-person or virtually at the 49th Annual CMT Symposium on April 28th-29th in Washington D.C.
Top Tweets
Looking at the best/worst performers on the $SPX today and you can see a picture of growth getting a bounce and the energy/materials names that had done well getting sold. One day rotation or the start to something longer-term? too soon to say in my view.
— Andrew Thrasher, CMT (@AndrewThrasher) April 25, 2022
Most of the S&P 500 bounced off their morning lows with the Musk/Twitter hook up news, except for Energy, and really, many commodities.
Volume flows on $XLE were about 1.3x average as it was yet another volatile session for Crude Oil today.
cc: $SPY pic.twitter.com/EpHsdtACES
— Jack Damn (@JackDamn) April 25, 2022
Tech & smalls lead $QQQ $IWM pic.twitter.com/TJUSwcj109
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) April 25, 2022
Market staged a nice reversal today after a weak open with the $QQQ ⬆️1.3% & $SPY ⬆️0.6% both on an increase in volume. Commodity names cont. their declines from last week. Lows outpaced new highs as expected after the weak open. Today seems like a meaningful reversal but the
1/2 pic.twitter.com/OHz9R6AnGu— Mike Fuetsch, CMT (@OfficialFuetsch) April 25, 2022
Not oversold yet pic.twitter.com/uOdEzq5jLx
— Strategas (@StrategasRP) April 25, 2022
Big oops in S&P 500 Energy? $SPN $SPX pic.twitter.com/THMYF0gwMa
— Shane C. Murphy, CMT (@murphycharts) April 25, 2022
Going thru charts, these 5 stood out:
1. Friday was an 11:1 down day (declining volume 11x advancing volume). 1st 10:1 down day since 11/30/2021. Doesn't necessarily negate the March breadth thrusts, but burden of proof is back on the bulls. @NDR_Research pic.twitter.com/rB2sBsxB2d— Ed Clissold (@edclissold) April 25, 2022
U.S. commodities’ gains have cooled … percentage with positive monthly returns has fallen sharply but remains >50%
@DataArbor pic.twitter.com/6A8vLtrF7E— Liz Ann Sonders (@LizAnnSonders) April 25, 2022
Equities and commodities both feeling it as the USD is starting to weigh in…$DXY $SPX pic.twitter.com/byIWRo6Wj3
— Greg Rieben (@gregrieben) April 25, 2022
While gold stagnates and bitcoin drops, the dollar has been strong and the RSI has been confirming. This hurts a lot of inflation narratives. pic.twitter.com/ISKPkPd7DA
— Dan Russo, CMT (@DanRusso_CMT) April 25, 2022
Mean reversion time, or is the dollar just getting started? pic.twitter.com/5HFfsK09z1
— Scott Brown, CMT (@scottcharts) April 25, 2022
Well, let's say farewell to the $TWTR chart.
Assuming the deal goes through, and Twitter goes private, this is pretty much the extent of trading. Not a lot to write home about, but it should end up at a respectable $54 bucks or so.
We'll shift to $FB, $PINS, and $SNAP for now. pic.twitter.com/TyNnZRTjo2
— Jack Damn (@JackDamn) April 25, 2022
You’re all caught up now. Thanks for reading!