Powered By:
Todayâs Summary
Tuesday, May 9, 2023
Indices: Dow -0.17% | Russell 2000 -0.27% | S&P 500 -0.46% |Nasdaq -0.68%
Sectors: 2 of the 11 sectors closed higher. Industrials led, gaining +0.22%. Materials lagged, falling -0.91%.
Commodities: Crude Oil futures rose +0.75% to $73.71 per barrel. Gold futures gained +0.48% to $2,043 per oz.
Currencies: The US Dollar Index rose +0.26% to $101.65.
Crypto: Bitcoin fell -0.44% to $27,569. Ethereum fell -0.30% to $1,844.
Interest Rates: The US 10-year Treasury yield rose to 3.522%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Todayâs Chart of the Day was shared in a note by Steven Suttmeier at BofA Global Research. The chart shows the S&P 500 (top) and a ratio of Small Caps vs. Large Caps (bottom) over the past century. One of the most bearish technical developments lately has been the underperformance from Small Cap stocks, as the Russell 2000 is testing three-year lows on a relative basis. Small Caps are often viewed as a leading indicator for the broader market, and their relative performance is considered a measure of risk appetite. However, the chart suggests that Small Cap underperformance may not be as bearish as conventional wisdom suggests. Suttmeier notes, “Investors are worried about lackluster Small Caps, but Small Caps tend to lag Large Caps during secular bull markets.”
Quote of the Day
“Diversification is about giving up on the ability to hit a grand slam so you donât strike out at the plate.”
– Ben Carlson
Trendlines > Headlines
The latest episode of Trendlines over Headlines is out!
This week, James Bartelloni joined us to talk technicals. James is a former Top Gun pilot turned technician and the founder of BartsCharts.com. We discussed his unorthodox approach to analyzing the markets and took a close look at Banks and the VIX.
Top Links
Ben Carlson explains why exposure to international equities is prudent despite a decade of underperformance vs. the US.Â
Ian Culley looks at what commercial positioning in Gold suggests about the US Dollar Index.
It’s Just a Matter of Time – The Weekly Grind
Sam McCallum highlights a few noteworthy charts.
Technical Tuesdays – The Chart Report
Here’s the recording from our Twitter Spaces this morning, and be sure to join us again next Tuesday!
Top Tweets
$SPY did it again! Today's volume was not only the lowest of 2023 but the lowest since Black Friday 2022. pic.twitter.com/MK6x1l3bMq
— Barchart (@Barchart) May 9, 2023
Stock watch: The market wobbled last week amid ongoing fears of a banking crisis, and continues to trade short. Indeed, short speculator positions (per the Commitment of Traders report) remain at a multi-year extreme. It suggests that the pain trade remains higher. pic.twitter.com/M4iwSxNwsT
— Jurrien Timmer (@TimmerFidelity) May 9, 2023
Which one is telling us the truth? $SPX, $RSP pic.twitter.com/cTV2sqe9Gx
— Frank Cappelleri (@FrankCappelleri) May 9, 2023
SPX A-D line builds base for new breadth highs
Suttmeier BofA charts.. pic.twitter.com/87pgn7ERXj— Mike Zaccardi, CFA, CMT đ (@MikeZaccardi) May 9, 2023
50M predictions later the equal weighted $SPX has settled at its exact same level, square between the 50 and 200 DMA pic.twitter.com/0kVVTvuXuj
— Arun S. Chopra CFA CMTđ§ (@FusionptCapital) May 9, 2023
Regional banks' YTD price change compared to short interest. $OZK stands out – heavily shorted, but hasn't dipped as much as peers like $ZION & $BOH with similar short interest. đĄ pic.twitter.com/NXfElYHQCL
— Koyfin (@KoyfinCharts) May 9, 2023
Yo, Charts – hereâs the most Brobdingnagian BASE going today pic.twitter.com/b4FiE9AE9u
— da Chart Life (@daChartLife) May 9, 2023
Not a lot of room for BTC to keep weakening without some serious moves down. 200 DMA at 22500. pic.twitter.com/HZhWr1kcrd
— Greg Schnell, CMT (@Schnellinvestor) May 9, 2023
#Bitcoin is looking sketchy up here – breaking down from a symmetrical triangle and below the 50-day EMA for the first time in two months.
If support in the $27K area gives way, a deeper retracement toward $25,250 could be in play. pic.twitter.com/SgshmstfNt
— Matt Weller CFA, CMT (@MWellerFX) May 9, 2023
Hard to believe AAPL + MSFT were just 3% of the S&P 20-years ago. Markets are a voting mechanism. pic.twitter.com/dZaCGWSskj
— Todd Sohn (@Todd_Sohn) May 9, 2023