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Today’s Summary
Tuesday, May 10th, 2022
Indices: Nasdaq 100 +1.30% | S&P 500 +0.25% | Russell 2000 -0.02% | Dow -0.26%
Sectors: 4 of the 11 sectors closed higher. Tech led, gaining +1.52%. Real Estate lagged, falling -2.22%.
Commodities: Crude Oil futures moved lower by -3.23% to $99.76 per barrel. Gold futures fell -0.95% to a three-month low of $1,841 per ounce.
Currencies: The US Dollar Index rose +0.16% to its highest level since 2002.
Crypto: Bitcoin gained +1.75% to $30,608. Ethereum rose +3.28% to $2,302.
Interest Rates: The US 10-year Treasury yield fell to 2.997%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
It's a bear market.
Rather than try to guess at when it will end, my focus is on what it looks like when a bull market is re-born. https://t.co/UyTDQM2PMi pic.twitter.com/gDfi1Si6Kf
— Willie Delwiche, CMT, CFA (@WillieDelwiche) May 10, 2022
Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche). The terms bull market and bear market originate from the way in which the two animals fight. Bulls fight with their horns plowing upwards and bears fight with their claws thrashing downwards. Nowadays, the media defines a bear market as a 20% decline from all-time highs on a closing basis. While the S&P 500 hasn’t reached that threshold just yet, it’s pretty safe to label this a bear market. Willie points out that the Value Line Geometric Index, which measures the ‘average stock,’ has joined the Nasdaq and the Russell 2000 in official bear market territory, down more than 20% from its highs. More importantly, it’s below its 2018 highs and its pre-Covid highs. Further pain is likely unless these levels are reclaimed soon.
Quote of the Day
“Interest rates are to asset prices what gravity is to the apple. When there are low interest rates, there is a very low gravitational pull on asset prices.”
– Warren Buffett
Top Links
There Will Be Rallies – PFT Trading
Greg Rieben takes a look at bear market rallies.
The Nasdaq’s Three Day 10% Drop – Bespoke
Bespoke points out that the Nasdaq Composite dropped more than 10% in the three days prior to today.
Riding the Rapids | Who Charted? – Potomac Fund Management
In this quick video, Dan Russo and Drew Wells highlight six noteworthy charts in six minutes.
Commodity Currencies Crumble – All Star Charts
The team at All Star Charts examines what the Aussie Dollar and the Canadian Dollar could be signaling for Commodities.
Update: 1970 Redux vs/ 1962 & 1974 – Almanac Trader
Jeff Hirsch points out that this year continues to look like 1970.
Top Tweets
Daily Market Mood: Mixed
Stocks mainly higher led by tech but bonds up too.
That said, $VIX & options may suggest #StockMarket bounce will continue in near-term.
If yes, maybe yields finally moderate plus… oil back below $100 helps.
Tech dip buyers are the key!
— Abigail Doolittle (@TheChartress) May 10, 2022
Final heat map of the S&P 500's performance from today pic.twitter.com/nYSBcZoRws
— Stock Market News (@StockMKTNewz) May 10, 2022
Confirmation or Capitulation? pic.twitter.com/XIJfMGkATF
— Dan Russo, CMT (@DanRusso_CMT) May 10, 2022
pfft pic.twitter.com/eKOtAwntys
— Bespoke (@bespokeinvest) May 10, 2022
Today's lagging sector, XLRE. pic.twitter.com/pnbNbGxYxe
— Louis Spector (@EastCoastCharts) May 10, 2022
Growth vs. Value slight undercut but held on to the range, at least for now.
$SPYG $SPYV $SPY pic.twitter.com/UlTAaUZBzc— Matthew Timpane, CMT (@mtimpane) May 10, 2022
The 10-year US Treasury #Yield is back below 3.00%!
I'm running the data for our Monthly Investor Guide, and there are just so many indicators pointing to lower bond yields. pic.twitter.com/U2hi18oGn7— jeroen blokland (@jsblokland) May 10, 2022
We often discuss the 2018 HIGHS as they are still critical levels for many risk assets…
For Bonds, it's just the opposite. The 2018 LOWS are the level and we're there now. Logical area for some mean-reversion… $TLT pic.twitter.com/SOmFB9KBSW
— Steven Strazza (@sstrazza) May 10, 2022
Hey, it's something $AGG pic.twitter.com/SzDU7Sk52L
— David Rath (@DJwrath) May 10, 2022
Commodities pic.twitter.com/bbxwp4XXf5
— Petr.bz (@petr_bz) May 10, 2022
What do we think? Has everyone bought into the inflation story enough for a reversal? pic.twitter.com/V1bkCpUrn0
— Mike Singleton, CFA (@InvictusMacro) May 10, 2022
Gasoline futures down hard from Friday's high $UGA pic.twitter.com/JTEKO3Ge6q
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 10, 2022
— Arun S. Chopra CFA CMT? (@FusionptCapital) May 10, 2022
You’re all caught up now. Thanks for reading!