Sponsored By:
Today’s Summary
Tuesday, May 17th, 2022
Indices: Russell 2000 +3.19% | Nasdaq 100 +2.62% | S&P 500 +2.02% | Dow +1.34%
Sectors: 10 of the 11 sectors closed higher. Tech led, gaining +2.90%. Consumer Staples was the only sector that closed lower, falling -0.69%.
Commodities: Crude Oil futures fell -1.58% to $112.40 per barrel. Gold futures rose +0.27% to $1,819 per ounce.
Currencies: The US Dollar Index dropped -0.85%.
Crypto: Bitcoin gained +1.90% to $30,400. Ethereum rose +3.39% to $2,089.
Interest Rates: The US 10-year Treasury yield moved higher to 2.995%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Is there a better back court duo right now more critical to the direction of stock prices? A weaker dollar I think gets a stock market rally going. A bond market not crashing would also help. Is this actual resistance or just lines on a chart? pic.twitter.com/BY5IkwJolZ
— J.C. Parets (@allstarcharts) May 17, 2022
Today’s Chart of the Day was shared by JC Parets (@allstarcharts). The chart shows the US 10-year Treasury yield ($TNX), and the US Dollar Index ($DXY). Interest Rates and the Dollar have been putting pressure on Stocks all year, as they’ve both climbed to multi-year highs. Stocks don’t like it when these assets move rapidly higher. JC points out that they’re both testing long-term resistance levels. 3.00-3.25% has been resistance for the 10-year yield since 2013, and $103 has been resistance for the Dollar Index since 2016. It would likely be bullish for Stocks if these two reverse lower, or even just pause here. If they continue higher instead, it would likely put further pressure on Stocks. Either way, these two are about to give us some valuable information, so keep an eye on which direction they resolve.
Quote of the Day
“No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation.”
– Robert Rhea
Top Links
The Overbought Buck – Bespoke
Bespoke takes a look at the rally in the US Dollar Index.
Health Care: Losing Less – Potomac Fund Management
Dan Russo does a deep dive into the Health Care sector.
The DXY is at a Critical Juncture – All Star Charts
The team at All Star Charts examines an important test in the US Dollar Index.
Bitcoin Could Fall Another 40% If It Fails to Hold the Key Support Level of $27,000, Fairlead’s Katie Stockton Says – Business Insider
Katie Stockton shares her outlook on Bitcoin.
Top Tweets
Daily Market Mood: Risk-On
Stocks rally, commodities up as bonds and the dollar fell.
A rather conventional day for such an unconventional time period.
Until $VIX 20, today’s action prob means stocks up more from here.
Enjoy (if so)!
— Abigail Doolittle (@TheChartress) May 17, 2022
The S&P 500 just made a 2% gain in two of the past three days coming off of a 52-week low.
The last times that happened?
March 2009 and March 2020.
— Ryan Detrick, CMT (@RyanDetrick) May 17, 2022
Final heat map of the S&P 500's performance from today pic.twitter.com/LV2yhqOTEW
— Stock Market News (@StockMKTNewz) May 17, 2022
#RTY_F, 1d
This is EPIC… as if someone was watching this level. pic.twitter.com/4AXZSl9ETP
— Yuriy Matso (@yuriymatso) May 17, 2022
institutional cash levels have risen to the highest level since 9/11 h/t @BofAML pic.twitter.com/61P3UzZu4Q
— David Cox, CMT, CFA (@DavidCoxWG) May 17, 2022
#VIX $VIX — Cycle & Price ??????… pic.twitter.com/v693k2D3ec
— Nautilus Research (@NautilusCap) May 17, 2022
After 20 years of absolutely no progress, these healthcare stocks are finally trying to break out of their multi-decade base.$MRK $PFE $BMY pic.twitter.com/NSto0QpSHE
— Alfonso Depablos (@AlfCharts) May 17, 2022
Gold stocks oversold and nearing support pic.twitter.com/3VRFkmDMz9
— Strategas (@StrategasRP) May 17, 2022
Wheat tests resistance as seasonal window is turning unfavorable. Want a clue regarding inflation? Keep an eye on this one.#sentimentrader pic.twitter.com/e04wYsGFmP
— Jay Kaeppel (@jaykaeppel) May 17, 2022
False breakout in USD? From failed moves come fast moves, the saying goes. $DXY pic.twitter.com/5893atVF47
— Tarek I. Saab (@FibLines) May 17, 2022
If you were on the failed moves fast moves playbook in 2022 you're killing it.$WMT pic.twitter.com/A4Xic5iZjX
— J4 (@J4_doji) May 17, 2022
You’re all caught up now. Thanks for reading!