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Today’s Summary
Tuesday, May 24th, 2022
Indices: Dow +0.15% | S&P 500 -0.81% | Russell 2000 -1.56% | Nasdaq 100 -2.20%
Sectors: 5 of the 11 sectors closed higher. Utilities led, gaining +2.00%. Communications lagged, dropping -3.55%.
Commodities: Crude Oil futures slipped -0.47% $109.77 per barrel. Gold futures rose +0.95% to $1,865 per ounce.
Currencies: The US Dollar Index fell -0.32%.
Crypto: Bitcoin rose +1.78% to $29,583. Ethereum inched higher by +0.38% to $1,979.
Interest Rates: The US 10-year Treasury yield fell to 2.754%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
https://twitter.com/sstrazza/status/1529199367835594757
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). The Consumer Discretionary sector is now the worst-performing sector year-to-date, down 32.5%. This is an extremely important sector for both the Stock Market and the Economy because it reflects the appetite for consumption. Steve points out that it’s down more than 20% vs. the S&P 500 for the first time in more than a decade. The past two times that Consumer Discretionary entered into bear market territory on a relative basis like this were in 2007 and 2000. Both instances marked major tops in the S&P 500. Could Discretionary stocks once again be hinting at another waterfall decline for the S&P 500?
Quote of the Day
“Speculation is dealing with the uncertain conditions of the unknown future. Every human action is a speculation in that it is embedded in the flux of time.”
– Ludwig von Mises
Top Links
The Market Will Do What the Market Will Do – Tom Basso
Market Wizard, Tom Basso shares his thoughts on the current environment.
Massive Sector Performance Spreads – Bespoke
Bespoke looks at the huge spread between the best-performing sector and the worst-performing sector.
Looking for Less Bad | Who Charted? – Potomac Fund Management
In this video, Dan Russo and Drew Wells highlight six noteworthy charts in six minutes.
Can Treasury Bonds (TLT) Reverse Higher From Historic Oversold Level? – Kimble Charting Solutions
Chris Kimble points out that TLT is attempting to print a large bullish reversal candle on the monthly chart.
Quiet Trading Before Memorial Day, Thursday Best – Almanac Trader
Seasonality expert, Jeff Hirsch examines how stocks have historically performed before Memorial Day.
Top Tweets
Final heat map of the S&P 500's performance from today pic.twitter.com/jINun2kSzM
— Stock Market News (@StockMKTNewz) May 24, 2022
Defensive and Value sectors leading a comeback here pic.twitter.com/No60Pzq92P
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 24, 2022
60/40 is working in May. Stocks down, bonds blunt some of the damage. pic.twitter.com/EKDbFdyAB3
— Liz Young (@LizYoungStrat) May 24, 2022
Asset allocation doesn't have to just be a choice between stocks and bonds.
What worked in the last decade might not work in the next decade.
More options can lead to better opportunities & outcomes. pic.twitter.com/dvziXfILKb
— Willie Delwiche, CMT, CFA (@WillieDelwiche) May 24, 2022
There is some evidence that inflation could be peaking. IF THAT'S TRUE, odds are this correction is a cyclical non-recessionary bear market and any material weakness from here will likely be the last leg down before a low is established. pic.twitter.com/jq6SRrCbIW
— Mark Minervini (@markminervini) May 24, 2022
$jnk #junk — JNK decline may have run its, or the worst of its, decline. pic.twitter.com/eV2rp2bjWv
— Nautilus Research (@NautilusCap) May 24, 2022
The $USDJPY is undercutting its pivot lows from late April…will the 10yr yield $TNX follow? pic.twitter.com/czdA24X89b
— Ian Culley (@IanCulley) May 24, 2022
Big breakdown in 10yr treasury yields today as well, explaining a big portion of the drop in $USDJPY today… $TNX pic.twitter.com/F58ViRJabp
— Matt Weller CFA, CMT (@MWellerFX) May 24, 2022
While copper retests the lower bounds of its range, metals & mining stocks hold above former highs so far. pic.twitter.com/ABdLBCL2t7
— Alfonso Depablos (@AlfCharts) May 24, 2022
Cotton has outpeformed "disruptive innovation" since ARKK's inception.
Cotton. pic.twitter.com/oYbQP0Kcm5
— Brian G (@alphacharts) May 24, 2022
You’re all caught up now. Thanks for reading!