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Today’s Summary
Thursday, June 9th, 2022
Indices: Dow -1.94% | Russell 2000 -2.12% | S&P 500 -2.38% | Nasdaq 100 -2.74%
Sectors: All 11 sectors closed lower by -1.50% or more. Consumer Staples led, but still fell -1.50%. Communications lagged, dropping -3.07%.
Commodities: Crude Oil futures fell -0.49% to $121.51 per barrel. Gold futures inched lower by -0.20% to $1,853 per ounce.
Currencies: The US Dollar Index gained +0.74%.
Crypto: Bitcoin fell -0.58% to $30,011. Ethereum slipped -0.30% to $1,785.
Interest Rates: The US 10-year Treasury yield rose to 3.047%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Going back to 1970s (using @Bloomberg historical crude price index), quite rare to see oil prices spike at this fast of an annual rate (orange) and not have a recession associated with it (late 1980s and early/mid-2000s were exceptions) pic.twitter.com/As2mnWEVH3
— Liz Ann Sonders (@LizAnnSonders) June 9, 2022
Today’s Chart of the Day was shared by Liz Ann Sonders (@LizAnnSonders). It’s a chart of Crude Oil over the past five decades, along with a 12-month % change indicator (orange). Crude Oil is up about 70% over the past year. Liz Ann points out that Oil price spikes of this magnitude are often associated with recessions. Will this time be different?
Quote of the Day
“Fall in love with people, children, and dogs, but not stocks.”
– Barton Biggs
Top Links
The Ups and Downs of Sentiment – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
So I Guess We’re Just Going to do This Until Friday | 5 Charts – LPL Financial Research
In this quick video, Ryan Detrick and Scott Brown highlight five noteworthy charts to keep an eye on.
Weaker Yen Points to Higher Rates – All Star Charts
The team at All Star Charts points out that the Dollar/Yen currency pair is suggesting interest rates will continue higher.
Are Yields Finally Ready to Top? History Suggests Not – StockCharts
Erin Swenlin explains why we likely haven’t seen interest rates peak yet.
Top Tweets
Dow, Nasdaq, S&P 500 have worst day i 3 weeks (May 18, 2022)$DJI $INDU $NDX $IXIC $COMPX $GSPC $SPXhttps://t.co/D3l4FlEXOj pic.twitter.com/UsQZFbEeRT
— Jared Blikre (@SPYJared) June 9, 2022
SPX was green in the morning pic.twitter.com/qqxQEaQMTT
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) June 9, 2022
strong break to the downside in front of tomorrow's CPI. $QQQ pic.twitter.com/S17kaVI8ej
— Steven Spencer (@sspencer_smb) June 9, 2022
$SPX – Below critical level
RSI – Below 50
A/D Line making a lower high pic.twitter.com/ZI0Ia5vhkP
— Larry Thompson, CPA (@HostileCharts) June 9, 2022
$IWM #IWM Talk about a fake out on Tuesday above the covid low VWAP. pic.twitter.com/K2AOaptzZr
— Jake Wujastyk (@Jake__Wujastyk) June 9, 2022
(1/4) It is great to see the recent bullish divergences between the Mid/Small caps and the SPX/NDX (points labeled "1" in chart below). This has led to a very swift rebound, enough to make one wonder if the worst is over. pic.twitter.com/0Ms02YUxFC
— David Lundgren, CMT CFA (@dlundgren3333) June 9, 2022
i think I made this chart after hearing Stanley Druckenmiller talk about commodities and their impact on consumer stocks… most commodity rallies seem to coincide with consumer underperformance
here's the last 20 years:
top: discretionary vs. $SPX relative
bottom: $CRB pic.twitter.com/t3KKganq5k— David Cox, CMT, CFA (@DavidCoxWG) June 9, 2022
$ILF Latin American Equity gapping down hard today below its 200 DMA. Had shown great RS this year.. Similar action in Brazil $EWZ & Chile $ECH. pic.twitter.com/Y8NYmRzkhW
— Victor Riesco (@Global_Trader) June 9, 2022
I think all eyes have to be on rates ahead of this CPI print
5-Yr is closest to new highs, just 1.8 bps from its 2018 high… pic.twitter.com/uj9F6m6FT3
— Mike Singleton, CFA (@InvictusMacro) June 9, 2022
What do we think the 2-year yield looks like it wants to do tomorrow? @daChartLife pic.twitter.com/LLw7tw5rqj
— Scott Brown, CMT (@scottcharts) June 9, 2022
2-year yield testing highs again pic.twitter.com/1I77kxbVUR
— David Rath (@DJwrath) June 9, 2022
Here's Exxon Mobil in the process of resolving a decade-long base to new all-time highs.$XOM pic.twitter.com/qfBH6GpWA4
— Alfonso Depablos (@AlfCharts) June 9, 2022
Exxon made it's first new high since 2014 yesterday.
It was kicked out of the Dow on Aug 31, 2020. This was after 92 years in the Dow.
Salesforce replaced it. One is up 185% since the change, the other is down 30%.
This is why following sentiment is so important. pic.twitter.com/6wkgtS1loc
— Ryan Detrick, CMT (@RyanDetrick) June 9, 2022
You’re all caught up now. Thanks for reading!