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Today’s Summary
Wednesday, July 6th, 2022
Indices: Nasdaq 100 +0.62% | S&P 500 +0.36% | Dow +0.23% | Russell 2000 -0.79%
Sectors: 7 of the 11 Sectors closed higher. Utilities led, gaining +1.04%. Energy lagged, dropping -1.71%.
Commodities: Crude Oil futures fell -0.97% to $98.53 per barrel. Gold futures dropped for the seventh straight day -1.55% to $1,737 per ounce.
Currencies: The US Dollar Index rose +0.55% to its highest level since 2002.
Crypto: Bitcoin rose +1.87% to $20,545. Ethereum gained +5.25% to $1,191.
Interest Rates: The US 10-year Treasury yield rebounded to 2.934%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Key level for Ags here, back to the scene of the breakout. $DBA pic.twitter.com/uRFAd6hEr3
— Tarek I. Saab (@FibLines) July 6, 2022
Today’s Chart of the Day was shared by Tarek Saab (@FibLines). It’s a daily candlestick chart of the Agricultural Commodities ETF, $DBA, over the past 20 months. This ETF tracks a basket of 10 Commodities including, Soybeans, Wheat, Corn, Coffee, Live Cattle, and more. It broke out at the end of last year and rallied about 18% up until May of this year. It’s given back that entire move since then, and it is now retesting the breakout level around $19.50. This is an important test for Commodities. Was that it for food inflation? Or, is this just a classic retest within an uptrend?
Quote of the Day
“The trouble with institutional investors is that their performance is usually measured relative to their peer group and not by an absolute yardstick. This makes them trend followers by definition.”
– George Soros
Top Links
Seemingly Intent on Reaching the pre-COVID Highs – Research by Potomac
Dan Russo makes the case for a restest of the Feb 2020 highs in the S&P 500.
What Happened to Energy? – Bespoke
Bespoke takes a look at the sharp reversal in the Energy sector.
Energy Stocks Attempting to Break Down Thru Key Support! – Kimble Charting Solutions
Chris Kimble points out that the Energy sector is testing key support.
How SAMT is Positioning in the Current Market Environment – Strategas Asset Management
In this clip, Todd Sohn offers his thoughts on the current market environment.
Get Ready for the Quadrennial Rally – Almanac Trader
Seasonality expert, Jeff Hirsch explains why he thinks the market will bottom in August-October.
Top Tweets
Weak day outside of megacap tech pic.twitter.com/TQrbR6wYts
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 6, 2022
#ES_F, 1h
3850 — is the bear market line.
Can ES move above it? pic.twitter.com/127v4xL5OO
— Yuriy Matso (@yuriymatso) July 6, 2022
A little distracted by the long weekend, but large speculators in $SPX futures are in the bottom 10% of historical net-long positions. Sentiment continues to be the one bright spot in an otherwise dark tape. $SPY pic.twitter.com/Vui7c2q5JH
— RenMac: Renaissance Macro Research (@RenMacLLC) July 6, 2022
Trends happen fast.
Energy now down more from its 52-week high than Technology. Unbelievable. pic.twitter.com/RsoXCnbIqo
— Bespoke (@bespokeinvest) July 6, 2022
US High Yield credit spreads have increased to 599 bps, their widest since July 2020. If we're in/entering a recession, continued widening should be expected, as spreads moved above 1000 bps in each of the last 3 recessions. pic.twitter.com/o8trSSmAIL
— Charlie Bilello (@charliebilello) July 6, 2022
It's a bad idea to chase stocks – especially in a bear market
In June people panic chased into oil stocks as Oil looked like it would never dip again …Cramer said ONLY buy oil on dips on June 6..woops
Welcome to the bear market oil
Not sure what comes next
$xle $spy pic.twitter.com/Vcooio9SFA— Howard Lindzon (@howardlindzon) July 6, 2022
Interesting to see, first material break in gasoline. Note how negatively correlated they've been since Q3 2021.$SPY pic.twitter.com/496N4eeayK
— Arun S. Chopra CFA CMT? (@FusionptCapital) July 6, 2022
$XBI Weekly. Biotech facing its first resistance hurdle. Strong primary downtrend – be cautious. pic.twitter.com/9JFfuwYxBT
— Brian G (@alphacharts) July 6, 2022
More and more commodity-related stocks are losing steam and violating critical support levels.$SLX $COPX $WOOD $MOO pic.twitter.com/fa5IlOHxQz
— Alfonso Depablos (@AlfCharts) July 6, 2022
nothing to see here folks. just three base metals… #copper #aluminum #zinc pic.twitter.com/kIsho2wzS2
— David Cox, CMT, CFA (@DavidCoxWG) July 6, 2022
How many analysts think they have a differentiated view on Caterpillar… But really they're just trading copper?$CAT pic.twitter.com/sERQp6oe1s
— Mike Singleton, CFA (@InvictusMacro) July 6, 2022
Thieves are going to start dropping off copper at construction sites pic.twitter.com/7Tx6I5kGiv
— Tom Hearden (@followtheh) July 6, 2022
You’re all caught up now. Thanks for reading!