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Today’s Summary
Thursday, July 7th, 2022
Indices: Russell 2000 +2.43% | Nasdaq 100 +2.16% | S&P 500 +1.50% | Dow +1.12%
Sectors: 10 of the 11 Sectors closed higher. Energy led, gaining +3.61%. Utilities was the only sector that closed lower, but just barely (-0.10%).
Commodities: Crude Oil futures bounced +4.26% to $102.73 per barrel. Gold futures inched higher by +0.18% to $1,739 per ounce.
Currencies: The US Dollar Index was flat (-0.01%).
Crypto: Bitcoin rose +5.29% to $21,633. Ethereum gained +4.46% to $1,238.
Interest Rates: The US 10-year Treasury yield rose to 3.000%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The Wilshire 5000 was down 20.9% over the last 6 months, one of the worst 6-month periods for stocks in the last 50 years.
Has selling after large 6-month declines been a good strategy for long-term investors in the past? No.
Here's the data… pic.twitter.com/Lw6PfwphVX
— Charlie Bilello (@charliebilello) July 7, 2022
Today’s Chart of the Day was shared by Charlie Bilello (@charliebilello). Despite its name, the Wilshire 5000 actually contains about 3,6000 stocks, but it’s a much broader measure of the total stock market than the S&P 500. It fell 20.9% in the first six months of this year, marking one of the worst six-month stretches for the index in its 50-year history. On a brighter note, Charlie points out that longer-term returns have historically been positive after similar six-month declines. As you can see, the index has almost always been higher one year out, and it has always been higher 3, 5, and 10 years out. To be fair, the index continued to decline for 3-6 months before finding a bottom in a few of these scenarios, but perhaps we’re closer to the end of this decline than the beginning.
Quote of the Day
“All through time, people have basically acted the same way in the market as a result of greed, fear, ignorance, and hope.”
– Jesse Livermore
Top Links
Bulls Back Below 20% – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
A Big Move in Biotech – PFT Trading
Greg Rieben points out that one of the weakest areas of the market has been showing relative strength over the past few weeks.
20-Year Lows for the Euro | 5 Charts – LPL Financial Research
In this video, Scott Brown highlights five noteworthy charts to keep an eye on.
Health-Care Stocks Could Do Well During Economic Contraction, Says Renaissance’s Jeff Degraaf – CNBC
In this clip, Jeff deGraaf shares his thoughts on the current market environment and explains why he thinks Health Care will outperform.
15 Reasons Why Investors are So Bearish – SentimenTrader
Jason Goepfert highlights some noteworthy stats that speak to how rare this year has been for Stocks.
Top Tweets
This is the 4th time in 2022 that $SPX has risen 4 days in a row. Last time was end of March. It has not risen 5 days in a row since November. Will get another chance to accomplish that tomorrow. $SPY
— Quantifiable Edges (@QuantifiablEdgs) July 7, 2022
Is the $SPX really advancing on expectations for rate hikes 12 months out or are we seeing the influence of seasonality? Historically-speaking, the 27th week of the year is the second best for this index pic.twitter.com/dYKQRWNDzC
— John Kicklighter (@JohnKicklighter) July 7, 2022
$QQQ $NDX Most indices are near their 50 DMA, a level that it reached during april. Up 4 days in a row, some consolidation-digestion is to be expected before the mkt resumes higher or perhaps lower following its primary downtrend. pic.twitter.com/Z5aqE9RumE
— Victor Riesco, CMT (@Global_Trader) July 7, 2022
Aggressive > Defensive today pic.twitter.com/gg0eHGvFm5
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 7, 2022
Consumer ratio long term look. Stabilization ahead? $XLY $XLP pic.twitter.com/iDV9UKp6AL
— Hoss Bonaventure, CEO (@ATMcharts) July 7, 2022
Russell 1000 Growth relative to Value, vying for attention. pic.twitter.com/FRqvMynllB
— Michael Santoli (@michaelsantoli) July 7, 2022
Still no relative pop from the Travel/Leisure names…$CRUZ $AWAY $TRYP pic.twitter.com/Rl5qOQJZ3f
— Ian McMillan, CMT (@the_chart_life) July 7, 2022
A stronger $DXY is a headwind for $EFA and $EEM pic.twitter.com/EPV4tsOfNl
— Grant Hawkridge (@granthawkridge) July 7, 2022
Copper futures finding support at the prior cycle (2018) highs $HG_F pic.twitter.com/dTnzXttuXI
— Steven Strazza (@sstrazza) July 7, 2022
Today's bounce in oil saved RSI from pushing into oversold conditions. Oil still consolidating within a multi-month rectangle and remains in a bullish regime. Bias still to the upside. That changes to neutral if we break 94. $WTI $USO pic.twitter.com/vYrt1THL1e
— Tarek I. Saab (@FibLines) July 7, 2022
Crude oil prices are down ~20% in the last month and ~10% in the last 10 days. Gasoline prices should continue to trend downward, but those famously go up fast when oil spikes…yet come down slowly when oil falls. It'll take some time. pic.twitter.com/G9z4qWKxup
— Liz Young (@LizYoungStrat) July 7, 2022
Average gasoline price in U.S. has been declining for past 22 days … most recent daily drop was largest since March 2020 pic.twitter.com/A2Vz7sAJMo
— Liz Ann Sonders (@LizAnnSonders) July 7, 2022
You’re all caught up now. Thanks for reading!