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Today’s Summary
Friday, July 8th, 2022
Indices: Nasdaq 100 +0.14% | Russell 2000 -0.01% | S&P 500 -0.08% | Dow -0.15%
Sectors: 3 of the 11 Sectors closed higher. Health Care led, gaining +0.30%. Materials lagged, falling -0.98%.
Commodities: Crude Oil futures rose +2.01% to $104.79 per barrel. Gold futures inched higher by +0.15% to $1,742 per ounce.
Currencies: The US Dollar Index fell -0.13%.
Crypto: Bitcoin inched lower by -0.27% to $21,584. Ethereum fell -1.94% to $1,213.
Interest Rates: The US 10-year Treasury yield rose to 3.084%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Pretty crazy so only the 3rd time in history the 10 Week MA of AAII bears crossed 50. What I find behaviorally fascinating is outside of the GFC the other occurrence came a few years after the '87 crash. $SPY pic.twitter.com/QPRxj5TVhl
— Arun S. Chopra CFA CMT? (@FusionptCapital) July 8, 2022
Today’s Chart of the Day was shared by Arun Chopra (@FusionptCapital). It’s a chart of the Wilshire 5000 since 1985, with a 10-week moving average of the percentage of bears from the AAII Sentiment Survey. Sentiment has been bearish all year, but as Arun points out, it’s reaching an extreme that has only been seen two other times in the past few decades – 1991 & 2008. In a comment to The Chart Report, Arun said “What is interesting about the ’91 spike in sentiment is it came a few years after a large crash (’87), much like w are seeing post the Covid crash.”
Quote of the Day
“If everyone is thinking alike,
then somebody isn’t thinking.”
– George S. Patton
Trendlines Over Headlines
In this week’s episode of Trendlines Over Headlines, Ian McMillan joins us to share his thoughts on the markets. Ian is a Technical Analyst and Portfolio Manager at Adaptiv. He weighs in on the S&P 500, Healthcare, Solar Stocks, Crypto, and more!
Top Links
Five Friday Charts – Research by Potomac
Dan Russo highlights five noteworthy charts to keep an eye on in the near term.
What Happens if FAANGs Break Out? – StockCharts.com
David Keller points out that FAANG stocks are coiling up for a large move.
Buying a Bounce in Natural Gas – All Star Charts
Ian Culley takes a look at a potential rebound in Natural Gas after a sharp pullback recently.
Fill The Gap Episode Nineteen, with Katie Stockton, CMT – CMT Association
In this podcast, Tyler Wood and David Lundgren sit down with respected technical analyst, Katie Stockton.
Top Tweets
$SPY $QQQ $IWM $DIA nobody above last weeks highs pic.twitter.com/OcrX97AUnd
— Stacey.A.Lee (@BBaxter2020) July 8, 2022
What if Small Caps are the snowball for this market?
Buyers are stepping in to send $IWM bouncing off the '18 & '20 highs
If that move continues and smalls start to lead, the appetite for risk picks up, the bulls start charging elsewhere, the snowball gets rolling…
— Grayson Roze (@GraysonRoze) July 7, 2022
If you believe in moving averages, this is a key juncture. $ARKK pic.twitter.com/OgKILarQNU
— Walter Deemer (@WalterDeemer) July 8, 2022
But someone forgot to tell vol-of-vol ($VVIX) that we should be scared. It hasn't been this low since the run-up to COVID. @Options pic.twitter.com/1b5j8eX3ju
— Jim Carroll (@vixologist) July 8, 2022
Up until mid-June, commodities (orange) were outpacing equities (blue) by a significant degree, but have plunged from peak as stocks have rebounded slightly
[Past performance is no guarantee of future results] pic.twitter.com/tN9SXnaSp5— Liz Ann Sonders (@LizAnnSonders) July 8, 2022
This cycle isn't anything new…
Bonds roll over… then stocks… and then commodities…
and hey look… Bonds have now found a bottom… stocks will soon be next then commodities… and the cycle goes on…
this is 101 intermarket analysis…$AGG $SPY $DBC pic.twitter.com/dKASZj3k2w
— Grant Hawkridge (@granthawkridge) July 8, 2022
Gasoline futures slide below a critical shelf of former highs ~3.40. $RB_F pic.twitter.com/6UdZDgtzTj
— Ian Culley (@IanCulley) July 7, 2022
Both Crude Oil & Natural Gas are still holding above their 200-day Moving Averages. Until we see major breaks of key price levels the calls for peak energy seem a little premature. pic.twitter.com/GUkb8ZojAU
— Andrew Thrasher, CMT (@AndrewThrasher) July 8, 2022
An extreme example of what's been going on with commodity stocks since April…$CENX was at fresh highs earlier this year, failed hard, and is now in a ~80% drawdown ? pic.twitter.com/KBImUoD0mH
— Steven Strazza (@sstrazza) July 8, 2022
best week for Bitcoin so far since October pic.twitter.com/fn5Bpkz6eT
— Katie Greifeld (@kgreifeld) July 8, 2022
You’re all caught up now. Thanks for reading!