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Today’s Summary
Thursday, August 18th, 2022
Indices: Russell 2000 +0.68% | Nasdaq 100 +0.26% | S&P 500 +0.23% | Dow +0.06%
Sectors: 7 of the 11 sectors closed higher. Energy led by a wide margin, gaining +2.69%. Real Estate lagged, dropping -0.68%.
Commodities: Crude Oil futures rose +2.12% to $88.11 per barrel. Gold futures fell -0.25% to $1,772 per ounce.
Currencies: The US Dollar Index rose +0.78%.
Crypto: Bitcoin inched higher by +0.23% to $23,396. Ethereum rose +2.03% to $1,872.
Interest Rates: The US 10-year Treasury yield inched lower to to 2.886%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Very interesting how closely the #Ethereum #Bitcoin ratio tracks the $SPX. Why is this such a good measure of risk on vs. risk off? Note: still going higher…$ETHUSD $BTCUSD pic.twitter.com/DjzKCv8xci
— David Keller, CMT (@DKellerCMT) August 18, 2022
Today’s Chart of the Day was shared by David Keller (@DKellerCMT). From top to bottom you have, Ethereum, the S&P 500, and a ratio of Ethereum vs. Bitcoin. David points out that the Ethereum vs. Bitcoin ratio continues to closely track the S&P 500. Why is this Crypto ratio moving in tandem with the S&P 500?… Who knows for sure, but one could argue that Ethereum is one of the more risky/volatile assets, even more so than Bitcoin. So, if it’s outperforming, we’re probably in an environment where market participants want to take on more risk. Regardless of why these two are moving together, it’s worth paying attention to as long as this relationship exists. It’s especially useful given that Crypto markets are open 24/7, which means we can look at Crypto at night and over the weekends to get an idea of what Stocks might do when they open.
Quote of the Day
“The market pendulum is a punishing mechanism.”
– Frank Cappelleri
Top Links
Bulls Set a New High – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Key Consumer Strength Indicator Investors Should Watch – Schaeffer’s Investment Research
Rocky White examines what the Discretionary vs. Staples ratio ($XLY/$XLP) could tell us about the broader market.
Apple & Utilities are Rallying – Risk On? – PFT Trading
Greg Rieben points out that Apple and Utilities are leading right now.
September Almanac: Only 4 NASDAQ Wins in Last 12 Midterm Septembers – Almanac Trader
Jeff Hirsch takes a look at how the major indices have historically performed in September.
Top Tweets
Daily Mkt Mood: Mixed/Neutral
Small gains for stocks at the end of a choppy day on low volume.
At one point in the morning, $SPX saw smaller trading range than NYE last year.
It seems… traders treading water until JH and Powell.
Stay nimble!
— Abigail Doolittle (@TheChartress) August 18, 2022
If June 2022 was a cyclical bottom, as increasingly evidenced, it’s not out of character with secular trend since March 2009. pic.twitter.com/oGEWAFdnbd
— Mark Ungewitter (@mark_ungewitter) August 18, 2022
For first time since July 2021, every member in S&P 500 Utilities sector is trading above 200d moving average pic.twitter.com/w1hBGqw2hj
— Liz Ann Sonders (@LizAnnSonders) August 18, 2022
Hopefully nobody's bull case is predicated on "interest rates have stopped going up" because that really wouldn't make sense pic.twitter.com/B5lrUSAhtN
— Scott Brown, CMT (@scottcharts) August 18, 2022
That USD though…
It continues to trend higher and put pressure on the recent rally in stocks.#USD $DXY pic.twitter.com/ANaSsE5rpY
— Greg Rieben (@gregrieben) August 18, 2022
Another market testing it's “Line in the Sand” is natural gas. Is it about to soar? Or collapse? Either way, a big move is likely close at hand. pic.twitter.com/j4mzNcSe0f
— Jay Kaeppel (@jaykaeppel) August 18, 2022
Crack Spread continues to rise, historically been bullish for oil prices. pic.twitter.com/Vi04YXBWtd
— Andrew Thrasher, CMT (@AndrewThrasher) August 18, 2022
$MSOS Marijuana vs. the 50-Day MA has been a losing battle for nearly 18 months.
The difference this time – so far – is that its 14-D RSI hasn't dropped < 40 in 26 trading sessions (starting 7/14/22).
That's the longest streak since before it topped in February'21. pic.twitter.com/3xs2263Haf
— Frank Cappelleri (@FrankCappelleri) August 18, 2022
$SPX ends the day with the third smallest daily range of the year and its lowest volume of 2022 thus far. #summer
— John Kicklighter (@JohnKicklighter) August 18, 2022
You’re all caught up now. Thanks for reading!