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Today’s Summary
Thursday, August 25th, 2022
Indices: Nasdaq 100 +1.75% | Russell 2000 +1.52% | S&P 500 +1.41% | Dow +0.98%
Sectors: All 11 sectors closed higher for the second day in a row. Materials led, gaining +2.27%. Consumer Staples lagged but still rose +0.46%.
Commodities: Crude Oil futures fell -2.50% to $92.52 per barrel. Gold futures rose +0.56%, to $1,771 per ounce.
Currencies: The US Dollar Index fell -0.17%.
Crypto: Bitcoin rose +0.80% $21,544. Ethereum gained +2.03% to $1,691.
Interest Rates: The US 10-year Treasury yield fell to 3.030%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
A bullish scenario for crude oil begins by reclaiming key former support level of 94.50. Notice that during the recent sell-off in risk assets, the 14-period RSI never hit oversold conditions. pic.twitter.com/31LynVIx34
— Alfonso Depablos (@AlfCharts) August 25, 2022
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It’s a daily candlestick chart of Crude Oil futures over the past year. Crude Oil is back above a key level around $94.50. It broke below it earlier this month, but that move is beginning to look like a failed breakdown. As we know, failed breakdowns often lead to sharp moves higher. Alfonso points out that RSI never even reached oversold conditions, despite ‘correcting’ 30% this Summer. The inability to reach oversold conditions speaks to the strength of this trend. This is bad news for consumers at the pump, but good news for Energy stocks.
Quote of the Day
“When you really believe that trading is simply a probability game, concepts like right or wrong or win or lose no longer have the same significance.”
– Mark Douglas
Top Links
One Big Clue The Lows For The Year Could Be In – Carson Group
Ryan Detrick shares some insightful stats that suggest the lows could be in for 2022.
The State of the Bounce – The Irrelevant Investor
Michael Batnick examines the rebound off the June lows.
Sentiment Slide – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
What is Ratio Analysis, and How Can Investment Managers Apply It? – Research by Potomac
Drew Wells discusses the value of ratio analysis and relative strength.
Top Tweets
Final heat map of the S&P 500's performance from today pic.twitter.com/dz0WHsAHwb
— Stock Market News (@StockMKTNewz) August 25, 2022
Dow zooms to the close. pic.twitter.com/WFdVwmTf6A
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) August 25, 2022
$SPX over the 20-sma, just below a key 4200 level. 50-sma turning up. A strong move over 4200 would help, coming off some oversold market internals. pic.twitter.com/F28Ciaxvbi
— Larry Tentarelli, Blue Chip Daily (@LMT978) August 25, 2022
So we are in the sweet spot for midterm years to struggle.
In fact, your avg midterm year is actually down as of October 5th. Bet most investors didn't know that.
Good news, the S&P 500 finishes up 6.0% on avg, so big year-end rallies are common. pic.twitter.com/uN3kujHBJ9
— Ryan Detrick, CMT (@RyanDetrick) August 25, 2022
S&P 500 Energy sector has had volatile year—rising 65% at its strongest point, falling 26% from peak, then rebounding by 23% … move higher has been strong as 100% of members are trading above their 200d moving average
[Past performance is no guarantee of future results] pic.twitter.com/3C3fCTPkt9— Liz Ann Sonders (@LizAnnSonders) August 25, 2022
Fresh 52-week highs for industrials $XLI relative to the broader market ? pic.twitter.com/80qehAYyxl
— Steven Strazza (@sstrazza) August 25, 2022
How this month finishes will be very telling for biotech. $IBB pic.twitter.com/v5Lp1LhW9c
— Brian G (@alphacharts) August 25, 2022
From failed moves come fast moves. Auto retail with some ugly action over the past couple days pic.twitter.com/7SXWJ8wR3w
— Austin Harrison, CFA, CMT (@meanstoatrend) August 25, 2022
With the exception of a false start in early 2016, above 5.2% has been an incredibly reliable line in the sand for European HY spreads. Despite tightening by more than 100 bps since July 6, we are still above it pic.twitter.com/cfSrTHk4Ws
— Scott Brown, CMT (@scottcharts) August 25, 2022
$CF Now that is a well-fertilized breakout pic.twitter.com/NxCf9k11i8
— RxTrader (@letsinvestnow) August 25, 2022
You’re all caught up now. Thanks for reading!