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Today’s Summary
Thursday, September 9th, 2021
Indices: US Stocks continued lower in today’s session with the Dow falling 152 points or 0.43%. The S&P 500 and Nasdaq slipped 0.46% and 0.25%, respectively. The Russell 2000 outperformed, closing flat (0.03%).
Sectors: 3 of the 11 sectors closed higher. Financials led, gaining 0.29%. Real Estate lagged, dropping 2.12%.
Commodities: Crude Oil futures fell 1.67% to $68.14 per barrel. Gold futures rose 0.36% to $1,800 per ounce.
Currencies: The US Dollar Index moved lower by 0.20%.
Interest Rates: The 10-year US Treasury yield dropped to 1.302%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The S&P 500's maximum drawdown this year is only 4.2% (closing basis). Going back to 1928 only 3 years have had a smoother ride than 2021: 1964 (-3.5%), 1995 (-2.5%), and 2017 (-2.8%). $SPX pic.twitter.com/zYivZiqy3N
— Charlie Bilello (@charliebilello) September 9, 2021
Today’s Chart of the Day was shared by Charlie Bilello (@charliebilello). The table shows the maximum drawdown for the S&P 500 in each year going back to 1928. The S&P 500 fell for the fourth consecutive day today, and yet we’re less than 1% off of an all-time high. This year has been a steady bleed higher with very little downside volatility. In an average year, the S&P 500 experiences about three pullbacks of 5% or more. The largest decline we’ve seen this year has been 4.2% on a closing basis. Charlie points out that only three other years have seen a smoother ride than 2021 – 1964, 1995, and 2017. While this unusual environment is an investor’s dream, it’s extremely important that we don’t get complacent, and forget about downside risk.
Quote of the Day
“Mostly it is loss which teaches us about the worth of things.”
– Arthur Schopenhauer
Top Links
Breadth Metrics Weaken as the S&P 500 Hits a Three-Day Losing Streak – Potomac Fund Management
Dan Russo points out that several breadth metrics are starting to roll over.
Largest 25 Stocks in the S&P 500, Now Vs. 10 Years Ago – Bespoke
Bespoke looks at the composition of the S&P 500 over the past decade.
A Breadth Thrust That Acts More Like a Blow-Off – SentimenTrader
Jason Goepfert points to a potentially bearish signal for stocks.
Reminders From Crypto’s Crash – All Star Charts
The team at All Star Charts highlights relative strength within the Crypto market.
September Seasonal Pattern: Weakness After Mid-Month – Almanac Trader
Seasonality expert, Jeff Hirsch takes a look at how Stocks have historically performed throughout September.
Top Tweets
History doesnt always repeat but…
When #SPX500 has not declined 5% on a closing basis through August…
Sept-Dec positive 100% of occurrences since 1928.?
Doesnt mean wont have 5% correction in Sept-Dec period. Buying that dip has always been right?
#QQQ #Risk $SPX $SPY pic.twitter.com/D7QMUsFZee— Seth Golden (@SethCL) September 9, 2021
Would you believe this bull market is actually young?
It has been anything but average so far, but the average bull market lasts about 5 years. This one isn't even 18 months old yet. pic.twitter.com/tZmTMQvJKc
— Ryan Detrick, CMT (@RyanDetrick) September 9, 2021
$SPX – seeing a 21 trading day cycle of lows over the last four/five months. The next low is scheduled for ~9/17. pic.twitter.com/yD1whHNc1u
— Rob Moreno (@rightviewrob) September 9, 2021
green support area just refuses to throw in the towel $NQ_F pic.twitter.com/6o59wN8ymM
— BostonCharts (@bostonchaahhts) September 9, 2021
#RUT_F, 1d
Russell has been in a consolidation mode for the last 9 months. This consolidation has established very clear pivots: 2350 and 2100.
Just follow the price to know what happens next. pic.twitter.com/LNVWFaTe2P
— Yuriy Matso (@yuriymatso) September 9, 2021
Banks of all sizes are flirting with their 200-day $KBE $KRE $QABA pic.twitter.com/F6Y0WnEE12
— Grant Hawkridge (@granthawkridge) September 9, 2021
$KRE Regional Banks flirting with a significant level. Watch out below ~64. pic.twitter.com/NC3MstgSlN
— Pratyush Tulsian (@PrattyCharts) September 9, 2021
Meanwhile, happy 52wk highs $EWJ $NIKKEI pic.twitter.com/zdDI4ShS0j
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) September 9, 2021
Iron Ore futures continue to retreat from recent highs. Does it have implications for industrial metals? #Commodities pic.twitter.com/euTcnIqgaK
— Ian Culley (@IanCulley) September 9, 2021
Everyone has a foot out the door.
Bob Farrell's Rule #9:
"When all the experts and forecasts agree – something else is going to happen."
Let's look back in a few months to see what happened.? pic.twitter.com/KbbzRDwC6s
— Macro Charts (@MacroCharts) September 9, 2021
You’re all caught up now. Thanks for reading!