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Today’s Summary
Tuesday, September 14th, 2021
Indices: US Stocks closed lower in today’s session with the Dow slipping 292 points or 0.84%. The S&P 500 and Nasdaq fell, 0.57% and 0.45%, respectively. The Russell 2000 underperformed, dropping 1.37%.
Sectors: All 11 sectors closed lower. Health Care led, ticking lower by just 0.02%. Energy lagged, falling 1.44%.
Commodities: Crude Oil futures were flat and continue to trade around $70.46 per barrel. Gold futures moved higher by 0.71% to $1,807 per ounce.
Currencies: The US Dollar Index ticked higher by just 0.05%.
Interest Rates: The 10-year US Treasury yield dropped to 1.284%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPX $SPY
support being tested… 50sma as well pic.twitter.com/Vivp9LVgDH— Keith Kern (@kkernttb) September 14, 2021
Today’s Chart of the Day was shared by Keith Kern (@kkernttb). It’s a daily candlestick chart of the S&P 500 over the past year, along with the 8, 50, and 200-day moving averages. Kieth points out that the world’s most important index is currently testing its 50-day moving average and its uptrend line that has been in place for the majority the year. The Dow has already broken its 50-day and its respective uptrend line. If the S&P 500 follows suit, it would be an indication that further downside is likely. As we’ve noted, weakness in September-October is quite normal. Keep an eye on how this crucial test plays out in the remainder of the week!
Quote of the Day
“The more volatile it gets,
the more calm I get.”
– Steve Cohen
Top Links
Leaders Pullback from Record Highs, But Trends Remain in Place – Potomac Fund Management
Dan Russo shares his weekly sector analysis.
Leveraged ETFs in 2021 – Bespoke
Bespoke examines how several popular leveraged ETFs have performed this year.
What Do Options Traders Know? – SentimenTrader
Jason Goepfert takes a look at a divergence between the $VIX and realized volatility.
Crude Oil Futures Could Move 10 Percent Higher on Breakout – See It Market
Guy Cerundolo points out that Crude Oil is breaking out of its recent downtrend.
Brian Shannon — Swing Trading Stocks Using Multiple Time-Frames – Smarter Trader Podcast
In this podcast, Evan Medeiros interviews Brian Shannon about his trading process and more.
Top Tweets
If I told you in August that the S&P 500 would drop 6 out of 7 days sometime this month, you’d probably think the market was about to fall apart.
Yet we’re still about 2% away from record highs.
?
— Callie Cox (@callieabost) September 14, 2021
6 straight trading days with an open that's greater than the close?
Only the 22nd time we've seen that since 1990 – which I found very surprising (someone check my work) – but the S&P 500's forward 4 day return is then 18-3 for +1.21% on average.
— Steve Deppe, CMT (@SJD10304) September 14, 2021
50dma
??? pic.twitter.com/By14xJviXw
— Callum Thomas (@Callum_Thomas) September 14, 2021
'Tis the season when investors worry about a correction. It’s true that September-October has brought many of the worst, but this chart shows that, on average, this window is more often just a bump in the road in the absence of a larger bearish narrative. pic.twitter.com/4O6f84P18t
— Jurrien Timmer (@TimmerFidelity) September 14, 2021
When $VIX ROC(5) Crosses above 30, it has been a pretty consistent short term dip buy signal $SPY $IWM $QQQ pic.twitter.com/4y8bqpulCN
— Rolando Santos (@TKPTrader) September 14, 2021
Semiconductor leadership pic.twitter.com/nK59mTeDgc
— Strategas (@StrategasRP) September 14, 2021
Sector weights crucial to consider in analysis of “the market” … Tech & Comm Serv (generally considered growth) command 40% of S&P 500’s market cap vs. 14% for Financials & Energy (generally considered value) pic.twitter.com/AP3sJDsV7r
— Liz Ann Sonders (@LizAnnSonders) September 14, 2021
Cyclical sectors (XLF, XLI, XLB, XLE) are stuck in the mud.
They've been relative laggards for six months or more and have been flat to down on an absolute basis over the past three months. pic.twitter.com/CVvOg2o28S
— Willie Delwiche (@WillieDelwiche) September 14, 2021
Being good on Wall St is less about being right (armatures/media) and more about identifying exploitable mismatches (billionaires). As growth expectations contract (not from us, but others) we would note that cyclicals tend to outperform defensive names as we get into the 4Q. pic.twitter.com/xAcqjODztt
— RenMac: Renaissance Macro Research (@RenMacLLC) September 14, 2021
Do we finally have a resolution? $TLT $TYX pic.twitter.com/uBlWklBgJF
— Ian McMillan, CMT (@the_chart_life) September 14, 2021
My favorite chart in a while
I call it: good luck at macro pic.twitter.com/3y5bcEsOXs
— Ben Carlson (@awealthofcs) September 14, 2021
Commodity ETF $DBC testing new all-time highs this week just above 19.50. Also interested to see if RSI can break above the 60 level, which would put it back in the bull market range. pic.twitter.com/MF3cIwzRfk
— David Keller, CMT (@DKellerCMT) September 14, 2021
US #natgas up huge again today. It hasn't been this high in September since 2008. $UNG @enelyst_ pic.twitter.com/0Tg38aIdzk
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) September 14, 2021
Commodity prices over the last year…
Natural Gas: +126%
Heating Oil: +97%
Gasoline: +95%
WTI Crude: +89%
Brent Crude +86%
Aluminum: +61%
Sugar: +61%
Coffee: +52%
Copper: +42%
Corn: +39%
Cotton: +39%
Soybeans: +29%
Wheat: +26%
Lumber: -2%
Gold: -9%
Palladium: -11%
Silver: -13%— Charlie Bilello (@charliebilello) September 14, 2021
You’re all caught up now. Thanks for reading!