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Today’s Summary
Monday, September 19th, 2022
Indices: Russell 2000 +0.81% | Nasdaq 100 +0.77% | S&P 500 +0.69% | Dow +0.64%
Sectors: 8 of the 11 sectors closed higher. Consumer Discretionary led, gaining +1.20%. Real Estate lagged, falling -1.09%.
Commodities: Crude Oil futures rose +0.71% to $85.36 per barrel. Gold futures fell -0.31% to $1,678 per ounce.
Currencies: The US Dollar Index inched lower by -0.05%.
Crypto: Bitcoin rose +0.44% to $19,505. Ethereum gained +3.37% to $1,380.
Interest Rates: The US 10-year Treasury yield rose to its highest level since 2011 at 3.492%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$JNK High Yield Bonds is a chart I will be paying attention to this week. Treasuries have been making new yearly lows but not high yield bonds. A break of the important $90 support will be a big "risk-off" signal and vice-versa if it holds. pic.twitter.com/QGZzVuBeiF
— Victor Riesco, CMT (@Global_Trader) September 19, 2022
Today’s Chart of the Day was shared by Victor Riesco (@Global_Trader). It’s a daily candlestick chart of the High Yield Bond ETF, $JNK, over the past year. High Yield or ‘Junk’ Bonds have been acting as a leading indicator for Stocks all year. Victor points out that while Treasuries have violated their June lows, $JNK is refusing to do the same. This is a glimmer of hope for the bulls, but the line in the sand is clear. If it eventually breaks support (around $90), it would be a big red flag for the broader market. Either way, this will be an important one to watch this week.
Quote of the Day
“Listen to what the market is saying about others, not what others are saying about the market.”
– Richard Wyckoff
Top Links
5 Charts to Pay Close Attention to This Week – PFT Trading
Greg Rieben highlights five key charts to watch this week.
A Growth Problem for US Stocks – Means to a Trend
Austin Harrison looks at the tug of war between Growth and Value.
Monday Morning Playbook: Week of September 19 – Beat the Bench
Scott Brown lays out some important technical developments to keep an eye on this week.
Silver Divergence. Wait, What? – All Star Charts
JC Parets points out that Silver is diverging from Gold.
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Top Tweets
Final heat map of the S&P 500's performance from today pic.twitter.com/5ktwtWLKCk
— Stock Market News – Evan (@StockMKTNewz) September 19, 2022
Bullish engulfing candlestick on $SPX daily.
Right where you'd like to see it…?
Now for some follow through… pic.twitter.com/ekGnF7wdGm
— Shane C. Murphy (@murphycharts) September 19, 2022
#ES_F, daily
Two pivots. pic.twitter.com/DGs89mJG4W
— Yuriy Matso (@yuriymatso) September 19, 2022
The only years with higher volatility in stocks at this point than 2022 (178 trading days):
-1930s (Great Depression, World War II)
-2002 (Dot-Com Crash)
-2009 (Global Financial Crisis)
-2020 (Covid Crash) pic.twitter.com/b0Rmd4Ul9H— Charlie Bilello (@charliebilello) September 19, 2022
The S&P has now clocked 110 consecutive trading days below its 200 SMA. This is the longest streak since 2008-09 and 2000-02.
Prior weak periods since 2010 turned out to be pullbacks in a longer-term uptrend…but this was the QE/Fed put era. Current decline is more serious pic.twitter.com/98oxz5T3nd
— Simon Ree (@simon_ree) September 19, 2022
Sentiment continues to be the best feature of this market (for bulls). Friday's equity put/call ratio $SPX got thru our threshold level, matched only by the levels seen at the June lows. Momentum and trends are not supportive, but positioning appears to be. pic.twitter.com/rQkREPem7A
— RenMac: Renaissance Macro Research (@RenMacLLC) September 19, 2022
$DXY — Keeping an eye on the DXY …. (intersection of parallel channels.) pic.twitter.com/CTd2o8p8vy
— Nautilus Research (@NautilusCap) September 19, 2022
Bitcoin on the edge $BTC pic.twitter.com/ziO9G5fsP1
— David Rath (@DJwrath) September 19, 2022
Watch out for long-duration assets. $TLT $BTC pic.twitter.com/pd9DdLfBBL
— Ian Culley (@IanCulley) September 19, 2022
One year treasury yields have gone from 0.07% to 4% in one year
I would almost be more surprised if the Fed doesn't break something in the coming months/years pic.twitter.com/T01fNvOGhf
— Ben Carlson (@awealthofcs) September 19, 2022
You’re all caught up now. Thanks for reading!