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Today’s Summary
Tuesday, September 27th, 2022
Indices: Russell 2000 +0.40% | Nasdaq 100 +0.16% | S&P 500 -0.21% | Dow -0.43%
Sectors: 4 of the 11 sectors closed higher. Energy led, gaining +1.12%. Consumer Staples lagged, falling -1.73%.
Commodities: Crude Oil futures rose +1.63% to $77.96 per barrel. Gold futures inched higher by +0.19% to $1,637 per ounce.
Currencies: The US Dollar Index rose +0.07% to a fresh 20-year high.
Crypto: Bitcoin fell -1.13% to $19,008. Ethereum dropped -1.29% to $1,319.
Interest Rates: The US 10-year Treasury yield continued higher to 3.947% – its highest in more than a decade.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Would you buy this breakout?
If so, you should be bearish on stocks.
This flipped look at the S&P 500 $SPX is a great example of how inverted charts can help keep you honest and objective. If you love it upside down, you gotta hate it right side up. Simple as that. pic.twitter.com/h2fJFR9foq
— Grayson Roze (@GraysonRoze) September 27, 2022
Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze). This chart looks pretty bullish, right? Price is above upward sloping 50-day & 200-day moving averages and it’s breaking out of a three-month base. Unfortunately for the bulls, this is an inverted chart of the S&P 500, so what looks bullish is actually bearish. It might seem silly to look at inverted charts, but it’s actually a valuable exercise, as it forces you to remove any bullish or bearish biases that you might have. As Grayson notes, “If you love it upside down, you gotta hate it right side up.”
Quote of the Day
“Interest has been so low for so long a time that to many people a rising rate produces a sort of alarm, and it is natural to expect a considerable lapse of time before this will disappear under the new conditions.”
– Charles H. Dow (July 24, 1899)
Top Links
Stocks and Sectors with the Biggest Declines – Bespoke
Bespoke takes a look at the most beaten-down stocks and sectors within the Russell 3000.
October Has Been a Midterm Bear Killer – Almanac Trader
Seasonality expert, Jeff Hirsh points out that 12 post-WWII bear markets have ended in October.
The Deep Dive: King Dollar – Beath the Bench
Scott Brown looks at the relentless rise in the US Dollar Index.
Washout – The Irrelevant Investor
Michael Batnick examines the signs of breadth washout in the Nasdaq 100.
Bloomberg Crypto Full Show – Bloomberg
Katie Stockton and Sam Bankman-Fried share their thoughts on the Crypto markets.
Top Tweets
Final heat map of the S&P 500's performance from today pic.twitter.com/HyhRVyDbXp
— Stock Market News – Evan (@StockMKTNewz) September 27, 2022
#NQ_F, 1h
While everyone is posting charts showing how oversold the market is, the market continues to drop…
Bulls will be in major trouble if NQ drops below 11,000. pic.twitter.com/hcmkd5CVKS
— Yuriy Matso (@yuriymatso) September 27, 2022
The June pivot lows coming into play for the smaller US indexes.$MDY $IWM $IWC pic.twitter.com/UBcdNgTtgY
— Alfonso Depablos (@AlfCharts) September 27, 2022
Seeing some mentions of a crash pattern in the media. They have a point.
The S&P 500 dropped at least 0.75% for 5 straight days to a 52-week low. Then dropped again.
That only happened during the meltdowns in 1932, 1974, and 2008…and today. pic.twitter.com/bL8CINIdgr
— BullSnitch (@BullSnitch) September 27, 2022
It's hard to be bullish energy when these are breaking down. $CL_F $RB_F $HO_F pic.twitter.com/RcCMTqOSFD
— Ian Culley (@IanCulley) September 27, 2022
The Market Generals are finally falling… the Utilities!
Interestingly, the $XLU drawdown is getting close to same % drawdown as June… pic.twitter.com/Lt9ZNKS2X8
— Christian Fromhertz ?? (@cfromhertz) September 27, 2022
$XLF chart looks a little bit "toppy" here.
If (and it's still an IF) we lose the financials at these levels, it's a long road back, it's probably just how it is. $JPM $GS $WFC $BAC https://t.co/I1gTYxEBzW pic.twitter.com/lV1ACtRwOC— Sam McCallum (@Honeystocks1) September 27, 2022
Here's our range in the $VIX. If we can close above 38 we should see some fireworks. pic.twitter.com/U7mGKCgQ0z
— Brian Lund (@bclund) September 27, 2022
As S&P 500 (blue) has made lower lows this year, VIX (orange) has made lower highs
[Past performance is no guarantee of future results] pic.twitter.com/TNvgeMDDBp— Liz Ann Sonders (@LizAnnSonders) September 27, 2022
Look at the increasing slope. You could say "parabolic". $DXY #USD $UUP pic.twitter.com/JZ6jhE98KE
— Greg Rieben (@gregrieben) September 27, 2022
High Yield spreads moving past their July highs… pic.twitter.com/cc04pIw8rd
— Ian McMillan, CMT (@the_chart_life) September 27, 2022
Our final recession signal triggered…
Conference Board’s LEI is down 6 months in a row and flipped negative on a YoY basis last week. This is a high-fidelity recession indicator and aligns with what our other leading indicators are signaling… 1/ pic.twitter.com/zhl7xCmPFS
— Alexander? (@MacroOps) September 27, 2022
I've opened a new position.
Fetal. pic.twitter.com/OSIKxfVGhp
— Eddy Elfenbein (@EddyElfenbein) September 27, 2022
You’re all caught up now. Thanks for reading!