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Today’s Summary
Wednesday, October 12th, 2022
Indices: Nasdaq 100 -0.05% | Dow -0.10% | Russell 2000 -0.30% | S&P 500 -0.33%
Sectors: 3 of the 11 sectors closed higher. Energy led, gaining +0.81%. Utilities lagged dropping -3.33%.
Commodities: Crude Oil futures fell -2.33% to $87.27 per barrel. Gold futures fell -0.50% to $1,678 per ounce.
Currencies: The US Dollar Index was essentially flat (-0.03%).
Crypto: Bitcoin rose +0.66% to $19,184. Ethereum gained +1.70% to $1,302.
Interest Rates: The US 10-year Treasury yield fell to 3.896%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Financials are back to the scene of the crime as we kick off the Q3 earnings season. This was the place of the 2007 highs, the 2018 highs, the 2020 highs, and this summer's lows. Hard to think of many more important charts than this one pic.twitter.com/eNtvdOvqIp
— Austin Harrison, CFA, CMT (@meanstoatrend) October 12, 2022
Today’s Chart of the Day was shared by Austin Harrison (@meanstoatrend). It’s a chart of the Financial Sector ETF, $XLF, over the past three years. Austin points out that Financials are testing a crucial level around $30. This level has been a key turning point for $XLF over the years. It acted as resistance twice in 2007, then again in 2018, then again in 2020 prior to the Covid crash. We finally broke above it in early 2021 and have traded above it ever since. If it fails to hold $30 here, 2021 is going to look like one giant failed breakout for Financials. This is by no means the largest sector, but it’s certainly an important one. Will the bulls defend this crucial level?… Stay tuned!
Quote of the Day
“Smart people learn from everything and everyone,
average people from their experiences,
stupid people already have all the answers.”
– Socrates
Top Links
$NDX Performance After 5 Down Days and a 150-Day Low – Quantifiable Edges
Rob Hanna takes a look at how the Nasdaq has performed after a 5-day losing streak and a new 150-day low.
Stocks Need to Hit ‘New Highs’ to Convey ‘Any Sort of Confidence’ in Financial Stability: Willie Delwiche – Fox Business
In this clip, Willie Delwiche shares his technical perspective on the current market environment.
Which ETF is a Dependable Stock Market Indicator? – Schaeffer’s Investment Research
Rocky White examines the Semiconductor ETF’s reputation as a leading indicator ($SMH).
Are Growth Stocks About to Experience More Selling? – Kimble Charting Solutions
Chris Kimble points out that the Growth vs. Value ratio is testing a long-term uptrend line.
So Now it’s a “Debasement Hedge” – All Star Charts
JC Parets explains that Bitcoin continues to trade alongside traditional financial markets.
Top Tweets
$SPY with its 6th straight losing session and a close at a new 52-week low ? pic.twitter.com/tgwcJr2JXL
— CEO Technician (@CEOTechnician) October 12, 2022
FAAMG names continue to break down, making a new relative performance low below the prior summer lows. pic.twitter.com/CH9Ul2dZLu
— Andrew Thrasher, CMT (@AndrewThrasher) October 12, 2022
Investors get super excited when things like hotels, cruise lines, airlines jump 5-10% on a single day, as it's some declaration by the market that everything is "back to normal." Let's remember that this group is still very much in a downtrend. pic.twitter.com/32bh0TcKSd
— David Keller, CMT (@DKellerCMT) October 12, 2022
$XLU The crash of the "safe" sector utilities is impressive. pic.twitter.com/Eojg1nqCMg
— Victor Riesco, CMT (@Global_Trader) October 12, 2022
The Utilities sector is now down 20.5% over the last month. March 2020, October 2008, late 2002, and the 1930s are the only other periods that saw one-month crashes of 20%+. pic.twitter.com/QZd1NpVSCF
— Bespoke (@bespokeinvest) October 12, 2022
$XLF: the 30 zone seems important. pic.twitter.com/YvJZ3K7Otq
— Frank Cappelleri (@FrankCappelleri) October 12, 2022
Financials have been improving from a relative standpoint since the beginning of August. Absolute trend still down and at a key level here. $XLF pic.twitter.com/lsrtuKRYgU
— David Rath (@DJwrath) October 12, 2022
why are regional banks breaking out to new 6-month highs relative to S&Ps? I was told the market was going to crash pic.twitter.com/QmFvefHTD1
— J.C. Parets (@allstarcharts) October 12, 2022
The US bond market is on pace for its worst year in history with a loss of 15.2%, which is 5x larger than the previous worst year back in 1994 (-2.9%). pic.twitter.com/GyjfsG3W6a
— Charlie Bilello (@charliebilello) October 12, 2022
Bitcoin: is this thing on? pic.twitter.com/4xJUnfEN6y
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 12, 2022
September CPI comes out tomorrow.
The S&P 500 has declined for 7 out of the 8 CPI releases this year (including a 4% drop for the last release, casual).
Bitcoin has dropped for 6 of 8. pic.twitter.com/3GvfLcNSTR
— Callie Cox (@callieabost) October 12, 2022
You’re all caught up now. Thanks for reading!