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Today’s Summary
Friday, October 14th, 2022
Indices: Dow -1.34% | S&P 500 -2.37% | Russell 2000 -2.66% | Nasdaq 100 -3.10%
Sectors: All 11 sectors closed lower. Health Care led, but still fell -0.67%. Consumer Discretionary lagged dropping -3.74%.
Commodities: Crude Oil futures moved lower by -3.93% to $89.11 per barrel. Gold futures dropped -1.68% $1,649 per ounce.
Currencies: The US Dollar Index rose +0.75%.
Crypto: Bitcoin fell -1.01% to $19,181. Ethereum rose +0.72% to $1,297.
Interest Rates: The US 10-year Treasury yield rose to 4.022% – its highest since 2008.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
TGIF?
Maybe not, as the S&P 500 has been very weak on this day lately.
Down 8 of the past 10 weeks, showing no one wants to hold over the weekend.
Also, down 4 in a row as well. Hasn't been down 5 Fridays in a row since 6 in a row in March/April 2017. pic.twitter.com/WExsNo1ZzY
— Ryan Detrick, CMT (@RyanDetrick) October 14, 2022
Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick). The S&P 500 ended the week on a sour note, erasing about half of yesterday’s historic reversal. Ryan points out that the S&P 500 has been habitually weak on Fridays recently. Including today, the index has closed lower on Friday for 5 consecutive weeks now, and 9 of the past 11. Not to mention, the past 4 Fridays have all lost more than 1%! There’s nothing predictive about this stat, but it is characteristic of a bear market, and it’s a sign of risk aversion. Clearly, nobody wants to be long heading into the weekends this year.
Quote of the Day
“You know you’re doing what you love when Sunday nights feel the same as Friday nights.”
– Donny Deutsch
Trendlines > Headlines
Don’t miss the latest episode of Trendlines over Headlines! In this week’s episode, Frank Cappelleri of CappThesis joins us to make sense of this wild market environment. He shares his thoughts on the S&P 500, Interest Rates, the US Dollar, and more!
Top Links
Bad News is Good News – The Irrelevant Investor
Michael Batnick shares some thoughts on the current market environment.
Strong Sector Rotation to Financials, But Will it be Enough to Turn the Market Back Up? – StockCharts
Julius de Kempenaer points out that Financials are beginning to show relative strength.
Most Risk Gauges are Not Breaking Down – Research by Potomac
Dan Russo analyzes several key risk ratios and what they could be suggesting about the broader market.
The Good, The Bad, and the Ugly – All Star Charts
Ian Culley gives an update on Commodities.
Top Tweets
$SPY Weekly performance is a mixed bag.
Anything in particular stand out to you? ? pic.twitter.com/sodTTBIlhO— TrendSpider (@TrendSpider) October 14, 2022
Today was the second straight day the S&P 500 saw an intraday swing of at least 1% in both directions. It’s the first time that has happened during consecutive sessions since March 2020. pic.twitter.com/ODC8V9K2hm
— Matt Turner (@Matt_Turnerr) October 14, 2022
It's opposite day! pic.twitter.com/iLQiBhZ8uA
— Bespoke (@bespokeinvest) October 14, 2022
21-day EMA: "You shall not pass!" $SPX pic.twitter.com/GW0PwzrIiO
— David Rath (@DJwrath) October 14, 2022
21-day EMA: "You shall not pass!" $SPX pic.twitter.com/GW0PwzrIiO
— David Rath (@DJwrath) October 14, 2022
$DIA and $DJT both turned lower after failing to break back above their June low pic.twitter.com/KeSo9O9d85
— Stacey.A.Lee (@BBaxter2020) October 14, 2022
Stock prices for three leading industry groups for the S&P 500 — semiconductors, homebuilders and transports — were all printing patterns of lower lows until June, but homebuilders have diverged from the group recently. What gives? pic.twitter.com/aRcu5qUpWW
— Gina Martin Adams (@GinaMartinAdams) October 14, 2022
Years in which the S&P 500 was down more than 2022 at this point in time (198 trading days)…
1931 (Great Depression)
2008 (Global Financial Crisis/Recession)
1937 (Recession)
2002 (Bursting of dot-com bubble/Recession in '01)
1974 (High Inflation/Recession) pic.twitter.com/DUNUlwAXPk— Charlie Bilello (@charliebilello) October 14, 2022
From @BankofAmerica Global Research: YTD annualized return for the 60/40 portfolio is the worst in 100 years. pic.twitter.com/VIBKWLV4Or
— Ben Johnson, CFA (@MstarBenJohnson) October 14, 2022
Runaway dollar freight train. It'll be another weekly high close. $UUP $DXY pic.twitter.com/8WfWKBfxyJ
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 14, 2022
If inflation is going to re-accelerate…
Why haven't I been able to make any money in inflationary assets for months and months?
Aren't liquid markets supposed to be discounting mechanisms? pic.twitter.com/t92Ehzc0Fn
— Mike Singleton, CFA (@InvictusMacro) October 14, 2022
The gap between 2-year and 10-year Treasury yields has reached the most inverted since the early 1980s. pic.twitter.com/ywCx0XQPP7
— Lisa Abramowicz (@lisaabramowicz1) October 14, 2022
$SPX last handful of times yield curve inverted in advance of market top and most of the declines were after it normalized as unemployment (bottom) moved up. Hopefully something different happens here. Interesting times pic.twitter.com/1iMp7fbs6d
— Gregory Krupinski (@G_krupins) October 14, 2022
probably nothing pic.twitter.com/yS2fJst1Yq
— Adam Singer (@AdamSinger) October 14, 2022
You’re all caught up now. Thanks for reading!