Sponsored By:
Today’s Summary
Thursday, October 20th, 2022
Indices: Dow -0.30% | Nasdaq 100 -0.51% | S&P 500 –0.80% | Russell 2000 -1.24%
Sectors: 3 of the 11 sectors closed higher. Communications led, gaining +0.24%. Utilities lagged, dropping -2.52%.
Commodities: Crude Oil futures were unchanged at $84.51 per barrel. Gold futures inched up +0.16% to $1,637 per ounce.
Currencies: The US Dollar Index ticked lower by just -0.05%.
Crypto: Bitcoin fell -0.60% to $19,012. Ethereum inched lower by -0.34% to $1,281.
Interest Rates: The US 10-year Treasury yield continued to its highest level since 2008 at 4.232%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPY above its June low, however $SPY A/D line is below its June low pic.twitter.com/vzAVaMg00B
— Stacey.A.Lee (@BBaxter2020) October 20, 2022
Today’s Chart of the Day was shared by Stacey Lee (@BBaxter2020), It’s a daily candlestick chart of the S&P 500 over the past year, along with its Advance/Decline line in the lower panel. The recent bounce has been pretty unimpressive so far. It hasn’t been the type of energetic reaction that you’d expect to see at a bottom. Instead, it’s been a choppy mess where every rally attempt gets faded. The S&P continues to hold above its June low, however, Stacey points out that the Advance/Decline line is back below its respective June low. The Advance/Decline line often leads the broader market higher or lower. This is just one of many data points out there, but it’s not confirming the start of a new leg higher just yet.
Quote of the Day
“A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don’t bother to look anymore.”
– John Hammerslough
Top Links
Searching for Stabilization Amid a Volatile Market – Means to a Trend
Austin Harrison takes a look at the S&P 500, Interest Rates, and the Dollar.
A Small Step in the Right Direction – Research by Potomac
Dan Russo gives an update on market breadth.
No Stress in Credit – All Star Charts
JC Parets points out that high-yield credit spreads aren’t showing any major signs of stress at the moment.
Sentiment Streaks Press On – Bespoke
Bespoke breaks down the results of this week’s AAII Sentiment Survey.
Top Tweets
The S&P 500 has closed in the red the last 5 Fridays.
Will tomorrow be number 6?$SPX $SPY
— Greg Rieben (@gregrieben) October 20, 2022
TGIF?
Not really, as the S&P 500 is down an average of 0.29% on this day so far in 2022.
To put that in context, only 2001 and 1937 saw a worse average return. pic.twitter.com/KKvd72mEwT
— Ryan Detrick, CMT (@RyanDetrick) October 20, 2022
Today was the S&P 500's 16th ~reverse day~ of the year (ie gaining/losing 1% intraday then closing in the opposite direction) of 2023
It's been a hella frustrating year for the headline trader pic.twitter.com/hxIEYf9yVn
— Callie Cox (@callieabost) October 20, 2022
$NDX $QQQ: Some internals now flipping negative after the whipsaw and reversals of the last few days. If you are trading this market short term, unless you have taken profits intraday, you are probably feeling like an idiot. pic.twitter.com/vCFTnEdVvq
— Victor Riesco, CMT (@Global_Trader) October 20, 2022
AAII sentiment:
? 22.6%
? 56.2%?> 50% for 5th week in a row. Only 1990 had a longer stretch. pic.twitter.com/VCd4F9FYQZ
— Willie Delwiche, CMT, CFA (@WillieDelwiche) October 20, 2022
$XLE energy checks so many boxes. Valuation + dividend + momentum + great looking strong charts + big time growth. Something for just about anyone really. One of the only games in town. Probably best not to over complicate until the charts say otherwise pic.twitter.com/FjfVJj3lpe
— Gregory Krupinski (@G_krupins) October 20, 2022
Margin debt is off the record highs set last year, and the speed of the deleveraging suggests excessive investor pessimism. Reversals from extremes, which we have not seen yet, have been followed by above average gains up to 18 months later. @NDR_Research pic.twitter.com/gVlqfE8hIR
— Rob Anderson (@robanderson_stl) October 20, 2022
The "Great" British Pound. lol great pic.twitter.com/qPM1XuuEFw
— J.C. Parets (@allstarcharts) October 20, 2022
SNAP down 20%. Down almost 90% YTD
It can always get worse pic.twitter.com/rzFKaT1E3b
— Bucco Capital (@buccocapital) October 20, 2022
You’re all caught up now. Thanks for reading!