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Today’s Summary
Friday, October 21st, 2022
Indices: Dow +2.47% | Nasdaq 100 +2.39% | S&P 500 +2.37% | Russell 2000 +2.22%
Sectors: All 11 sectors closed higher. Materials led, gaining +3.46%. Communications lagged but still gained +0.64%.
Commodities: Crude Oil futures rose +0.64% to $85.05 per barrel. Gold futures gained +1.19% to $1,656 per ounce.
Currencies: The US Dollar Index dropped -0.86%.
Crypto: Bitcoin inched higher by +0.64% to $19,165. Ethereum rose +1.32% to $1,300.
Interest Rates: The US 10-year Treasury yield inched lower to 4.221%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPY +7.5% off last week's low pic.twitter.com/7dyBJ9VzsS
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 21, 2022
Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). It’s a weekly candlestick chart of the S&P 500 over the past two years. The past five Fridays have been ugly, but we finally ended the week on a positive note, rising 2.37% today. It was a choppy week, but we rose 4.74% overall, marking the fourth-best week of the year. We’re above the June lows and the 200-week moving average, which is constructive. However, we’re still down 21% from the peak, so there’s a lot of damage to repair. Will the bulls be able to build on these gains next week?
Quote of the Day
“To be successful in life, you must get in the habit of turning negatives into positives.”
– George Foreman
Trendlines > Headlines
Check out the latest episode of Trendlines over Headlines! In this week’s episode, David Settle of Market Scholars joins us to make sense of the current market environment. He shares his perspective on Stocks, Commodities, the US Dollar, and more!
Top Links
October 21, 2022 Weekend Market Review – Trading Adventures
Andrew Moss recaps this week’s price action.
Price and Breadth Blowout Into the Weekend – Bespoke
Bespoke examines the large daily moves we’ve seen this year.
October Mid-Month Conference Call: 5 Key Takeaways – All Star Charts
The team at All Star Charts highlights five noteworthy themes to keep an eye on.
Tape and Fed Outweigh Seasonality – StockCharts
Arthur Hill explains why he thinks the S&P 500 won’t follow its seasonal pattern this year.
Top Tweets
$SPY Bright green to end the week! ? pic.twitter.com/qeXFff9swJ
— TrendSpider (@TrendSpider) October 21, 2022
Highest close for the S&P 500 in two weeks, and just above the 30-day moving average. pic.twitter.com/rzhotKFDtN
— Eddy Elfenbein (@EddyElfenbein) October 21, 2022
$SPX net flat since 9/23. What's the better reason?
A failure to go down.
Or
The inability to go up. pic.twitter.com/l0EkLix2ON
— Frank Cappelleri (@FrankCappelleri) October 21, 2022
The Dow Jones Industrial Average is now up 3 weeks in a row for the first time in 2022. pic.twitter.com/TXziHyssAo
— J.C. Parets (@allstarcharts) October 21, 2022
Positive RSI Divergence on WEEKLY SPX Chart = Bullish
– Weekly $SPX made new low
– While Weekly RSI making new high
– This positive divergence has historically preceded meaningful $SPX reversals pic.twitter.com/GPP0b7cZ6r— Matt Cerminaro (@mattcerminaro) October 21, 2022
Despite the bear market, $SPX continues to track its seasonal pivots very well. On avg, it sets a low in 2nd week of October (played out), after a mid Sept peak. I trade price only, but IF keeps tracking, next 2 weeks strong until the next sustained weak phase in early November pic.twitter.com/wHGBSMb68X
— Adam Mancini (@AdamMancini4) October 21, 2022
Going back to 1950, the S&P 500 Index has always had a positive return during the year following midterm elections. The average return over the 12 months following midterms has been 15.1% while only 7.1% in all other years. pic.twitter.com/cjgDhIj02Q
— Barchart (@Barchart) October 21, 2022
$GOVT Treasurys down for yet another week.
Will we make it a baker's dozen? pic.twitter.com/5y4u3ZFITU
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 21, 2022
$TLT vs. $SPX – Bonds relative to stocks had their worst week since April 2020 (132 weeks ago). pic.twitter.com/sYLhd1NlyN
— Larry Thompson, CPA (@HostileCharts) October 21, 2022
$TLT $SPY One last chart for you to think about:
The TLT has NEVER been cheaper relative to the SPY dating back to 2002!
Either TLT massively goes up, or SPY massively goes down.
One has to give. I say its time for TLT to have that massive dead cat bounce right here right now. pic.twitter.com/ApImCrtkEz
— Heisenberg (@Mr_Derivatives) October 21, 2022
If Treasuries were a stock, everyone would be screaming this week looks like capitulation.
The end of the world is the bull case.$TLT $SPX pic.twitter.com/Pllmvj1eCX
— Michael A. Gayed, CFA (@leadlagreport) October 21, 2022
You’re all caught up now. Thanks for reading!