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Today’s Summary
Tuesday, October 25th, 2022
Indices: Russell 2000 +2.73% | Nasdaq 100 +2.10% | S&P 500 +1.63% | Dow +1.07%
Sectors: All 11 sectors closed higher. Real Estate led, gaining +3.95%. Energy lagged but still closed higher by +0.10%.
Commodities: Crude Oil futures rose +0.87% to $85.32 per barrel. Gold futures gained +0.24% to $1,659 per ounce.
Currencies: The US Dollar Index dropped -0.99%.
Crypto: Bitcoin rose +4.21% to $20,146. Ethereum jumped +9.41% to $1,470.
Interest Rates: The US 10-year Treasury yield dropped to 4.106%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$QQQ pic.twitter.com/r8ntjscLpm
— J4 (@J4_doji) October 25, 2022
Today’s Chart of the Day was shared by @J4_doji. The Nasdaq 100 has bounced more than 9% from its recent low. However, it’s still down nearly 30% from its peak and it continues to be in a downtrend. It’s already had two double-digit bear market rallies this year. One in March (+17%) and another over the Summer (+22%). Both rolled over at the 0.618% Fibonacci retracement of their preceding declines. The 0.618% retracement of the current decline stands around 12,500, which is about 7.5% higher from here. Will Fibonacci smack down another rally this year?
Quote of the Day
“Optimism often sounds like a sales pitch,
pessimism sounds like someone trying to help you.”
– Morgan Housel
Top Links
Bull Market Confirmation – All Star Charts
JC Parets shares what he’s watching to confirm a new bull market.
No Change to the Currents Under the Surface – Research by Potomac
Dan Russo analyzes each of the 11 sectors of the S&P 500.
Chinese Stock Market Sends Warning As Waterfall Selloff Continues! – Kimble Charting Solutions
Chris Kimble points out that Hang Seng could fall further before reaching long-term support.
Near Record Volatility in the 10-Year Yield* – Bespoke
Bespoke examines the volatility in the 10-year yield.
Top Tweets
Today's close and tomorrow's open are going to look very different … pic.twitter.com/4NS1nINxpA
— Stock Market News – Evan (@StockMKTNewz) October 25, 2022
And just like that…we're back to the moving averages for the S&P. pic.twitter.com/b7VuiV7ozF
— Callie Cox (@callieabost) October 25, 2022
$SPY daily chart smootching the 50-day moving average. pic.twitter.com/flYAbqYtAj
— Sean McLaughlin, NLD ? (@chicagosean) October 25, 2022
This is the 4th time in 2022 that $SPX rallied 7% or more in only 9 sessions. How are we feeling about this one? 4th time the charm? pic.twitter.com/rvOFnVHKHq
— David Settle, CMT (@davidsettle42) October 25, 2022
With bonds $AGG -1.7% pic.twitter.com/XQGxLyh4A6
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 25, 2022
Remember the recent BofA Global Fund Manager survey showed a 3 standard deviation to underweight equities and nearly a 3 standard deviation to cash.
Rarely is the crowd right when they all agree. pic.twitter.com/xaVYNAgft7
— Ryan Detrick, CMT (@RyanDetrick) October 25, 2022
S&P 500 Returns by Day of the Week pic.twitter.com/7kICdMeRl6
— Jared Blikre (@SPYJared) October 25, 2022
The US Dollar gave a Point & Figure sell signal yesterday for the first time since November 2020. Although one signal does not change a trend, it’s an interesting development and certainly not the norm this year (@TheChartReport ). pic.twitter.com/vDyuHoYH7j
— Nasdaq Dorsey Wright (@DorseyWrightDWA) October 25, 2022
In recent decades, $TNX has usually anticipated the end of Fed tightening cycles. pic.twitter.com/JemF2AFM77
— Mark Ungewitter (@mark_ungewitter) October 25, 2022
$TLT the 10yr UST Yield just advanced12 consecutive weeks ending 10/21. Since 1962 (60yrs!) its only done that one other time which ended in May 1984. In '84 it then declined 11 of the following 12 months and took nearly 2 yrs (23 months) before reaching a meaningful low. pic.twitter.com/f2ubsnaIF4
— brian.joyce.nasdaq (@Nasdaqbjoyce) October 25, 2022
Flirting with inverting: 3 month – 10 year Treasury yield spread down to 2 basis points. pic.twitter.com/3V5nPdLbPN
— Kathy Jones (@KathyJones) October 25, 2022
Google reports earnings
-6% pic.twitter.com/6qJvm8mc6O
— TradingView (@tradingview) October 25, 2022
$QQQ down -1.2% after hours pic.twitter.com/FJ9V09mCyH
— Katie Greifeld ? (@kgreifeld) October 25, 2022
You’re all caught up now. Thanks for reading!