Daily Chart Report ? Wednesday, January 5th, 2022
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Today’s Summary
Wednesday, January 5th, 2022
Indices: Dow -1.07% | S&P 500 -1.94% | Nasdaq -3.34% | Russell 2000 -3.30%
Sectors: All 11 Sectors closed lower. Materials led, but closed flat. Real Estate lagged, dropping 3.25%.
Commodities: Crude Oil futures rose 1.12% to $77.85 per barrel. Gold futures gained 0.58% to $1,825 per ounce.
Currencies: The US Dollar Index slipped 0.10%.
Interest Rates: The US 10-year Treasury yield continued higher to 1.709%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in a note by John Roque of 22V Research. It’s a ratio chart of the NASDAQ vs. the S&P 500 over the past 24-years. The chart on the bottom is the same ratio, just zoomed in over the past 5-years. The Tech-heavy NASDAQ has dominated the S&P for much of the past two decades. However, just like the Growth/Value chart we looked at yesterday, this long-term trend appears to be reversing. As you can see, this ratio is being rejected at resistance from the dot-com bubble highs, while momentum is deteriorating at the same time. John explained, “The NASDAQ vs. S&P Ratio peaked in Feb ’21 and has been distributing, cresting, rolling, and topping since. We continue to think it works lower with NASDAQ underperforming relative to the S&P. Near-term and intermediate-term momentum indicators for this relationship are oversold, but a long-term version is not close to an oversold reading.”
Quote of the Day
“Remember, good stories are for books and movies, not for picking stocks.”
– Ian McMillan
Top Links
Santa Came to Town and 5 More Charts to Watch – LPL Financial Research
The team at LPL Financial Research breaks down the results of this year’s Santa Claus Rally and more.
Will Tech Stocks Under-Perform In 2022? Watch This Ratio! – Kimble Charting Solutions
Chris Kimble points out that the NASDAQ looks poised to underperform the S&P in the coming months.
Ark Innovation (ARKK) Now Underperforming QQQ Since the Pre-COVID Peak – Bespoke
Bespoke examines the continued weakness in the ARK innovation ETF, $ARKK.
Banks Bounce as Spreads Widen – All Star Charts
Ian Cully explains that bank stocks should continue to benefit from a steepening yield curve.
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Top Tweets
26K off the high tic- That’s a 38% haircut. I’m sure you’ll feel better the next time you see the Matt Damon Commercial ?
— Chris Robinson (@cer_hedge) January 5, 2022
You’re all caught up now. Thanks for reading!
