Daily Chart Report ? Thursday, January 6th, 2022
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Today’s Summary
Thursday, January 6th, 2022
Indices: Dow -0.47% | S&P 500 -0.10% | Nasdaq -0.13% | Russell 2000 +0.56%
Sectors: 5 of the 11 sectors closed higher. Energy led, gaining 2.23%. Materials lagged, falling 1.26%.
Commodities: Crude Oil futures rose 2.07% to $79.46 per barrel. Gold futures dropped 1.97% to $1,789 per ounce.
Currencies: The US Dollar Index inched higher by 0.06%.
Interest Rates: The US 10-year Treasury yield continued higher to a nine-month high of 1.725%.
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 by Steve Strazza (@sstrazza). It’s a weekly candlestick chart of the Bank ETF, $KBE, over the past 16-years. The heaviest weighted stocks in this ETF include $VOYA, $SBNY, $STL, $CMA, and $WBS. Steve points out that this Bank ETF is flirting with its pre-Financial crisis highs around $60. The recent strength in Banks and Financials has been driven by rising Treasury yields and a steepening yield curve. In a comment to The Chart Report, Steve said, “The banks are loving the fact that interest rates are moving higher. If you take a look at the 10-year yield, it’s attempting to break out of a nine-month base, with resistance around 1.75%. Rising rates might be painful if you’re overweight Growth/Tech stocks, but cyclical areas of the market like Financials and Energy tend to do well in a rising rate environment.”
Quote of the Day
“Go long when stocks reach a new high.
Sell short when they reach a new low”
– Jesse Livermore
Top Links
Nasdaq Down 3%+ in First Three Days – Bespoke
Bespoke examines what has historically happened when the Nasdaq falls 3% or more in the first three trading days of the year.
Nasdaq vs S&P 500 – All Star Charts
JC Parets explains why the Nasdaq could underperform the S&P 500 in 2022.
Even as Stocks Tickled New Highs, a Historic Thrust in Breadth – SentimenTrader
Jason Goepfert highlights a bullish breadth thrust that just triggered.
Bitcoin Sell-Off Violates Key Support Level and Suggests Additional Downside of 13%, Technical Analyst Says – Business Insider
Katie Stockton offers her technical perspective on Bitcoin after the cryptocurrency took another sharp leg lower yesterday.
Rules for Buying Crashing Growth Stocks – The Irrelevant Investor
Michael Batnick shares his thoughts on the carnage in $ARKK.
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You’re all caught up now. Thanks for reading!
