Daily Chart Report ? Thursday, January 13th, 2022

Today’s Summary
Thursday, January 13th, 2022

Indices: Dow –0.49% | S&P 500 -1.42% | Nasdaq -2.51% | Russell 2000 -0.76%

Sectors: 3 of the 11 sectors closed higher. Utilities led, gaining 0.49%. Tech lagged, dropping 2.59%.

Commodities: Crude Oil futures fell 0.63% to $82.12 per barrel. Gold futures slipped 0.32% to $1,821 per ounce.

Currencies: The US Dollar Index fell 0.13% to a fresh two-month low.

Interest Rates: The US 10-year Treasury yield dropped to 1.706%.

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 Matthew Timpane (@mtimpane). It’s a ratio chart of the Energy Sector vs. the S&P 500 over the past six years ($XLE/$SPX). Energy has been the worst-performing sector over the past 3, 5, and 10 years. However, the long-term trend of underperformance has been in the process of reversing over the past year or so. It was the best performing sector in 2021, gaining more than 50%, and it has continued to outperform by a wide margin in the new year. It’s already up more than 13% in the first two weeks of 2022, while the S&P is down about 2%. Matthew points out that the ratio is currently testing an important resistance level after forming a bottoming pattern known as an inverse head & shoulders. If it does break out here, it would be further confirmation that a long-term trade change is truly underway.

Quote of the Day

“When a trader starts to feel really smart, he or she is headed for a huge drawdown.”

– Peter Brandt