Daily Chart Report ? Thursday, February 3rd, 2022
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Today’s Summary
Thursday, February 3rd, 2022
Indices: Dow -1.45% | S&P 500 -2.44% | Nasdaq -3.74% | Russell 2000 -1.90%
Sectors: 10 of the 11 closed lower. Consumer Staples led, ticking higher by just 0.03%. Communications lagged by a wide margin, tumbling 6.69%.
Commodities: Crude Oil futures rose 2.28% to a seven-year high of $90.27 per barrel. Gold fell 0.34% to $1,804 per ounce.
Currencies: The US Dollar Index continued lower for the fourth consecutive day, dropping 0.67%.
Interest Rates: The US 10-year Treasury yield rose to 1.832%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche). The chart compares the six-month performance of Stocks ($VTI), Bonds ($AGG), and Commodities ($DBC). Willie points out that Commodities continue to outperform Stocks and Bonds. Generally speaking, investors lack exposure to Commodities as an asset class, and it’s easy to understand why. Prior to 2020, Commodities had been dead money for a decade. They don’t yield income like Stocks or Bonds, so they were relatively unattractive in the low-interest-rate environment that we had been in. Also, they require more tactical management than Stocks or Bonds, making them unpopular in this era of passive investing. We could easily see Commodities continue to shine, as money managers chase performance in this abandoned asset class.
Quote of the Day
“If you want to have a better performance than the crowd, you must do things differently from the crowd.”
– Sir John Templeton
Top Links
Midweek Update – The Chart Report
In this quick video, Steve Strazza and I discuss some of the biggest technical developments from this past week, including the breakout in Global yields and Energy stocks.
A Little Less Negative – Bespoke
Bespoke breaks down the results of the latest AAII Sentiment Survey.
Sector Rotation to Defense Continues – RRG Charts
Julius de Kempenaer takes a look at recent sector rotation within the S&P 500.
Gold and Euro Bulls Hope Trend Line Support Holds! – Kimble Charting Solutions
Chris Kimble examines the relationship between the Euro and Gold.
The Smaller and Broader the Index, the Worse the Breadth – Potomac Fund Management
Dan Russo shares his weekly breadth analysis.
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Top Tweets
You’re all caught up now. Thanks for reading!
