Daily Chart Report ? Tuesday, March 29th, 2022
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Today’s Summary
Tuesday, March 29th, 2022
Indices: Russell 2000 +2.65% | Nasdaq 100 +1.68% | S&P 500 +1.23% | Dow +0.97%
Sectors: 10 of the 11 sectors closed higher. Real Estate led, gaining +2.93%. Energy was the only sector that closed lower, slipping -0.26%.
Commodities: Crude Oil futures fell -1.62% to $104.24 per barrel. Gold futures dropped -1.42% to $1,912 per ounce.
Currencies: The US Dollar Index dropped -0.72%.
Crypto: Bitcoin rose +0.40% to $47,307. Ethereum rose +1.16% to $3,375.
Interest Rates: The US 10-year Treasury yield fell to 2.400%.
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 Callie Cox (@callieabost). The 2yr/10yr yield curve briefly inverted today for the first time since 2019. The yield curve has been known to be one of the best leading economic indicators out there. It has inverted before all of the past 10 recessions since 1950, but there are some important caveats to consider. For starters, another closely watched part of the yield curve, the 3mo/10yr, is nowhere near inversion. Callie also points out that it has historically taken anywhere from 5-33 months to see a recession after the 2yr/10yr curve has inverted in the past. The last time it inverted in 2019, the S&P 500 rallied another 17% in less than six months before peaking along with the economy. This is definitely worth keeping in mind, but it can be psychologically and financially painful to try and time this signal. For more on this, check out the full thread.
Quote of the Day
"The brains of humans contain a mechanism that is designed to give priority to bad news."
- Daniel Kahneman
Top Links
The Big Bounce - The Irrelevant Investor
Michael Batnick shares his thoughts on the recent rebound in stocks.
Time to Pay Attention to Growth Themes Again? - Potomac Fund Management
Dan Russo analyzes the strongest and weakest sectors of the S&P 500.
Speculators Step Away From S&P - Bespoke
Bespoke examines positioning within S&P 500 futures.
Currencies Get Real - All Star Charts
The team at All Star Charts takes a look at which currencies could benefit from higher interest rates.
Three Quick Facts About the Yield Curve Inversion - Callie Cox
Here's a good Twitter thread from Callie Cox that sums up everything you need to know about yield curve inversions.
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You’re all caught up now. Thanks for reading!