Daily Chart Report ? Wednesday, August 31th, 2022
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Today’s Summary
Wednesday, August 31st, 2022
Indices: Nasdaq 100 -0.57% | Russell 2000 -0.62% | S&P 500 -0.78% | Dow -0.88%
Sectors: 2 of the 11 sectors closed higher. Communications led, rising +0.24%. Materials lagged, falling -1.23%.
Commodities: Crude Oil futures dropped -3.04% to $88.85 per barrel. Gold futures fell -0.78% to $1,723 per ounce.
Currencies: The US Dollar Index fell -0.12%.
Crypto: Bitcoin rose +1.99% to $20,214. Ethereum gained +3.46% to $1,575.
Interest Rates: The US 10-year Treasury yield rose to 3.196%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Nick Reece (@nicholastreece). Billionaire trader, Paul Tudor Jones once famously said; “There is no training, classroom or otherwise, that can prepare for trading the last third of a move, whether it’s the end of a bull market or the end of a bear market.” Nick gives us a more empirical representation of what PTJ was talking about. Looking at all bear markets since 1929, he notes that the final third was the most painful 11 out of 16 times, or 69% of the time. The average decline in the final third is double that of the first or second third, and about equal to the first two-thirds combined. It’s impossible to tell which third we’re in now, but this data makes sense given that bear markets often end with capitulation. Have we seen the final puke yet?
Quote of the Day
“There is no training, classroom or otherwise, that can prepare for trading the last third of a move, whether it’s the end of a bull market or the end of a bear market.”
– Paul Tudor Jones
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Top Links
September’s First Trading Day Leans Bearish Last 14 Years – Almanac Trader
Jeff Hirsch examines how the major indices have historically performed on the first trading day in September.
September Seasonality: Mega-Caps – Bespoke
Bespoke points out that September hasn’t been a good month for the five largest stocks over the past decade ($AAPL, $MSFT, $AMZN, $TSLA, and $GOOGL).
XLE, How Much Money to Invest in Thee? – East Coast Charts
Louis Spector assesses the risk and reward of buying the Energy sector here.
Junk Bonds Selloff Keeps Bears in Charge – Kimble Charting Solutions
Chris Kimble examines the weakness in Junk Bonds.
The Best Part of Waking Up – All Star Charts
Ian Culley looks at the continued rise in Coffee prices and how to take advantage of it.
Top Tweets
You’re all caught up now. Thanks for reading!
