Daily Chart Report ? Wednesday, January 25th, 2023
Sponsored By:
Today’s Summary
Wednesday, January 25th, 2023
Indices: Russell 2000 +0.25% | Dow +0.03% | S&P 500 -0.02% | Nasdaq 100 -0.27%
Sectors: 8 of the 11 sectors closed higher. Financials led, gaining +0.78%. Utilities lagged, falling -1.35%.
Commodities: Crude Oil futures were flat and continue to trade at $80.15 per barrel. Gold futures rose +0.28% to a 9-month high of $1,943 per ounce.
Currencies: The US Dollar Index fell -0.27% to a 7-month low of $101.64.
Crypto: Bitcoin rose +1.62% to $23,006. Ethereum rose +2.54% to $1,596.
Interest Rates: The US 10-year Treasury yield inched lower by 3.447%.
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 David Keller (@DKellerCMT). It’s a ratio chart of the Consumer Discretionary Sector vs. the Consumer Staples Sector over the past two years. The equal-weight version (lower pane) provides a broader representation, as heavyweights like $AMZN & $TSLA distort the cap-weight version. This ratio is used to gauge the health of the broader market. The idea is, Discretionary stocks sell the things we all want (think $AMZN, $TSLA, $NKE, etc.). On the other hand, Staple stocks sell the things we all need and will continue to buy no matter how poor the economy is (think toilet paper, toothpaste, and cigarettes – stocks like $PG, $CL, $PM). If the things we want are outperforming the things we need, it’s a sign of a healthy consumer and economy. David points out the equal-weight version of this ratio is breaking out of an eighth base. This ratio warned of impending weakness when it peaked two months ahead of the S&P 500 in November 2021. Today, it’s hinting at impending strength.
Quote of the Day
“After a stock market decline, people may perceive more risk than before when, in fact, the decline may have taken some of the risks out of the market.”
– Robert Shiller
Top Links
Bellwether – Trading Adventures
Andrew Moss gives a mid-week update on the markets.
Potential Levels of Future Interest – All Star Charts
JC Parets lays out some key levels to watch in the US Dollar Index.
Just Another Bear Market Rally – PFT Trading
Greg Rieben highlights several noteworthy charts to keep an eye on.
S&P 500 Market Breadth Signal Sounding – Schaeffer’s Investment Research
Rocky White examines some of the recent improvements in market breadth.
United States Natural Gas Fund (UNG) – Fairlead Strategies Idea Generator
The team at Fairlead Strategies outlines a trade idea on the Natural Gas ETF, $UNG.
Top Tweets
You’re all caught up now. Thanks for reading!