Daily Chart Report π Tuesday, May 9, 2023
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Todayβs Summary
Tuesday, May 9, 2023
Indices: Dow -0.17% | Russell 2000 -0.27% | S&P 500 -0.46% |Nasdaq -0.68%
Sectors: 2 of the 11 sectors closed higher. Industrials led, gaining +0.22%. Materials lagged, falling -0.91%.
Commodities: Crude Oil futures rose +0.75% to $73.71 per barrel. Gold futures gained +0.48% to $2,043 per oz.
Currencies: The US Dollar Index rose +0.26% to $101.65.
Crypto: Bitcoin fell -0.44% to $27,569. Ethereum fell -0.30% to $1,844.
Interest Rates: The US 10-year Treasury yield rose to 3.522%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Todayβs Chart of the Day was shared in a note by Steven Suttmeier at BofA Global Research. The chart shows the S&P 500 (top) and a ratio of Small Caps vs. Large Caps (bottom) over the past century. One of the most bearish technical developments lately has been the underperformance from Small Cap stocks, as the Russell 2000 is testing three-year lows on a relative basis. Small Caps are often viewed as a leading indicator for the broader market, and their relative performance is considered a measure of risk appetite. However, the chart suggests that Small Cap underperformance may not be as bearish as conventional wisdom suggests. Suttmeier notes, "Investors are worried about lackluster Small Caps, but Small Caps tend to lag Large Caps during secular bull markets."
Quote of the Day
"Diversification is about giving up on the ability to hit a grand slam so you donβt strike out at the plate."
- Ben Carlson
Trendlines > Headlines
https://youtu.be/Vbh4WCzyWv4
The latest episode of Trendlines over Headlines is out!
This week, James Bartelloni joined us to talk technicals. James is a former Top Gun pilot turned technician and the founder of BartsCharts.com. We discussed his unorthodox approach to analyzing the markets and took a close look at Banks and the VIX.
Top Links
Ben Carlson explains why exposure to international equities is prudent despite a decade of underperformance vs. the US.
Ian Culley looks at what commercial positioning in Gold suggests about the US Dollar Index.
It's Just a Matter of Time - The Weekly Grind
Sam McCallum highlights a few noteworthy charts.
Technical Tuesdays - The Chart Report
Here's the recording from our Twitter Spaces this morning, and be sure to join us again next Tuesday!