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Today’s Summary
Tuesday, July 12th, 2022
Indices: Russell 2000 -0.22% | Dow -0.62% | S&P 500 -0.92% | Nasdaq 100 -0.97%
Sectors: All 11 sectors closed lower. Communications led but still inched lower by -0.05%. Energy lagged, falling -1.95%.
Commodities: Crude Oil futures tumbled -7.93% to $95.84 per barrel. Gold futures fell -0.40% to $1,725 per ounce.
Currencies: The US Dollar Index ticked lower by just -0.05%.
Crypto: Bitcoin fell -2.57% to $19,435. Ethereum dropped -4.46% to $1,047.
Interest Rates: The US 10-year Treasury yield fell to 2.971%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#NQ_F, 1h
NQ has been dancing around 11800 for 2 months now… pic.twitter.com/0xgycTPVyw
— Yuriy Matso (@yuriymatso) July 12, 2022
Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). It’s a 1-hour candlestick chart of Nasdaq Futures since the beginning of May. Yuriy points out that the Nasdaq has made a series of lower highs & higher lows over the past two months, forming a triangle pattern with an apex around 11,800. The S&P 500 has formed a similar pattern over the past two months around 3,850. When price coils into a tight range like this, it suggests the market is gearing up for a large move up or down. These consolidation patterns tend to resolve in the direction of the prevailing trend, which in this case is lower. If it resolves higher instead, the next major resistance level is around 13,000, which is about 10% higher. Either way, keep an eye on which direction this consolidation pattern resolves in the near term.
Quote of the Day
“The market is better at predicting the news than the news is at predicting the market.”
– Gerald M. Loeb
Top Links
NASDAQ Midyear Rally Fizzles and Bears Not Expected to Hibernate Until Late Q3/Early Q4 – Almanac Trader
Jeff Hirsch points out that Nasdaq failed to deliver an early-July rally this year.
Using Volume to Help Identify Market Regimes – Andrew Thrasher
Andrew Thrasher explains how he uses volume to evaluate the market.
Another Curve Inverts – Bespoke
Bespoke points out that another part of the yield curve inverted today (10yr-1yr).
Not an Inflation Hedge. Not a Safe Haven. – All Star Charts
JC Parets shares his thoughts on Gold.
Top Tweets
Mr. Softy indeed $MSFT pic.twitter.com/UREo0InFCi
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) July 12, 2022
$DIA, $DJIA and $DJTA both met resistance at their May lows turning lower pic.twitter.com/w3c4mMXGds
— Stacey.A.Lee (@BBaxter2020) July 12, 2022
Ed Clissold, @NDR_Research's Chief U.S. Strategist, featured this interesting chart showing that, on average, the SP500 tends to bottom about 4 months before the official recession end date. Markets lead the economy. pic.twitter.com/vwnTNa2UiX
— Day Hagan Asset Mgt (@DayHagan_Invest) July 12, 2022
Nasdaq needs a 50% gain to get back to prior highs from the lows in June. $NDX $QQQ Check out the complete display here –> https://t.co/9htBorPR8p pic.twitter.com/VBgTOjHAtG
— Greg Schnell, CMT (@Schnellinvestor) July 12, 2022
$SPX – You really dont need many more charts than this
Price – Denied
RSI – Denied
A/D Line – DeniedGo enjoy your summer. pic.twitter.com/8ZwTNV7Hqj
— Larry Thompson, CPA (@HostileCharts) July 12, 2022
commodities, today, all in one colour… pic.twitter.com/rnHXOUuS24
— David Cox, CMT, CFA (@DavidCoxWG) July 12, 2022
Big spot here for oil as it tests the 200EMA for the second time in 5 trading days. pic.twitter.com/IRrKtDR9Eu
— Brian Lund (@bclund) July 12, 2022
$DXY The U.S. Dollar Index is at its highest levels in ~20 years. What’s more notable is how rapid the move has been, with the 6m Rate-of-Change (z-score) being in the 95th percentile. This puts a lot of added pressure on Financial Conditions and will likely weigh on EPS growth. pic.twitter.com/qhgNARZWaf
— Lighthouse Capital, CMT, CFA (@LighthouseCap23) July 12, 2022
We’re thinking 10-Year Yields continue to go lower from here. Buy $TLT. pic.twitter.com/oIzq5j5OMK
— Carter Braxton Worth (@CarterBWorth) July 12, 2022
This benchmark U.S. yield curve is now the most inverted since 2007. pic.twitter.com/20X3hvPduu
— Lisa Abramowicz (@lisaabramowicz1) July 12, 2022
Back to January 2021 levels for 10y-3m yield spread pic.twitter.com/ibceT9x3pN
— Liz Ann Sonders (@LizAnnSonders) July 12, 2022
Overall corporate insider buy/sell ratio continues to soar. Are they seeing better than expected earnings ahead? Or should they be seeing a psychiatrist?#sentimentrader pic.twitter.com/nNzIWoyRuN
— Jay Kaeppel (@jaykaeppel) July 12, 2022
You’re all caught up now. Thanks for reading!