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Today’s Summary
Wednesday, September 29th, 2021
Indices: US Stocks were little changed in today’s session, with the Dow rising 91 points or 0.26%. The S&P 500 inched higher by 0.16%, while the Nasdaq slipped 0.24%. The Russell 2000 underperformed, falling 0.20%.
Sectors: 7 of the 11 sectors closed higher. Utilities led, gaining 1.31%, after falling for 14 consecutive days. Materials lagged, falling 0.41%.
Commodities: Crude Oil futures moved lower by 0.70% to $74.46 per barrel. Gold futures fell 0.66% to $1,726 per ounce.
Currencies: The US Dollar Index jumped 0.76% to a 1-year high.
Interest Rates: The 10-year US Treasury yield ended a four-day winning streak, falling to 1.520%
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Fintech vs. traditional Banks pic.twitter.com/1OC11QxcOH
— Strategas (@StrategasRP) September 29, 2021
Today’s Chart of the Day was shared by Strategas Research (@StrategasRP). It’s a chart of the Fintech ETF, $ARKF, along with its performance relative to traditional Bank stocks below ($KBW). The top holdings in $ARKF include Square ($SQ), Shopify ($SHOP), Coinbase ($COIN), Zillow ($Z) and PayPal ($PYPL). Strategas points out that this group of sexy fintech stocks is breaking down below its 50-day and 200-day moving averages. At the same time, boring old traditional Bank stocks have been outperforming for the majority of this year, and look poised to continue doing so. This is a good example of the effect that rising rates are having on Growth stocks, like the ones in $ARKF. As rates move higher, Growth stocks look less attractive to Value-oriented stocks like traditional Banks. We keep hearing Financials “should” do well in a rising rate environment, and that’s true, but it’s important to be selective within the group.
Quote of the Day
“The more a man really knows about speculation, the less certain he becomes in regard to any market movement.”
– Charles H. Dow
Top Links
Four Charts that Signal the Reopening Trade May Be Back – LPL Financial Research
The team at LPL Financial Research takes a look at the breakout in interest rates and how it’s driving the trends in the stock market.
How Has the 10-year Yield Historically Correlated to Growth Stock Performance? – Bespoke
Bespoke examines the relationship between yields and Growth stocks.
Are We Shifting from “Buy the Dips” to “Sell the Rips”? – Potomac Fund Management
Dan Russo shares his thoughts on the current market environment.
Banks Like a Tantrum, but ARKK Does Not – Trend Investor Pro
In this quick video, Arthur Hill highlights several important technical developments.
Every Technician’s Dream – All Star Charts
Louis Sykes explains why technical analysis and Crypto pair well together.
Top Tweets
S&P 500 is having its worst month since last September and, if continues to weaken, would be on track for weakest since March 2020
[Past performance is no guarantee of future results] pic.twitter.com/UxDt2hc3YL— Liz Ann Sonders (@LizAnnSonders) September 29, 2021
Snoozer of a day $SPY pic.twitter.com/q8dqgDN5ib
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) September 29, 2021
Pretty clear line in the sand on Nasdaq to manage risk. $NQ_F pic.twitter.com/CPahpnTN3p
— Pratyush Tulsian (@PrattyCharts) September 29, 2021
As Staples move to new relative lows, a major divergence in momentum has been playing out YTD. How will this relationship resolve? Historically, big upside moves have not been Bullish for stocks.. $RHS $RSP $XLP $SPY $SPX pic.twitter.com/1hKvvMRglz
— Drew Wells, CMT, CIMA® (@DrewTheCharts) September 29, 2021
In an environment where rates are rising, we might expect outperformance from small-caps.$IWM $SPY $TNX pic.twitter.com/UglJWZj5RX
— Alfonso Depablos (@AlfCharts) September 29, 2021
Yes, another Growth vs. Value chart.$IVW $IVE pic.twitter.com/kj7Lqxa7j6
— Shane C. Murphy (@murphycharts) September 29, 2021
Are peoples portfolio ready for this? I think not… $SPY / $CRB pic.twitter.com/xf5Xc55le6
— Grant Hawkridge (@granthawkridge) September 29, 2021
nothing new to see here, just a down trend in the stocks vs. commodities chart… pic.twitter.com/7PVFiuqSzD
— David Cox, CMT, CFA (@DavidCoxWG) September 29, 2021
Here's the chart showing the last spike in $UNG volume. pic.twitter.com/DmfqHx1kmH
— Andrew Thrasher, CMT (@AndrewThrasher) September 29, 2021
Checking in on defensive assets…
Yen getting slaughtered $JPY pic.twitter.com/TwENZG8Pmq
— Steven Strazza (@sstrazza) September 29, 2021
US Dollar wrecking ball in full swing today surging to fresh year-to-date highs. Remember how loud and "obvious" the short Dollar narrative was at the start of this year? $DXY pic.twitter.com/DTDfVkmwSl
— Evan Medeiros (@EvanMedeiros) September 29, 2021
US Dollar $DXY hitting it's highest levels of the year. I'm watching the 94.75-95 level as an area of potential resistance. pic.twitter.com/sGmBhzHpCN
— Ian Culley (@IanCulley) September 29, 2021
Would this be enough evidence to show that strong $DXY is not always negative for U.S. equities? pic.twitter.com/iocMBqQN9n
— Aksel Kibar, CMT (@TechCharts) September 29, 2021
You’re all caught up now. Thanks for reading!