Daily Chart Report ? Tuesday, March 8th, 2022
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Today’s Summary
Tuesday, March 8th, 2022
Indices: Russell 2000 +0.60% | Nasdaq 100 -0.39% | Dow -0.56% | S&P 500 -0.72%
Sectors: 2 of the 11 sectors closed higher. Energy led, gaining +1.57%. Consumer Staples lagged, dropping -2.70%.
Commodities: Crude Oil futures rose +3.60% to the highest level in over a decade at $123.70 per barrel. Gold futures gained +2.37% to a fresh 18-month high of $2,043 per ounce.
Currencies: The US Dollar Index fell -0.16%.
Crypto: Bitcoin rose +1.92% to $38,747. Ethereum gained +3.60% to $2,581.
Interest Rates: The US 10-year Treasury yield rose to 1.851%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$XAU/$INDU ratio ... learned from Martin Pring - the monthly period of Gold to the Dow, using a crossover w/ the 48M sma as a signal to over/under-weight gold. Flipped to OW in Feb. Note: brief head fake in 2020 ... but often the signal is long lasting. pic.twitter.com/YubzOGXbo1
— brian.joyce.nasdaq (@Nasdaqbjoyce) March 8, 2022
Today’s Chart of the Day was shared by Brian Joyce (@Nasdaqbjoyce). It's a ratio chart of Gold vs. the Dow Jones Industrial Average, over the past five decades ($XAU/$INDU). Gold is up more than 10% year-to-date while the Dow is down about 10% over the same period. Brian points out that Gold's recent bout of outperformance could be the start of a longer-term trend, as this ratio recently crossed above its 48-month moving average (green). This indicator saw a false signal in 2020, but over the past 50-years, it has served as a pretty good guide on being overweight/underweight Gold.
Quote of the Day
"Following trends is easier than trying to call turns in them."
- Gerald M. Loeb
Top Links
Country ETFs Falling Below Pre-COVID Highs - Bespoke
Bespoke points out that several global ETFs are back below their February 2020 highs.
Who Charted? Breaking Key Levels - Potomac Fund Management
In this video, Dan Russo and Drew Wells highlight six charts in six minutes.
I Used to Be a Gold Bug - All Star Charts
JC Parets shares his thoughts on Gold.
Nothing Good Happens Below the 200-Day - The Final Bar
In this video, David Keller discusses this week's price action with Matthew Tuttle of Tuttle Capital Management.
It's Been a Good Run - The Irrelevant Investor
Michael Batnick offers some thoughts on the current market environment.
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Top Tweets
Guess the NASDAQ bear market is official: The Composite joins the three-quarters of its constituents that have already dropped 20% from there highs.
Question now is whether it will join the nearly 50% that have been cut in half. pic.twitter.com/xxEMPcfxQe
— Willie Delwiche, CMT, CFA (@WillieDelwiche) March 8, 2022
Drawdown charts aren't nearly as meaningful without also showing the rallies that preceded the drawdowns $NDX $QQQ pic.twitter.com/LYRJ2kruV5
— David Settle, CMT (@davidsettle42) March 8, 2022
“Once the Nasdaq initially falls 20%+ from a 52-week high, short-term performance has been relatively muted, but three, six, and twelve months later, median returns were better than average,” via @bespokeinvest pic.twitter.com/6oCEFEXBo4
— Jessica Menton (@JessicaMenton) March 8, 2022
“Once the Nasdaq initially falls 20%+ from a 52-week high, short-term performance has been relatively muted, but three, six, and twelve months later, median returns were better than average,” via @bespokeinvest pic.twitter.com/6oCEFEXBo4
— Jessica Menton (@JessicaMenton) March 8, 2022
Midterm years see an average peak to trough correction of 17.1%.
12.4% so far this year feels uncomfortable, but need to remember this is normal in midterm years.
The good news is a year later stocks are up more than 30%. pic.twitter.com/4LhZhyaByJ
— Ryan Detrick, CMT (@RyanDetrick) March 8, 2022
QThe S&P 500 is presently down -11.5% thus far in Q1, after closing the prior quarter at a new all-time high quarterly close.
Interestingly, -5% or worse quarterly declines following an all-time high quarterly close have almost always proven "corrective" (i.e. temporary). $SPX pic.twitter.com/rP2DkJtKCi— Steve Deppe, CMT (@SJD10304) March 8, 2022
$NYA pic.twitter.com/zCA6ZZt2Wp
— Ian McMillan, CMT (@the_chart_life) March 8, 2022
Tough to sustain high levels of implied vol. The tractor beam of mean reversion is like a universal constant. Past 10 years, this level 3sd above the mean of 17 has been a typical reversal point, ex-Covid crash. $VIXhttps://t.co/Bb28wBhBVq
— Jonathan Harrier, CMT (@jonathanharrier) March 8, 2022
The Solactive FANG Innovation Index is set to rebalance after market close on March 18, 2022 (effective open March 21, 2022). The Index is designed to track the price movements of the largest, tech-enabled stocks listed and headquartered in the U.S. https://t.co/qu6EmTXwlr
— MicroSectors (@msectors) March 8, 2022
More #gold. Up 3%+ for the day. Crazy things happening. pic.twitter.com/SOioAvJEyb
— jeroen blokland (@jsblokland) March 8, 2022
gold busting out this month could be important... here's the 20-year chart... pic.twitter.com/H7aArvQ1Ju
— David Cox, CMT, CFA (@DavidCoxWG) March 8, 2022
Fight of the Century pic.twitter.com/RDI0sc8bfG
— da Chart Life (@daChartLife) March 8, 2022
Last $BTC high was 119 days ago (Nov 9). Feels like forever, but not when put in the context of prior dips. The shortest time back to new highs was 145 days. The longest was 979. pic.twitter.com/uJ5Rufg4yf
— Liz Young (@LizYoungStrat) March 8, 2022
Last $BTC high was 119 days ago (Nov 9). Feels like forever, but not when put in the context of prior dips. The shortest time back to new highs was 145 days. The longest was 979. pic.twitter.com/uJ5Rufg4yf
— Liz Young (@LizYoungStrat) March 8, 2022
More new highs on RBOB gasoline $RB_F $UGA
$3.69 pic.twitter.com/cAih8TZMVX— Mike Zaccardi, CFA, CMT (@MikeZaccardi) March 8, 2022
— Kenneth Dredd (@KennethDredd) March 8, 2022
You’re all caught up now. Thanks for reading!
