Daily Chart Report 📈 Wednesday May 8, 2024
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Today’s Summary
Wednesday, May 8, 2024
Indices: Dow +0.44% | S&P 500 +0.00% | Nasdaq -0.04% | Russell 2000 -0.46%
Sectors: 3 of the 11 sectors closed higher. Utilities led for the second day, gaining +1.05%. Real Estate lagged, falling -0.94%.
Commodities: Crude Oil futures rose +0.78% to $78.99 per barrel. Gold futures inched lower by -0.08% to $2,322 per oz.
Currencies: The US Dollar Index rose +0.11% $105.50.
Crypto: Bitcoin fell -1.83% to $61,181. Ethereum fell -1.09% to $2,974.
Volatility: The Volatility Index fell -1.74% to 12.99.
Interest Rates: The US 10-year Treasury yield snapped a five-day losing streak, rising to 4.496%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
Unless it became an AI play, you dont want that sector to lead the race.
best 3 weeks return since November 2022 and YES…it is outperforming the S&P500 since the Oct. 2023 low!pic.twitter.com/tiFJe739qf
— conradseric, CMT, CAIA, CEFA (@conradseric) May 8, 2024
Today’s Chart of the Day was shared by Eric Conrads (@conradseric).
- The Utilities Sector ($XLU) continued higher for the sixth consecutive day, closing at its highest since January 2023. It’s risen in 14 of the past 16 sessions, outperforming the S&P 500 by +9% in that span.
- While $XLU remains -10% below all-time highs, it made a new 52-week high for the first time in 416 trading days yesterday, ending its longest streak without a 52-week high since 2009.
- $XLU is leading by a wide margin in Q2, up +7%, while the next best sector ($XLP) is barely positive. As Eric points out, the bulls don’t want to see a defensive sector like Utilities leading the race. Although, the S&P 500 is hovering less than 2% below record highs.
The takeaway: Utilities ($XLU) have led by a notable margin recently. Utilities often lead when the market is under pressure, but the market has been relatively calm lately.
Quote of the Day
“You should be far more concerned with your current trajectory than with your current results.”
– James Clear
Top Links
Silver Rally Testing Major Breakout Resistance! – Kimble Charting Solutions
Chris Kimble examines the outlook for Silver after an impressive rally.
Drop in Investor Optimism Could Spell Trouble – Schaeffer’s Investment Research
Rocky White looks at what the recent drop in bullish sentiment could mean for the S&P 500 in the coming months.
Let’s Unpack Why Apple Remains A Titan- Market Misbehavior
David Keller shares his thoughts on Apple ($AAPL).
Latin America: This Cycle’s Leader
JC Parets highlights the strength in Latin America
Top Tweets
4th best start to May for $SPX (+3% after 6 trading days): pic.twitter.com/SsKAgOCNZL
— Optuma (@Optuma) May 8, 2024
Today was the lowest full day SPY trading volume since 2019 as the algos shut down the market. pic.twitter.com/00obZuEW2d
— Mac10 (@SuburbanDrone) May 8, 2024
The S&P 500 is attempting to hovering around an ‘unchanged’ performance for the day, but the implied volatility continues to sink.
In fact, the $VIX is down 6 straight trading sessions, which is an infrequent period of consistent retrenchment as you can see here: pic.twitter.com/goxKqHflaL
— John Kicklighter (@JohnKicklighter) May 8, 2024
$VIX below 13. It hasn’t spent a ton of days below that level over the past year but before the April market volatility it spent a ton of time between 13 and 15 in a heavy gamma, low IV market rally from Nov23-Apr24: pic.twitter.com/W66cSs0fVf
— Options AI (@OptionsLearn) May 8, 2024
LOW VIX IS NOT A SELL SIGNAL FOR STOCKS
With VIX trading back down near 13, this data from UBS showing the average 3m forward return when VIX starts below 15 is interesting. It is not so much that low VIX leads to market weakness, but the fact that at market tops, we tend to… pic.twitter.com/LMxjGIFGDW
— Imran Lakha | Options Insight (@options_insight) May 8, 2024
Bouts of $XLU alpha are not uncommon pic.twitter.com/vZkl9M2A7H
— Mike Zaccardi, CFA, CMT
(@MikeZaccardi) May 8, 2024
Is it bad when Low Volatility $SPLV stocks like Utilities & Staples outperform higher Beta $SPHB stocks?
In the case of ’12 -’18 market, no
There were times when $SPLV strongly outperformed $SPHB & it had little effect on the overall mkt & it certainly wasn’t a “warning sign” pic.twitter.com/rebPnYDP0z
— Christian Fromhertz
(@cfromhertz) May 9, 2024
Your YTD returns…
Magnificent 7 $MAGS +19.7%
Gold $GLD +12.3%
S&P 500 $SPY +9.1%
Nasdaq 100 $QQQ +7.6%
Yes, gold has outperformed the S&P and Nasdaq YTD. That is not a typo. pic.twitter.com/2215skCXK8— David Keller, CMT (@DKellerCMT) May 8, 2024
It looks like a new trend is starting. Not a trend ending. #Gold pic.twitter.com/jGutdhU81g
— Against All Odds Research (@JasonP138) May 8, 2024
GDXJ just waiting. pic.twitter.com/73n6wwAKn8
— David Nicoski CMT (@davevermilion) May 8, 2024
Here’s where China ETF ranks on the volatility scale… neighbors with crypto, cannabis, miners. It’s loud on this block. pic.twitter.com/VvNKjbUDrj
— Todd Sohn (@Todd_Sohn) May 8, 2024
Airbnb $ABNB getting hammered in after-hours trading after beating on EPS, revenues, and guiding in-line
— Barchart (@Barchart) May 8, 2024
You’re all caught up now. Thanks for reading!
The post Daily Chart Report 📈 Wednesday May 8, 2024 appeared first on The Chart Report.
