- Markets careened lower today, just one day removed from a solid rally after the interest rate hike decision
- The S&P 500 fell 3.56% and only 4% of stocks in that index managed to close in positive territory
- The Dow Jones Industrial Average fell 3.12%, shedding over 1,000 points in the process
- The NASDAQ Composite was the worst performer, it collapsed by 5% (its worst day since June 2020) and hit a new yearly low
- The small cap Russell 2000 acted as expected on a vigorous “risk-off” day; it fell 4.04%
- All four major U.S. equity indices have strongly bearish intermediate postures and are trading below falling 30 day moving averages
- All four major U.S. equity indices had above average high-to-low trading ranges, as today’s losses completely erased all of yesterday’s above average gains
- The Dividend Yield factor once again finds itself atop the Factor Selector tool; Momentum continues to reside at the bottom
- The U.S. Dollar (+0.84%) and 10 Yr. U.S. Treasury Yields (ended at 3.07%) had another solid day; both have strongly bullish postures
- Oil also performed admirably; it finished higher by 0.32% and has a strongly bullish posture; gold sold off by 0.38% and has a bearish posture
- Emerging Markets stocks (-3.69%) and Developed Foreign stocks (-3.22%) both struggled in the face of a rising Dollar; both have bearish postures
- Bitcoin got blasted (-8.21%) as it fulfilled upon its role as a speculative “risk-on” asset class (rather than a perceived safe have asset); it is strongly bearish
- Energy is atop the Sector Selector and is the only sector with a strongly bullish intermediate posture; it held up reasonably well today with a loss of just 1.50%
- Utilities are in the third place position on the Sector Selector and were today’s best relative performers (-1.02%)
- Consumer Discretionary got hit particularly hard (-5.60%) today due to significant losses from Tesla and Amazon; Technology also sold off hard (-4.81%)
- Our trade application example featured selling a put on the NASDAQ 100 ETF (QQQ) due to it currently having just its 2nd oversold weekly cluster signal in the last decade, with the only other previous example leading to a bullish bounce
Here's the intro of today's #MarketOutlook video from @MarketScholars
— 𝐁𝐫𝐚𝐧𝐝𝐨𝐧 𝐕𝐚𝐧 𝐙𝐞𝐞 (@BrandonVanZee) May 6, 2022
Watch the full video for free here:https://t.co/dM4A7BNtg2
Mentioned: $SPY $SPX $QQQ $IWM $RUT $UUP $TNX $TLT $EEM $EFA $USO $GLD $BTC $VIX $TSLA $AAPL $GOOGL $MSFT $BRK.B $TXN $AMZN $ALB $ABBV $TWTR $QQQ pic.twitter.com/m4MmSvsMja
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