The Weekly S&P500 #ChartStorm

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Weekly S&P500 ChartStorm - 17 April 2022

chartstorm.substack.com

Weekly S&P500 ChartStorm - 17 April 2022

This week: risk-driver review, check on tech, retail investor sentiment, the hidden bear market, utility of utilities, agribusiness on the moove, muddy macro, asset valuations...

Callum Thomas
Apr 17, 2022
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Weekly S&P500 ChartStorm - 17 April 2022

chartstorm.substack.com

Welcome to the Weekly S&P500 #ChartStorm. The Chart Storm is a selection of 10 macro/market charts which I hand pick from around the web and post on Twitter.

The charts focus on the S&P500 (US equities); and the various forces and factors that influence the outlook - with the aim of bringing insight and perspective.

Hope you enjoy!


This week’s edition is Sponsored by:  Capital Market Laboratories

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1. Correction-Drivers Update:

-EPOL [Poland ETF] (geopolitics proxy): at a stalemate for now

-LQD [IG Credit ETF] (credit/rates): new lows as bond yields spike further

-ARKK [New Tech Fund] (tech burst): drifting further lower

Market itself just resting at support (and below both the 50 & 200dma).

Source:  @Callum_Thomas


2. Amazon vs Commodities… Cycle has shifted: unfriendly regime for tech.

Source:  @exposurerisk


3. The rise and rise of tech... Permanently higher plateau?

Source:  @Marlin_Capital


4. Retail Investor Sentiment: Decent correction in sentiment as measured by this indicator, but it’s still quite far from the bottom end of the range.

Source:  TD Ameritrade Investor Movement Index


5. The hidden bear market... The headline index itself has not been much to get excited about either way, but under the surface there is a tell-tale sign of weakness and basically for all intents and purposes a hidden bear market.

Source:  @WillieDelwiche


6. Utilities:  Turns out Utilities... have utility in a down market.

(and extra informative that they are outperforming while bond yields are surging)

Source:  @honeystocks1


7. Agribusiness on the moove:  Agribusiness ETF breaking out vs the S&P500 after an extended period of chewing its cud, so to say.

Source:  @AdaptivCharts


8. Supply/Cost Problems:  The supposably transitory problems of supply chain disruption/shortages/covid/rising costs is still to this day very clearly a major problem for business, based on what companies are saying during their earnings calls.

Source:  FactSet via @PriapusIQ


9. Economic Forecaster:  The famous and clever Economist, Dr S&P500, is forecasting a slump in the ISM manufacturing PMI.

Source:  @t1alpha


10. Asset Valuations: Commodities the least dirty shirt?

Source:  @topdowncharts from The 12 Charts to Watch in 2022 [Q2 Update]


BONUS CHART >> got to include a goody for the goodies who subscribed.

Cyclicals vs Defensives:  US cyclicals vs defensives have pushed deeper into new lows. Similarly, the gradual decline for EAFE has accelerated, and EM appear to have put in a lower high. All-up, around the world, cyclicals vs defensives have gone from a source of strength to a source of weakness.

And when you zoom out at the global level it looks very clear: this is not a bullish chart. At best maybe markets go sideways, but this is not a situation where the macro/value backdrop is at best (expensive valuations, high inflation, stumbling growth, tightening monetary policy).

We’ve just been through a period of historical excess, and as the tides come in, so do they go out. Sorry if this is too bearish for you, but I just look at the charts and say what I see. When they facts change, my opinion will change.

—

Best regards,

Callum Thomas


My research firm, Topdown Charts, has a new entry-level Substack service, which is designed to distill some of the key ideas and themes from the institutional research service to provide the same high quality insights at a more accessible price.

Give it a try and let me know what you think

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Weekly S&P500 ChartStorm - 17 April 2022

chartstorm.substack.com
5 Comments
Alan Forde
Apr 17, 2022Liked by Callum Thomas

Moo - who knew? (Didn’t know about that ETF, thus not it’s performance)

Thank you for that and (as always) your weekly view.

Watching “the tides” from Canada, chi-miigwech, Alan

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FXMacroGuy
Writes fx:macro
Apr 17, 2022Liked by Callum Thomas

I always find at least one thing from your Chartstorms that I'm going to put on a watchlist or save as a bookmark. This time it was the MOO ETF.

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