Sponsored By:
Today’s Summary
Friday, March 20th, 2020
Indices: US Stocks closed lower in today’s session, ending the worst week on Wall St. since 2008. The Dow Jones Industrial Average dropped 913 points or 4.55%. The S&P 500 and Nasdaq fell 4.34% and 3.79%, respectively. The Russell 2000 closed lower by 4.24%.
Sectors: 10 out of the 11 sectors closed lower. Energy was the only sector to close higher, rising 0.98%. Utilities lagged for the second day in a row, tumbling 7.93%.
Commodities: Crude Oil futures plunged 12.66% to $22.63 per barrel – the lowest level since 2002. Gold futures gained 1.91% to $1,501 per ounce.
Currencies: The US Dollar Index fell 0.79%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.938%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
a lot of people are asking about these tiny little positive momentum divergences in many Stock Indexes & Sectors, but I don't think the question is: "What will happen if they are?" The real question is what will happen if they are NOT?When "divergences" fail, THAT is the signal pic.twitter.com/YiHIYuY9F3
— J.C. Parets (@allstarcharts) March 20, 2020
Today’s Chart of the Day was shared on Twitter by JC Parets (@allstarcharts). As folks search for a bottom in stocks, hopeful bulls have been salivating at the sight of the bullish momentum divergences in some of the major sectors and indices. A bullish momentum divergence occurs when prices in a downtrend make a lower-low, while RSI makes a higher low. When this happens, it indicates that sellers are losing momentum and that prices could mean-revert higher. JC emphasizes the importance of being patient and waiting for price to confirm these divergences by closing above the initial low. Until that happens, these are simply potential bullish momentum divergences. JC suggests that traders consider the possibility that price does NOT confirm these potential momentum divergences, which would be a sign that stocks could fall even further. To hear more of JC’s thoughts on the market, check out the interview he gave to BNN Bloomberg today.
Quote of the Day
“Bear markets never end on good news.”
– Larry Williams (Technical Analyst)
Top Links
NYSE Floor Talk with Jay Woods – NYSE
NYSE Executive Floor Governor, Jay Woods, weighs-in on some of the historic price action we saw this week and discusses next week’s floor closing.
Two Ways to Fight FOMO – Sierra Alpha Research
David Keller offers some advice on how to avoid letting the “Fear of Missing Out” (FOMO) influence your trading and investment decisions.
How Markets Bottom – LPL Financial Research
The team at LPL Financial Research examines past market bottoms and points out that markets tend to retest or even slightly break through former lows before making any meaningful recovery.
Doc Copper, Crude Oil & Stocks Testing Must Hold Support – Kimble Charting Solutions
Here’s a note from Chris Kimble, in which he points out that the S&P 500, Crude Oil, and Copper are all testing crucial support levels.
Weekend Stock Market Recap and Sector Analysis – The Trade Risk
In this video, Evan Medeiros recaps this week’s price action in some of the major sectors and indices.
Top 10 Tweets
The S&P 500 is now down 32% from all-time highs seen a month and a day ago
This is now the 12th bear mkt in US stocks of -30% or worse going back to 1928
The good news: there are 10 that were worse than this one
The bad news: this one's not over yet
— Ben Carlson (@awealthofcs) March 20, 2020
*S&P 500 FALLS 15% IN BIGGEST WEEKLY DROP SINCE OCTOBER 2008
*U.S. STOCKS FALL 4.4% TO LOWEST IN THREE YEARS
As bad as stock finish, credit was slammed worse. One metric … HYG (High Yield ETF) had another "tough day." pic.twitter.com/An5HhcTYeK
— Jim Bianco (@biancoresearch) March 20, 2020
#RelativeStrength is little comfort in a bear market. But dang! $NDX leadership is impressive. pic.twitter.com/AWAmm7EcEm
— Mark Ungewitter (@mark_ungewitter) March 20, 2020
As of this week’s low of 2281, the SPX has declined 32.8% from the high. pic.twitter.com/2aTEASai2P
— Jurrien Timmer (@TimmerFidelity) March 20, 2020
near term VWAP levels of interest for $SPY
also notice how the declining 5DMA (orange) has prices trapped
Red- 3/9 gap
Black – 3/12 gap
Blue- WTD
Green- from low pic.twitter.com/YjgY7nEdaO— Brian Shannon, CMT (@alphatrends) March 20, 2020
1-month sector performances pic.twitter.com/em450i80nT
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) March 20, 2020
The S&P 500 earnings yield rises toward a 50-year high versus 10-year Treasury yields, as @TheOneDave points out in his chart of the day. This could make stocks look really attractive. But it also could suggest earnings expectations need to fall dramatically. pic.twitter.com/swtggKnssS
— Lisa Abramowicz (@lisaabramowicz1) March 20, 2020
The U.S. Dollar is on pace for its biggest weekly gain (+4.2%) and 2-week gain (+7.05%) since 2009. Upward pressure continues as the scramble for dollars grows. At what point do global policy makers address this pressing issue? $DXY pic.twitter.com/K0YsHeBog7
— Michael McKerr (@MikeMcKerr_TDA) March 20, 2020
Another wild day in #oil. Crude oil down almost 13%. pic.twitter.com/bOrTF6ia2f
— jeroen blokland (@jsblokland) March 20, 2020
Hyatt. $H
From $24 to $50 in 48 hours.
The bull market is already done & dusted! ? pic.twitter.com/wV8i7m2xJe
— Tiho Brkan (@TihoBrkan) March 20, 2020