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Today’s Summary
Friday, April 24th, 2020
Indices: US Stocks ended the week on a positive note with the Dow Jones Industrial Average advancing 260 points or 1.11%. The S&P 500 and Nasdaq gained 1.39% and 1.65%, respectively. The Russell 2000 rose 1.56%.
Sectors: All 11 sectors closed higher. Technology led, gaining 2.12%. Energy lagged but still inched higher by 0.23%.
Commodities: The June Crude Oil futures contract rose 2.67% to $16.94 per barrel. Gold futures fell 0.56% to $1,736 per ounce.
Currencies: The US Dollar Index slipped 0.14%.
Interest Rates: The US 10-year Treasury yield was unchanged and currently sits at 0.601%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Contrarian data point – $Energy stocks starting to price in recovery. Despite front month $Crude collapsing this week, ZERO stocks in the $SPX Energy Sector traded to a 52-week low. @StrategasRP pic.twitter.com/ZRtkq1LnPd
— Chris Verrone (@verrone_chris) April 24, 2020
Today’s Chart of the Day was shared on Twitter by Chris Verrone of Strategas Research (@verrone_chris). It’s a chart of the S&P Energy Sector over the past year and a half, along with the percentage of stocks within the sector that are trading at 52-week lows. The big headline this week was the collapse of the May Crude Oil futures contract on Monday. Despite this development, Energy stocks held up surprisingly well. Chris notes “Zero Energy stocks traded to a 52-week low this week. Are stocks discounting the worst of the Oil crisis has passed?” The sector is still in a long-term downtrend and could easily continue lower from here. However, this sort of price action suggests that fears surrounding the impact of negative Oil prices may be a bit overblown.
Quote of the Day
– Thomas Jefferson (3rd US President)
Top Links
What Happened in the Market this Week? – NYSE
In this video, Market Maker, Jay Woods discusses this week’s price action in stocks.
Why Volatility Suggests Further Weakness May be in Store – Andrew Thrasher
Andrew Thrasher explains that stocks could be in for further weakness if the Volatility Index ($VIX) remains elevated above the 30th percentile of its one-year range.
High Low Friday 4/24/20 – Dana Lyons
Here’s a quick read from Dana Lyons that highlights a few noteworthy new highs and lows across the markets.
Are Gold and Silver Mining Stocks Ready for Some “Breaking” Out News? – Kimble Charting Solutions
Chris Kimble points out that the Gold and Silver Miners Index, $XAU, is attempting a long-term breakout.
Stock Market Video Analysis for Week Ending 4/24/20 – AlphaTrends.net
Here’s Brian Shannon’s weekly video where he lays out some key levels of interest to keep an eye on next week.
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Sunday, April 26th, 10 am – 2:30 pm EST
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Top 10 Tweets
The S&P 500 hasn’t gone two consecutive days without a move greater than or equal to 1% since February 20.
That’s 64 calendar days, the longest such streak since December 2008 (and September 1932).
(…as if you needed another stat to show how chaotic stocks have been)
— Callie Cox (@callieabost) April 24, 2020
One of my all-time favorite long term charts.
Hat tip to @SSuttmeier pic.twitter.com/5WcHThcLNa
— Mark C (@Stockdoc118) April 24, 2020
Not a bad month. $SPX $INDU $COMP via @KoyfinCharts pic.twitter.com/qft9UhZtkN
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) April 24, 2020
The S&P500 closed ~1% above its 50 day MA (2,808) after holding ascending 21 day EMA support (2,740) on Tuesday. Continued upward consolidation could point towards test of supply at 61.8% retrace (2,935). MACD now slightly > 0 and volatility exited backwardation. Big week ahead. pic.twitter.com/BHIgQrTco7
— Michael McKerr (@MikeMcKerr_TDA) April 24, 2020
The percentage of stocks above the 200-day SMA remains seriously subdued. Less than 20% of $SPX stocks, and less than 15% of $MID and $SML stocks. These are not bull market numbers. pic.twitter.com/jC56i8QJhJ
— Arthur Hill, CMT (@ArthurHill) April 24, 2020
Similar to mid-Feb, we have stocks, bonds, gold all in short-term uptrends. At least one of these has got to give. Weight of the evidence suggests stocks for me. $SPX $SPY $GLD $TLT $USO pic.twitter.com/8R8Xf3L1D6
— David Keller, CMT (@DKellerCMT) April 24, 2020
Euro gold has vastly outperformed 10-year German bunds since yield went durably negative. Coming to a theater near you? pic.twitter.com/KQb3xBfZX1
— Mark Ungewitter (@mark_ungewitter) April 24, 2020
If I paid much attention to these global ETFs: Mexico, Brazil, Singapore, I would be bringing out the razor blades. pic.twitter.com/m9WwzbXA9D
— Linda Raschke (@LindaRaschke) April 24, 2020
Corporate insiders always are long their own stock. So they sell more than they buy. However last month, corporate insiders bought more of their own stock than during any other month since 2018 https://t.co/XxCTMwCfa0 pic.twitter.com/vqCxku9iIS
— Joe Weisenthal (@TheStalwart) April 24, 2020
$JCP JC Penny is literally worth pennies pic.twitter.com/vkjTBs9CX4
— Jack (@alphacharts365) April 24, 2020