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Today’s Summary
Friday, May 1st, 2020
Indices: US Stocks ended the week on a sour note with the Dow Jones Industrial Average closing lower by 622 points or 2.55%. The S&P 500 and Nasdaq dropped 2.81% and 3.20%, respectively. Small-Caps underperformed with the Russell 2000 falling 3.83%.
Sectors: All 11 sectors closed lower for the second day in a row. Consumer Staples led, but still moved lower by 1.10%. Energy lagged, dropping 5.66%.
Commodities: The June Crude Oil futures contract moved higher by 4.35% to $19.66 per barrel. Gold futures rose 0.89% to $1,709 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The US 10-year Treasury yield inched lower to 0.616%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
How about these island tops in semi's, banks and industrials $SOX $BKX $XLI pic.twitter.com/7gWyPfXwzt
— Aaron (@ATMcharts) May 1, 2020
Today’s Chart of the Day was shared on Twitter by Aaron Jackson (@ATMcharts). Aaron shows the daily candlestick charts of three key industry groups; Semiconductors ($SOX), Banks ($BKX), and Industrials ($XLI). Aaron points out that all three are sporting a bearish candlestick pattern known as an Island Reversal. An Island Reversal is a candlestick pattern that is formed by two separate gaps, leaving an isolated cluster of candles or ‘island.’ Island Reversals often mark a change in the intermediate-term trend. In this case, price gapped higher on Monday, consolidated for four days, and then gapped lower today. Semis, Banks, and Industrials are all vital areas of the market. The fact that all three are exhibiting this bearish candlestick pattern is not an encouraging development for the Bulls.
Quote of the Day
“Everyone you will ever meet knows something you don’t.”
– Bill Nye (The Science Guy)
Top Links
Markets Still Vulnerable Here: Market Technician – CNBC
Jonathan Krinsky of Bay Crest Partners made an appearance on CNBC today to share his technical outlook on the markets.
The Worst Six Months are Even Worse During (So Far) Bad Years – SentimenTrader
Jason Goepfert takes a look at how “Sell in May & Go Away” has panned out in years when the S&P 500 was down at least 5% heading into May.
Monthly Candlestick Review: Crash Edition – All Star Charts
With April now in the books, JC Parets reviews the monthly candlestick charts of some of the most important asset classes around the globe.
Looking for Strength and Leadership Beyond the S&P 500 – Baird
Here’s a research note from Willie Delwiche of Baird, in which he provides an in-depth analysis of the current market environment.
Stock Market Video Analysis for Week Ending 5/1/20 – AlphaTrend.net
In this video, Brian Shannon lays out key some levels of interest to keep an eye on going into next week.
Top 10 Tweets
$SPX down 2 days in a row. Hasn’t been down on Day 3 since March 9. Looking at you, Monday
— ukarlewitz (@ukarlewitz) May 1, 2020
$SPX – with 20 mins. left in the session the weekly candle looks ominous. Forming at the 62% Fib retracement level of this year's range, it could be categorized as either a spinning top or a gravestone doji. Both candles unable to hold upper levels and clearly bearish. pic.twitter.com/2QTmEZjsKB
— Rob Moreno (@rightviewrob) May 1, 2020
Aaaaand we're back to the 50 $SPX $SPY pic.twitter.com/4ocd212OPX
— Drew Wells, CMT, CIMA® (@DrewTheCharts) May 1, 2020
SPX Retracement Rally "Capped"? pic.twitter.com/DT48HuOgxS
— Nautilus Research (@NautilusCap) May 1, 2020
Equal weight back to getting obliterated so there’s that. pic.twitter.com/6b8QDLrfCb
— Steve Deppe, CMT (@SJD10304) May 1, 2020
Re growth vs. value stocks, it becomes very sector-dependent, & can be as simple as financials vs. technology. For value stocks to (finally) outperform, financials are most likely going to have to outperform. The chart below shows the equal-weight financials sector ETF vs.
1/ pic.twitter.com/gnkHO7ReHP— Grey Matter (@TheAngryLiberal) May 1, 2020
UK FTSE 100 Index breaks support with volume picking up!
Down moves with strong volume, up moves with weak volume. NOT bullish. pic.twitter.com/KQpSI3S9Ot— James Brodie CMT (@jamesrbrodie) May 1, 2020
VIX curve giving us a friendly reminder that US the election is very much so a risk event. Behold, the October kink is back. pic.twitter.com/4CP1QTF4pt
— Dani Burger (@daniburgz) May 1, 2020
$NG_F Attempting to move out of this 4-month base. Do we finally break above $2? pic.twitter.com/KGPIH5hrtu
— Ian McMillan, CMT (@the_chart_life) May 1, 2020
Dow Jones in the aftermath of the 1906 San Francisco earthquake – there was the first bounce, which rolled over when the true cost emerged.
Jesse Livermore stayed short Union Pacific with millions in borrowed money, crushed it, then played the real recovery months later. pic.twitter.com/xvGT40U2el
— Downtown Josh Brown (@ReformedBroker) May 1, 2020