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Today’s Summary
Wednesday, June 3rd, 2020
Indices: US Stocks closed higher with the Dow Jones Industrial Average advancing 527 points or 2.05%. The S&P 500 rose for the fourth straight day, gaining 1.36%. The Nasdaq moved higher by 0.78% to close just a hair below an all-time high. Small-Caps outperformed with the Russell 2000 rising 2.39%.
Sectors: 10 out of the 11 sectors closed higher. Industrials led, gaining 3.90%. Health Care lagged, slipping 0.19%.
Commodities: The July Crude Oil futures contract rose 1.30% to $37.29 per barrel. Gold futures dropped 1.68% to $1,705 per ounce.
Currencies: The US Dollar Index closed lower for the seventh day in a row, falling 0.38%.
Interest Rates: The US 10-year Treasury yield jumped to 0.747%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
This is going to go down as the greatest 50-day rally ever for the S&P 500 Index.
Take note, the previous 7 other largest 50-day rallies saw stocks higher 6- and 12-months later every single time. pic.twitter.com/y273jP9BVk
— Ryan Detrick, CMT (@RyanDetrick) June 3, 2020
Today’s Chart of the Day was shared on Twitter by Ryan Detrick of LPL Financial Research (@RyanDetrick). Today marked the 50th day since the March 23rd low. The S&P 500 has surged 37.70% since then (39.57%, including today). Ryan points out that this has been the best 50-day rally in the history of the S&P 500. The table shows the seven other largest 50-day gains, along with the 1, 3, 6, and 12-month forward returns. Ryan notes that the S&P 500 was higher 6-12 months later every single time. The short-term and long-term returns are positive across all four-time frames, with a median gain of 1.1% one month later, and a median gain of 19.4% one year later. It’s easy to think stocks have come too far too fast with the S&P 500 up nearly 40% in less than three months. However, history shows us that sharp 50-day rallies have lead to further gains.
Quote of the Day
– Colin Powell (Former US Secretary of State)
Top Links
Small Caps Testing Tripple Breakout Price Point – Kimble Charting Solutions
Chris Kimble points out that the Russell 2000 is currently testing a key level.
Weak US Dollar May Lead Copper, Yields, and EEM Higher – SunSoft Analytics
Bhagyashree Urdhwareshe takes a look at the areas of the market that will likely benefit from a weaker US Dollar.
Dollar Weakness as S&P Climbs Wall of Worry – The Final Bar
In this episode of the Final Bar, Peter Brandt joins David Keller to discuss some noteworthy technical developments, including the weakness in the US Dollar.
Yen/Bonds/Gold Show Their Hands – All Star Charts
Tom Bruni examines what safe-haven assets are telling us about risk appetite right now.
Echos of 2004 Emerge Follow Crash of 2020 – Andrew Thrasher
Andrew Thrasher draws some comparisons between the current market environment and 2004 in regards to market sentiment.
Top 10 Tweets
The Nasdaq Composite is within 1.5% of its 52-week high after a 30% plunge (from a 52-week high). It's done this 4 other times.
It took 13, 5, 2, and 12 days before it closed at a new high (it never failed). It added at least another 6% over the next 3 months every time.
— SentimenTrader (@sentimentrader) June 3, 2020
$QQQ wow. A perfect V and closed just below February lows. There's no way I would have guessed we'd be here now a couple months ago pic.twitter.com/yCD9sT9GfU
— Gregory Krupinski (@G_krupins) June 3, 2020
Meanwhile, the blue-chip Dow is significantly lower than its record high and contemplating the 200-day moving average directly above pic.twitter.com/6ZvOwAuSUj
— John Kicklighter (@JohnKicklighter) June 3, 2020
Some would say this is an area of important historic price action (behavior!) among market participants on the Russell 2000…$IWM $RUT pic.twitter.com/DaGCzM7H0I
— Ian McMillan, CMT (@the_chart_life) June 3, 2020
Today is Day 50 from the March 23 low, and $SPX is up 39%, the largest 50-d gain in more than 40 years. Here all 50-d gains of +20% since 1980 and what happened in the following weeks/months pic.twitter.com/JKBEQnLBo0
— ukarlewitz (@ukarlewitz) June 3, 2020
Treasury yields, stock prices & copper: the slope varies, but all heading up and to the right over the past two months. pic.twitter.com/oT0GIi0hC4
— Willie Delwiche, CMT, CFA (@WillieDelwiche) June 3, 2020
Bonds $TLT $ZB_F breaking out of tight range lower $ZB_F has been coiled…. pic.twitter.com/jRNxLEmQCk
— Christian Fromhertz (@cfromhertz) June 3, 2020
Dollar Index $DXY.
Approaching Tactical oversold, while the Long-term uptrend remains intact.
Most selloffs into FOMC dates marked Short-term or Intermediate lows in the Dollar – *particularly* since the 2018 uptrend began.
The next Fed meeting is in one week. pic.twitter.com/ELEm8eJlBV
— Macro Charts (@MacroCharts) June 3, 2020
A rare SpongeBob SquarePants formation in Bitcoin today.
Bullish. pic.twitter.com/uD5EKa2Y7o
— Tracy Alloway (@tracyalloway) June 3, 2020