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Today’s Summary
Friday, June 5th, 2020
Indices: US Stocks ended the week on a positive note. The Dow Jones Industrial Average jumped 829 points or 3.15%. The S&P 500 rose 2.62%. The Nasdaq gained 2.06%, and closed at an all-time high for the first time since February. The Russell 2000 outperformed, closing up 3.79%.
Sectors: All 11 sectors closed higher by at least 1%. Energy led significantly, surging 7.43%. Utilities lagged but still moved higher by 1.27%.
Commodities: The July Crude Oil futures jumped 5.72% to $39.55 per barrel. Gold futures dropped 2.25% to $1,689 per ounce.
Currencies: The US Dollar Index snapped its eight-day losing streak, rising 0.20%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.902% – its highest level since March.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Semis $SMH new all-time highs – a key sector to lead the way. pic.twitter.com/019r7Hgb4K
— Larry Tentarelli, Blue Chip Daily (@LMT978) June 5, 2020
Today’s Chart of the Day was shared on Twitter by Larry Tentarelli (@LMT978). It’s a daily bar chart of the Semiconductor ETF ($SMH) over the past 14 months. The Nasdaq closed at an all-time high today for the first time since February. Perhaps more importantly, Semiconductors printed an all-time high as well. Semiconductors are the chips that go in virtually every electronic device. Because of their widespread use, technicians often look to Semi’s as a leading indicator. Some even argue Semi’s have become a better economic bellwether than Transportation stocks over the decades. Seeing this key industry group leading the charge, and breaking out to new all-time highs is yet another box that the bulls can now check off their checklist. Remember, you can’t have a party without chips!
Quote of the Day
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
– William Arthur Ward (Writer)
Top Links
What Happened in the Markets This Week? – NYSE
In this video, Market Maker, Jay Woods gives a quick recap of this week’s price action in stocks.
Speculation Mode: On – Macro Charts
Here’s an in-depth analysis of the current market environment from Macro Charts.
The Equity Put/Call Ratio Hit a Six-Year Low: Should We Be Concerned? – The Street
Helene Meisler takes a look at what has happened the past six times that the Put/Call ratio has been lower than 40%.
Yesterday’s Losers Are Today’s Winners – All Star Charts
Steve Strzza points out that the industry groups that were hit hardest during the crash have been outperforming in recent weeks.
Where Do We (Investors) Stand – David Cox
In this quick video, Portfolio Manager, David Cox highlights some noteworthy technical developments going on across the markets.
Top 10 Tweets
Market Mood This Week: RISK-ON
– 3rd up week for $SPX
– $NDX closes at record high
– Bonds have worst wk of the yr
– New rotation starting?Thoughts on Week Ahead
– $SPX +40% into today…
– Got good news jobs report 'right'
– 'Sell the news' catch-up?
– WEEKEND!— Abigail Doolittle (@TheChartress) June 5, 2020
Nasdaq 100 trading above its record high? Underperforming the major averages though today.
Sharper and shorter. V-shaped recovery, indeed✌️ pic.twitter.com/JkBav26cPl
— Kriti Gupta (@KritiGuptaNews) June 5, 2020
Small and Midcaps join the party, closing above their respective 200 week EMA.$IWM $MDY pic.twitter.com/G5YKRW4hK5
— Shane C. Murphy (@murphycharts) June 6, 2020
SPs looking above the major structural point from the beginning of the year. pic.twitter.com/37JR45Qm6R
— Linda Raschke (@LindaRaschke) June 5, 2020
The day after our RenMac Thrust indicator confirms the market's broad expansion, our Put/Call indicator flashes the same warning it did in late Jan-20 (perfect). Momentum is about 5x more important than sentiment. Today momentum is about 5x better today than in Jan-20. pic.twitter.com/rGA5F0GfnB
— RenMac: Renaissance Macro Research (@RenMacLLC) June 5, 2020
Best to ignore put/call complacency in some environments. Learned it the hard way. $SPX #sentiment pic.twitter.com/VFFXb51Gtm
— Mark Ungewitter (@mark_ungewitter) June 5, 2020
If gold breaks 1680, this consolidation has resolved lower…. $GC_F $GLD pic.twitter.com/VZsCsMP9CC
— J.C. Parets (@allstarcharts) June 5, 2020
$GDX with the hammer throw from the 50! pic.twitter.com/abedGVEZB9
— Dan Russo, CMT (@DanRusso_CMT) June 5, 2020
The April 9th Covid 19-related drop and gap in WTI Crude Oil is “in play”. We’re short sellers of WTI Crude Oil in the event of a gap fill on Monday, Tuesday or the day/days thereafter. pic.twitter.com/XzNMduiPs4
— Carter Braxton Worth (@CarterBWorth) June 5, 2020
The last time the S&P 500 was up at least 3% for three straight weeks was in September 1982.
— Bespoke (@bespokeinvest) June 5, 2020