Sponsored By:
Today’s Summary
Monday, June 8th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 461 points or 1.70%. The S&P 500 rose 1.20% and is now positive year-to-date. The Nasdaq underperformed but still moved higher by 1.13%. Small-Caps outperformed, with the Russell 2000 gaining 1.97%.
Sectors: All 11 sectors closed higher. Energy led significantly for the second straight session, jumping 4.50%. Materials lagged but still inched higher by 0.13%.
Commodities: Crude Oil futures dropped 3.44% to $38.19 per barrel. Gold futures rose 1.31% to $1,705 per ounce.
Currencies: The US Dollar Index slipped 0.26%.
Interest Rates: The US 10-year Treasury yield fell to 0.875%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
They say no such thing as a "triple top". Tesla looks ready to "drive" through bullish ascending triangle, on way past very round 1000 number. $TSLA pic.twitter.com/wYLj1zr6oX
— Douglas Busch CMT (@chartsmarter) June 8, 2020
Today’s Chart of the Day was shared on Twitter by Doug Busch (@chartsmarter). It’s a daily candlestick chart of Tesla ($TSLA) over the past six months. Tesla closed at an all-time high of $949.92 today. Doug points out that price has formed a bullish ascending triangle pattern, with horizontal resistance around ~$950. Price failed at this level twice in February, but as Doug points out, “triple tops” aren’t very common. Using the height of the triangle and adding it to the breakout level gets you a measured move price target around $1,600. This could be the start of another leg higher for Tesla if price can break out, and hold above that key $950 level in the near-term.
Quote of the Day
“Luck is not a business model.”
– Anthony Bourdain
Top Links
IPOs Surging – Bespoke
Bespoke takes a look at the impressive outperformance from newly listed companies.
The Market Marches On – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss some noteworthy technical developments, including the recent rotation into Small-Caps and Value stocks.
New All-Time Highs – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff highlight the strongest stocks, trends, and themes across the market right now.
Nine Wins in Eleven Sessions – Crossing Wall Street
Eddy Elfenbein points out that the cyclical sectors, like Energy, Industrials, Materials, and Financials, have outperformed the S&P 500 over the past month.
Time for Palladium to Reaffirm Its Leadership? – All Star Charts
Tom Bruni of All Star Charts shares his thoughts on Palladium.
Top 10 Tweets
Just another manic (green) Monday.
The S&P 500 has closed up on the first day of the week for seven straight weeks, its longest streak since May 2017.
— Callie Cox (@callieabost) June 8, 2020
$SPX now green for 2020 pic.twitter.com/OboKgnEPft
— ? I. Vodenitcharov CFA CMT (@iv_technicals) June 8, 2020
SPX +40% Swings. pic.twitter.com/ilESDHdnLh
— Nautilus Research (@NautilusCap) June 8, 2020
For weeks the market’s recovery looked “off” because it was led by a handful of secular growers. With small caps & cyclicals coming back to life, the leadership has broadened & the dispersion between large & small caps, growth & value, winners & losers has narrowed—a good sign. pic.twitter.com/l3FMTRJKm4
— Jurrien Timmer (@TimmerFidelity) June 8, 2020
sure, I too, noticed the strong week for the Dow vs. the Nasdaq but its premature to starting breaking out the streamers and horns yet pic.twitter.com/HuAIAt5GPm
— David Cox, CMT, CFA (@DavidCoxWG) June 8, 2020
Quality schmality:
Stocks with weak balance sheets have been outperforming those with strong balance sheets, & lately have seen largest relative gains since 2009@bloomberg
[Past performance is no guarantee of future results] pic.twitter.com/imr3akphU4— Liz Ann Sonders (@LizAnnSonders) June 8, 2020
Chart Of The Day: "Fearless" – CBOE Equity Put:Call Ratio (5-day ave) @ 2nd lowest level on record (April 2010) $SPX $SPY pic.twitter.com/XMIIfUyc3o
— Dana Lyons (@JLyonsFundMgmt) June 8, 2020
One of the charts from last nights Thrasher Analytics letter…
A flattening $VIX curve between spot and 3-month vol has created a divergence with the equity market. pic.twitter.com/kbAf1U8ImK— Andrew Thrasher, CMT (@AndrewThrasher) June 8, 2020
Just your standard failed breakdown. $CL_F pic.twitter.com/1sNp3Ws2qA
— Ian McMillan, CMT (@the_chart_life) June 8, 2020
Hertz is in a textbook WTF pattern this year:
stock falls 97%
company declares bankruptcy
stock rises 830% pic.twitter.com/ZPRW63FJSy
— Ben Carlson (@awealthofcs) June 8, 2020