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Today’s Summary
Tuesday, June 9th, 2020
Indices: US Stocks closed lower in today’s session. The Dow Jones Industrial Average snapped its six-day winning streak, falling 300 points or 1.09%. The S&P 500 slipped 0.78%, while the Nasdaq rose 0.29%. The Russell 2000 underperformed, dropping 1.94%.
Sectors: Technology was the only sector to close higher, gaining 0.47%. Energy lagged, falling 3.76%.
Commodities: Crude Oil futures rose 0.52% to $38.39 per barrel. Gold futures moved higher by 0.86% to $1,720 per ounce.
Currencies: The US Dollar Index dropped 0.33%.
Interest Rates: The US 10-year Treasury yield fell to 0.825%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The bottom-up analysts always get left in the dust coming off a low. >60% of stocks now trading ABOVE their average analyst price target… check the 2003 and 2009 lows for comps. $SPX, @StrategasRP, #stocks pic.twitter.com/BbaUaKYsfS
— Chris Verrone (@verrone_chris) June 9, 2020
Today’s Chart of the Day was shared on Twitter by Chris Verrone of Strategas Research (@verrone_chris). Chris highlights another historical extreme; 61% of stocks in the S&P 500 are trading above their average analyst price target. He notes, “The bottom-up analysts tend to be late near market lows.” Readings over ~37% from this indicator are rare and have only occurred twice in the past two decades – 2003 & 2009. Both instances occurred a few months after a major secular low. If stocks continue to trade above expectations, it wouldn’t be surprising to see analysts ratchet up their price targets in an attempt to save face. A potential flurry of analyst upgrades could be yet another bullish tailwind for stocks over time.
Quote of the Day
“Only the game, can teach you the game.”
– Jesse Livermore (Trader)
Top Links
5 Signs This Might Be a New Bull Market – A Wealth of Common Sense
Ben Carlson highlights five signs that a new bull market is underway.
Small Options Traders are in a Frenzy – SentimenTrader
Jason Goepfert points out that small options traders are aggressively bullish right now.
Brian Shannon – The Psychology Behind Technical Analysis & Why ‘Only Price Pays’ – OPTO Trading
Here’s a good podcast with Brian Shannon, in which he explains how psychology drives price action in the markets.
Banks Peaking as They Kiss 7 Year Resistance? – Kimble Charting Solutions
Chris Kimble shows that the Bank Index ($KBE) is running into an area of potential resistance.
Ari Wald on Travel Stocks – CNBC
In this clip, Ari Wald of Oppenheimer shares his technical perspective on travel stocks.
Top 10 Tweets
S&P 500 now well above Wall Street strategists’ average forecast (as of mid-May) for year @bloomberg pic.twitter.com/jshSviN8FE
— Liz Ann Sonders (@LizAnnSonders) June 9, 2020
This rally has been incredible.
The last time the $SPY's RSI was this stretched to the upside was in Feb of 91', following the 90'-91' recession and bear market.
Which kicked off the start of the 90's decade long bull run… pic.twitter.com/QFMX76UWmf
— Alex Barrow (@MacroOps) June 9, 2020
The S&P 500 is 12.7% above its 50-day MA, which is historically rare since 1950.
When it has occurred, its been after a major low and lead to a short-term consolidation but was long-term bullish. $SPX pic.twitter.com/x6Rdd73mPE
— Andrew Thrasher, CMT (@AndrewThrasher) June 9, 2020
Total U.S. Call minus Put Volume.
This is the 2nd largest Call-buying binge of all time – and measured from the lows, is THE biggest spike ever.
At current pace, will make a new record high in less than a week.
Monitor for turn down to confirm a potential significant top. pic.twitter.com/z4oQ3GDcMf
— Macro Charts (@MacroCharts) June 9, 2020
$VIX still looking bouncy pic.twitter.com/EKBIFbeixg
— KKern, TTB (@kkernttb) June 9, 2020
“The relentless rally continued today .. at a pace we have rarely if ever have seen. The MS U.S. Momentum Short index is up 66% over the last 16 days, easily the best such performance in the last two-decades.” – @jkrinskypga pic.twitter.com/cEKB1G3A5g
— Carl Quintanilla (@carlquintanilla) June 9, 2020
I thought gold was supposed to "die" if equities recovered to new highs and gold "wasn't needed" anymore. pic.twitter.com/Bt4TyRQCfu
— ? I. Vodenitcharov CFA CMT (@iv_technicals) June 9, 2020
imagine if you picked the wrong metal and owned gold this whole time instead of Palladium? ouch! pic.twitter.com/rZ004PLFwb
— J.C. Parets (@allstarcharts) June 9, 2020
10-year total return $BRK.B $SPY $QQQhttps://t.co/OnXmvsTq0A pic.twitter.com/8XUztxHbwF
— Koyfin (@KoyfinCharts) June 9, 2020
At $33 billion, Nikola's market cap is now higher than Ford's ($30 billion).
Nikola has $0 revenue vs. $150 billion for Ford over the last year.$NKLA $F https://t.co/xRLp1VDzbi
— Charlie Bilello (@charliebilello) June 9, 2020