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Today’s Summary
Wednesday, June 10th, 2020
Indices: US Stocks were mostly lower in today’s session with the Dow Jones Industrial Average falling 282 points or 1.04%. The S&P 500 slipped 0.53%, while the Nasdaq managed to rise 0.67% and close above 10,000 for the first time ever. Small-Caps underperformed by a decent margin, with the Russell 2000 dropping 2.63%.
Sectors: For the second day in a row, Technology was the only sector to close higher, gaining 1.67%. Energy lagged, falling 4.92%.
Commodities: Crude Oil futures rose 0.31% to $39.06 per barrel. Gold futures continued higher by 1.51% to $1,748 per ounce.
Currencies: The US Dollar Index dropped 0.33%.
Interest Rates: The US 10-year Treasury yield fell to 0.731%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$NDX Daily Sentiment at 94, among the 8 most extreme days since 2009 (11 years).
Three months ago, this was at 4.
Few days ever reached this high level – odds are growing for a sharp correction into Q3, magnitude to be determined. pic.twitter.com/I98cqsFXmM
— Macro Charts (@MacroCharts) June 10, 2020
Today’s Chart of the Day was shared on Twitter by Macro Charts (@MacroCharts). It’s a chart of the Nasdaq since the 2009 low, along with the Daily Sentiment Indicator in blue. Bulls celebrated a major milestone today, as the Nasdaq closed above 10,000 for the first time ever. The Index has surged over 45% from the March low, just 11 weeks ago. Breadth and momentum have been healthy and suggest that we’re in the early innings of a new bull market. At the same time, short-term sentiment indicators have been flashing warning signs of excessive optimism among market participants. Macro Charts points out that the Daily Sentiment Index has reached an extreme high of 94. Short-term pullbacks have followed all eight spikes above 93 in the past 11 years. This doesn’t mean stocks will come crashing down as they did in February. But it does increase the likelihood of a pullback in the near-term.
Quote of the Day
The four most dangerous words in investing are: it’s different this time.”
– Sir John Templeton (Investor)
Top Links
Nasdaq 10,000 – Here We Are …And The Uniquely Risky Future – Howard Lindzon
Howard Lindzon shares his thoughts on the Nasdaq now that it has reached the 10,000 milestone that he’s been pounding the table on for years.
Put/Call Ratio Extreme Lows as Market Sputters – The Final Bar
In this episode of the Final Bar, David Keller and Dana Lyons discuss the extremely low reading
in the Put/Call Ratio.
Price Levels Going Into the Second Half – Jotting on Charts
Grant Hawkridge offers his notes on dozens of charts and concludes that the weight of the evidence favors the bulls.
All of the ‘Big Four’ Indexes Have Come at Least 75% Back – SentimenTrader
Jason Goepfert examines what has historically happened after all four of the major indices recover at least 75% of their losses.
Why I am Watching the Dollar Closely – Chaikin Analytics
In this quick video, Dan Russo explains why he’s keeping an eye on the US Dollar.
Top 10 Tweets
The image of relentless appetite $QQQ pic.twitter.com/axmwa0emb6
— Anne-Marie Baiynd, TheTradingBook.com (@AnneMarieTrades) June 10, 2020
'TECH' with a vengeance! #NASDAQ > 10,000#TSLA > USD 1,000. #Apple All time high#Amazon All time high pic.twitter.com/YwQ4RYMGPJ
— jeroen blokland (@jsblokland) June 10, 2020
Painting the tape with Fangs and TSLA while selling the broad market (Rus) pic.twitter.com/LZNb7Ae7wT
— Linda Raschke (@LindaRaschke) June 10, 2020
The "average stock" has had a difficult two years. pic.twitter.com/RI9oLaqB5Y
— Strategas (@StrategasRP) June 10, 2020
S&P testing December and January monthly closing highs and dumb money confidence is reaching very high levels. Important what the $SPX does at (1)! $SPY https://t.co/Xo3j1l99tS pic.twitter.com/3Ri9yhjJ6P
— Chris Kimble (@KimbleCharting) June 10, 2020
Continues to hold the AVWAP from each recent intra-day high. pic.twitter.com/jyCdJXOUbC
— Ian McMillan, CMT (@the_chart_life) June 10, 2020
Gold held 1680 where it had to and the miners held above their breakout level as well, now let's see them make new highs. pic.twitter.com/Cq5jPgHMVe
— Tom Bruni, CMT (@BruniCharting) June 10, 2020
#Silver with a nice break out of the falling wedge this morning. Rising support from the March low held nicely. Price really needs to get above 18.18 for another run to 18.90. The next test of 18.90 will be the third since February. $SLV pic.twitter.com/O0iFBWdOPq
— Tarek I. Saab (@FibLines) June 10, 2020
#Silver seasonality showing that June is historically the weakest month of the year. Holding up pretty well so far this June. pic.twitter.com/yADsUDCBVw
— CEO Technician (@CEOTechnician) June 10, 2020
If you bought Hertz 4 days ago, you've tripled your money, if you bought it 2 days ago, you've lost half your money. Congratulations & condolences. pic.twitter.com/ahnNe7phm6
— Willie Delwiche, CMT, CFA (@WillieDelwiche) June 10, 2020