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Today’s Summary
Friday, June 12th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average rebounding 477 points or 1.90%. The S&P 500 and Nasdaq rose 1.31% and 1.01%, respectively. Small-Caps outperformed with the Russell 2000 moving higher by 2.32%.
Sectors: Real Estate led, gaining 3.16%. Utilities was the only sector to close lower, slipping 0.26%.
Commodities: Crude Oil futures fell 0.22% to $36.26 per barrel. Gold futures inched lower by just 0.14% to $1,737 per ounce.
Currencies: The US Dollar Index moved higher by 0.29%.
Interest Rates: The US 10-year Treasury yield rose to 0.708%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
#VIX #ImpliedVolatility pic.twitter.com/AhFrz6CFcp
— Nautilus Research (@NautilusCap) June 12, 2020
Today’s Chart of the Day was shared on Twitter by Nautilus Research (@NautilusCap). It’s a chart of the Volatility Index ($VIX) over the past 20 years, along with a 1-day rate of change indicator in blue. The VIX surged 47.95% yesterday – marking its largest daily % gain in over two years. The red circles highlight all the times that the VIX has spiked more than 45% in a day for the first time in three months. The table shows the forward returns of the VIX and the S&P 500 after each of the prior nine occurrences. The VIX has always been lower three-months after these volatility spikes. Six months later, the S&P 500 was higher 76% of the time for an average gain of 6.46%.
Quote of the Day
– Maya Angelou (Poet)
Top Links
Is This The Start of a New Bear Market? – LPL Financial Research
The team at LPL Financial Research explains that a short-term pullback could be healthy for the market longer-term, especially given the historic 45% surge we’ve had off the March lows.
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.
Time to Buy Bitcoin? – All Star Charts
JC Parets shares his technical perspective on Bitcoin.
Options Insight w/ Carley Garner – Bloomberg
Abigail Doolittle and Carley Garner discuss the outlook for the S&P 500 following Thursday’s sell-off.
Stock Market Video Analysis for Week Ending 06/12/20 – AlphaTrends.net
Here’s Brian Shannon weekly video recap, in which he lays out some key levels of interest to keep an eye on next week
Top 10 Tweets
Something for everyone in this week's price action…
Failure at key overhead resistance 3200
Resilience of short-term support (3000/200dma)$SPX $SPY pic.twitter.com/xitzQtUcFW— Callum Thomas (@Callum_Thomas) June 12, 2020
Will have to see how a potential top would further materialize next week… but for now, the $NDX appears to have a monster bearish divergence happening. pic.twitter.com/nttRk7AYNc
— David Keller, CMT (@DKellerCMT) June 12, 2020
CBOE’s equity put/call ratio swiftly reversed yesterday, seeing largest increase in 4 years @bloomberg pic.twitter.com/AxlTGAa6kC
— Liz Ann Sonders (@LizAnnSonders) June 12, 2020
Most Volatile Years in Stock Market History (updated):
Now 112 days into 2020 (x-axis), Stocks have moved >1% for a massive 61 days (y-axis).
Still ranked in TOP 6 of all time.
Only 15 years ever reached such intense Volatility – ALL remained violent to the end. Stay nimble. pic.twitter.com/xh7jKBvclk
— Macro Charts (@MacroCharts) June 12, 2020
Market Commentary (https://t.co/93UQiMYgjh): 2020 Providing Plenty of Volatility But Little Progress
Consolidation right here could provide chance for breadth leadership and rebuild in skepticism. pic.twitter.com/TiUWp0pUzA
— Willie Delwiche, CMT, CFA (@WillieDelwiche) June 12, 2020
38% of S&P 500 stocks have triggered a MACD sell signal. A significant number of stocks are rolling over. (This is happening in the NASDAQ 100 and Composite as well)
Similar large spikes led to further S&P pullbacks and more volatility, particularly in recent years. pic.twitter.com/xJgJbqJCES
— Troy Bombardia (@bullmarketsco) June 12, 2020
Commodities: Absolute and Relative pic.twitter.com/9MJWXtFzEj
— Dan Russo, CMT (@DanRusso_CMT) June 12, 2020
I think the dollar is finished but it could have a retrace rally here up to the 98.5-101 zone. $USD pic.twitter.com/VboNWJX3sc
— Jason (@JasonPerz138) June 12, 2020
Despite all the fundamental reasons to be bearish #Tesla – and there are many – technically this chart looks like a clean breakout and retest. If it holds, price looks poised for $1281 $TSLA $TSLAQ pic.twitter.com/gDUMR3FWXH
— Tarek I. Saab (@FibLines) June 12, 2020
The game done changed. We’re in a kangaroo market now folks pic.twitter.com/aVQObpMzq9
— litquidity (@litcapital) June 12, 2020