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Today’s Summary
Wednesday, June 17th, 2020
Indices: US Stocks closed mostly lower in today’s session, with the Dow Jones Industrial Average falling 170 points or 0.65%. The S&P 500 snapped a three-day winning streak, slipping 0.36%. The Nasdaq managed to close slightly positive, rising 0.15%. Small-Caps underperformed, with the Russell 2000 falling 1.77%.
Sectors: Communications was the only sector to close higher, inching up 0.13%. Energy lagged significantly, dropping 3.41%.
Commodities: Crude Oil futures moved lower by 1.77% to $37.70 per barrel. Gold futures were little changed, slipping just 0.06% to $1,735 per ounce.
Currencies: The US Dollar Index was more or less flat, changing just 0.03%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.741%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
There is nearly $5 trillion in money markets currently.
This is nearly double what it was five years ago. Also, the recent 3 month change was the largest spike ever. pic.twitter.com/8lI3LisJvD
— Ryan Detrick, CMT (@RyanDetrick) June 17, 2020
Today’s Chart of the Day was shared on Twitter by Ryan Detrick (@RyanDetrick). The chart shows the amount of money market mutual fund assets over the past 15 years, along with the three-month rate of change in yellow. Ryan points out that there has been a record spike in the amount of cash on the sidelines over the past three months. There is nearly $5 trillion in money markets, which is nearly double what it was five years ago. The recent surge in retail trading activity and the rise of newly minted day-trading gurus has many concerned that stocks are entering another dot-com type of bubble. But what if the real bubble is in the amount of cash on the sidelines? Sure, a lot of this is a result of massive fiscal stimulus and future uncertainty. But what if the world doesn’t end, and the markets continue higher? In such a case, it wouldn’t be surprising to see investors put some of this cash to work in the markets. Will this be the dry powder needed to fuel another leg higher or a sign of risk aversion?
Quote of the Day
“Charts don’t give answers, they raise questions. Inferences are drawn when enough questions point in the same direction.”
– Mark Ungewitter (Technical Analyst)
Top Links
Are Investors Rational? – Compound
Charlie Bilello dunks on the Efficient Market Hypothesis by reminding us that market participants are not rational.
Dow Jones Is Having A “Stare Down” With Important Resistance! – Kimble Charting Solutions
Chris Kimble points out that the Dow Jones Industrial Average is testing resistance from the 261.8% Fibonacci extension of the 2007-2009 decline.
Stock Market Swing Trade Ideas – The Trade Risk
In this video, Evan Medeiros shares some actionable chart setups from the IBD 50 list including, $TW, $NARI, $CATS, and $BL.
Three Stocks That Tell You Everything – StockCharts.com
David Keller takes a look at three individual stocks ($SBUX, $AMAT, $MS) that represent the action in the broader market.
Stock Market Video Analysis – AlphaTrends.Net
Brian Shanon gives a brief mid-week price action recap and lays out some levels of interest to focus on in the remainder of the week.
Top 10 Tweets
Investors—both retail & institutional—sitting on piles of cash, which suggests that further fiscal/monetary support may encourage more money to come off sidelines (especially since levels may have peaked in late May) @DataArbor pic.twitter.com/YpHqdMshoV
— Liz Ann Sonders (@LizAnnSonders) June 17, 2020
From the BofA Fund Manager Survey:
"Hedge fund net equity exposure skyrocketed to 52% up from 34%, the highest level since Sept 2018."
A historic swing from "get me out" to "all-in".
Hated or not, this rally was *bought*. Aggressively. pic.twitter.com/41pF3koK0t
— Macro Charts (@MacroCharts) June 17, 2020
always interesting to see who’s doing the buying… institutions used their cash this past month to step in while retail remains sidelined @BofAML pic.twitter.com/n1425etrHi
— David Cox, CMT, CFA (@DavidCoxWG) June 17, 2020
The S&P 500 has fallen 5% in one week while still having at least 70% of the stocks above their 50-day moving average just one prior time in the last twenty years. pic.twitter.com/QilmTd3o8M
— Andrew Thrasher, CMT (@AndrewThrasher) June 17, 2020
Valueline Geometric and SPX$VLG fails to cross above 200 DMA while $SPX has taken support at 200 DMA after a breakout$SPX $VLG pic.twitter.com/fBfH8F1pcV
— Bhagyashree Urdhwareshe, CMT (@sunsofttech) June 17, 2020
Ok folks. Here are 4 Gold charts. What do they mean to you? $GLD $GDX $GC_F pic.twitter.com/KkWtzf92gv
— J.C. Parets (@allstarcharts) June 17, 2020
$AMGN — Bullish seasonal tendency. pic.twitter.com/9yDTEYZRLu
— Nautilus Research (@NautilusCap) June 17, 2020
$PTON #PTON Raindrops told us buyers were in control this week for the next leg. https://t.co/tMtKs9aZ5R
— TrendSpider (@TrendSpider) June 17, 2020
Zoom’s next 25% +/- decline is judged likely and imminent. Price Objective: $175+/- $ZM pic.twitter.com/raSRRr59CR
— Carter Braxton Worth (@CarterBWorth) June 17, 2020
Still a bit early for the 4th, but a "classic" bottle rocket candlestick formed on Tuesday. A reversal at the 200-day on Monday, a gap on Tues, intraday dip and fairly strong close. Short-term bullish as long as the gap holds. A filling of the gap would make it a dud. $SPY $SPX pic.twitter.com/rygZAKORMJ
— Arthur Hill, CMT (@ArthurHill) June 17, 2020