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Today’s Summary
Wednesday, June 24th, 2020
Indices: US Stocks closed lower with the Dow Jones Industrial Average finishing the day down 710 points or 2.72%. The S&P 500 dropped 2.59%. The Nasdaq snapped its eight-day winning streak, falling 2.19%. Small-Caps underperformed with the Russell 2000 sliding 3.45%.
Sectors: All 11 sectors closed lower. Utilities led, but still fell 0.91%. Energy lagged, tumbling 5.55%.
Commodities: Crude Oil futures dropped 5.85% to $38.01 per barrel. Gold futures briefly hit a seven-year high but closed lower by 0.39% to $1,775 per ounce.
Currencies: The US Dollar Index rose 0.55%.
Interest Rates: The US 10-year Treasury yield fell to 0.683%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
It’s about to get aggressive for gold, in terms of immediate and exciting upside. There’s little to no resistance above. The word that keeps coming to mind, is: truculent. We remain confident buyers of Gold. $GLD $GDX pic.twitter.com/3tGRWpNp7M
— Carter Braxton Worth (@CarterBWorth) June 24, 2020
Today’s Chart of the Day was shared on Twitter by Carter Worth of Cornerstone Macro (@CarterBWorth). It’s a chart of Gold over the past decade. The yellow metal has outperformed stocks in recent years, and today hit its highest level since 2012. Price has formed a massive base in that time and is now testing the 2011 all-time highs, around $1,800-$1,900 per oz. Carter describes the price action in Gold as ‘truculent’ – meaning aggressively self-assertive (don’t worry we had to google it too). Now, let’s not get ahead of ourselves, this is still a crucial test for Gold. Price still needs to break above those 2011 highs in the next few months. But if it does, there’s virtually no immediate resistance to stop it from moving significantly higher over the next few years.
Quote of the Day
“When you talk, you are only repeating what you already know. But if you listen, you may learn something new.”
– Dalai Lama
Top Links
Eight Was Enough – Bespoke
The Nasdaq broke an eight-day winning streak today. In this brief note, Bespoke takes a look at how the index has historically performed in the months following a winning streak of 8-days or more.
Gold’s Trading Patterns Foreshadow Record Highs in the 2nd Half of 2020, Bank of America Says – Business Insider
This article highlights Bank of America’s technical outlook on Gold.
Andrew Thrasher Discusses Equities, Volatility and a Few Macro Implications – TD Ameritrade Network
Volatility expert, Andrew Thrasher shares his thoughts on the current market environment.
Gauging Market Sentiment with the CBOE Equity Options Put/Call Ratio – Chaikin Analytics
In this video, Dan Russo of Chaikin Analytics explains why he’s closely watching the Put/Call ratio right now.
Precious Metals – Why Less is More – All Star Charts
Tom Bruni of All Star Charts offers his take on Gold, Silver, and Platinum.
Top 10 Tweets
Since a trading high of 3233 on 6/8, the market has churned in a narrow range of 8% (2965-3233). There is a gap in the daily chart (near the “b”) that could become an island reversal. My guess: we’re in a correction/consolidation phase with a possible downside risk to 2850-2950. pic.twitter.com/14KdtIU8YR
— Jurrien Timmer (@TimmerFidelity) June 24, 2020
NASDAQ’s huge rally not confirmed by % of member stocks trading > 200-DMA pic.twitter.com/xFAEGmfRGl
— Liz Ann Sonders (@LizAnnSonders) June 24, 2020
NASDAQ's rally has pushed it *16% above its 200 dma*, while only 45% of NASDAQ members are above their 200 dma!
There is only 1 other time this happened (big NASDAQ rally on weak breadth):
Feb 2020, just before stocks crashed
Only difference? Breadth now is *WORSE* than in Feb pic.twitter.com/0iFQZN3qmO
— SentimenTrader (@sentimentrader) June 24, 2020
The 200 on the 60 minute continues to halt "Da Bears" dead in their tracks, for now. $spx pic.twitter.com/TAWKJJAUwy
— Steve Deppe, CMT (@SJD10304) June 24, 2020
If there's one chart that should be on every investors radar right now it's the Financials Sector Index $XLF retesting 23. Those were the April highs. Losing 23 in $XLF would put a major damper on this whole bull market, "Stocks only go up" thesis imo pic.twitter.com/eOH5kdK8Ph
— J.C. Parets (@allstarcharts) June 24, 2020
U.S. biotech is characterized by powerful mark-ups following multi-year consolidations. Has recent “breakout” concluded five-year repair process? $XBI $IBB #LongTermPerspective pic.twitter.com/krDZleNbo7
— Mark Ungewitter (@mark_ungewitter) June 24, 2020
Gold's the best performing major asset over the past year.
Just saying. pic.twitter.com/B2u02R2R1q— Ed van der Walt (@EdVanDerWalt) June 24, 2020
#Gold Hits Highest Level Since 2012 – $1800+ Next? https://t.co/siCJXglJos pic.twitter.com/OWh7CZoLwi
— Matt Weller CFA, CMT (@MWellerFX) June 24, 2020
If Platinum can break higher from this flag, I think we can then say buyers have successfully absorbed that overhead supply from the 2015/16 lows pic.twitter.com/u6UVQtjONE
— Louis (@haumicharts) June 24, 2020
"markets are efficeint they say," they say. "humans will act rationally when making economic decisions." pic.twitter.com/KRf1KXkzQe
— Lighthouse Capital (@LighthouseCap23) June 24, 2020