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Today’s Summary
Friday, June 26th, 2020
Indices: US Stocks ended the week on a sour note with the Dow Jones Industrial Average dropping 730 points or 2.84%. The S&P 500 and Nasdaq fell 2.42% and 2.59%, respectively. The Russell 2000 slid 2.44%.
Sectors: All 11 sectors closed lower by more than 1%. Utilities led, but still fell 1.06%. Communications lagged, tumbling 4.41%.
Commodities: Crude Oil futures moved lower by 1.45% to $38.16 per barrel. Gold futures rose 0.80% to $1,785 per ounce.
Currencies: The US Dollar Index inched higher 0.12%.
Interest Rates: The US 10-year Treasury yield fell to 0.642%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Copper vs Gold can't become overbought on the recent rally. Growth over Value across all market caps until this ratio is in an uptrend. pic.twitter.com/5R4vwXV5Hh
— Dan Russo, CMT (@DanRusso_CMT) June 26, 2020
Today’s Chart of the Day was shared on Twitter by Dan Russo of Chaikin Analytics (@DanRusso_CMT). It’s a chart of the Copper/Gold ratio over the past four years. This ratio is often used as a proxy for global growth. Copper has been underperforming Gold for more than two years, indicating that we’re in a low or no-growth environment. When growth becomes scarce like this, market participants become more willing to pay a premium for growth. Hence the reason that growth stocks have been aggressively outperforming value stocks in recent years. Dan explains that it would be wise to continue favoring growth over value until the Copper/Gold ratio reverses its multi-year downtrend.
Quote of the Day
“Live in the sunshine, swim in the sea, drink the wild air.”
– Ralph Waldo Emerson
Top Links
Is This a Bull or Bear Market? – Fidelity
Fidelity’s director of Global Macro, Jurien Timmer, explains why he thinks the 2020 lows may already be in.
Stock Market Video Update for Week Ending 6/26/20 – AlphaTrends.net
Brian Shanon recaps this week’s price action and lays out some levels of interest to keep an eye on going into next week.
Nasdaq – Russell Spread Pulling the Rubber Band Tight – Bespoke
Bespoke takes a look at the extreme disparity between the performance of the Nasdaq and the Russell 2000.
Weight of the Evidence – Jotting on Charts
Grant Hawkridge does a deep dive on the Dow Jones Industrial Average, breaking down each of the 30 stocks within the index.
Where Do We (Investors) Stand? – David Cox
In this quick video, portfolio manager, David Cox highlights some of the most important technical developments to be aware of.
Top 10 Tweets
This Wk's Market Mood: RISK-OFF
– Stocks down 2%+
– Bonds & the dollar up 3rd week
– But yen up slightly
– June 12 wk start of a trend shift down?Thoughts on Next Week
– $SPX to stay below 200 DMA?
– Dollar rally to continue?
– Watching $HYG
– Weekend!— Abigail Doolittle (@TheChartress) June 26, 2020
Watching 2,975-3,000 for support in the $SPX. 50, 100, 200-day EMA's converging around monthly -2 Std Dev band. Note momentum at the lower end of the positive range as well, both areas are significant. $SPY #markets #stocks #TradingView pic.twitter.com/sR6uaBqZdY
— Drew Wells, CMT, CIMA® (@DrewTheCharts) June 26, 2020
Watch the "weak links" for correction depth clues. pic.twitter.com/mwppJDQQ17
— Strategas (@StrategasRP) June 26, 2020
Wow — MSCI All Country World Index ex US on track for its best month vs the S&P 500 since 2009 pic.twitter.com/xEafpSPDFr
— Sarah Ponczek (@SarahPonczek) June 26, 2020
$EEM and $EFA continue to struggle to get back above and hold their 200-day moving average. pic.twitter.com/DC3rKhxapB
— Andrew Thrasher, CMT (@AndrewThrasher) June 26, 2020
TLT
Breaking out from consolidation $TLT $TNX $SPX $VIX pic.twitter.com/CDI6GuDS0F— Bhagyashree Urdhwareshe, CMT (@sunsofttech) June 26, 2020
Crude oil running into some trouble here right where one would expect – prior price support and the March gap. $CL_F $USO $XLE $OIH pic.twitter.com/PgFEB3GKxw
— Greg Rieben (@gregrieben) June 26, 2020
$gld follow up after a nice Re-test pic.twitter.com/lS4bqcsLqC
— Scott Redler (@RedDogT3) June 26, 2020
Silver… Buy It.
A “Conventional” Buy juncture.
Toying with the prospects of a breakout-type move, here at the well-defined tops of the past 6 months centered on the $18/oz +/- level.
We’re buyers here. Short-term price objective: $20/oz.$SLV pic.twitter.com/q2vqJaLVZR
— Carter Braxton Worth (@CarterBWorth) June 26, 2020
Total Returns, last 10 years…
Nasdaq 100: +502%
Berkshire Hathaway: +117%$QQQ $BRKB
Chart via @ycharts pic.twitter.com/rJMVvZzQvp— Charlie Bilello (@charliebilello) June 26, 2020