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Today’s Summary
Wednesday, July 3rd, 2019
Indices: US stocks were higher in today’s abbreviated session with the Dow Jones Industrial Average gaining 179 points or 0.67%. The S&P 500 was the strongest of the major indices gaining 0.77%.
Sectors: Real Estate led for the second day in a row gaining 1.44%. Energy lagged for the second day in a row, falling 0.40%.
Commodities: Crude Oil futures rose 2.04% to $57.39 per barrel. Gold futures gained 1.00% to settle at $1,422 per ounce.
Currencies: The US Dollar Index rose just 0.06%.
Interest Rates: The US 10-year Treasury yield fell to 1.953%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s chart of the day was shared on Twitter by Aksel Kibar (@TechCharts). It’s a weekly candlestick chart of McDonald’s ($MCD). The chart shows $MCD breaking out of an Ascending Triangle that took 4 months to form. An Ascending Triangle is a bullish continuation pattern that features a horizontal resistance line coupled with an upward sloping support line. A price target for this pattern can be found by taking the height of the triangle and adding it to the breakout price. Aksel notes that $MCD recently hit its price target of $209. We like this chart because it serves as a textbook example of an Ascending Triangle and a great demonstration on how to calculate a price target using classic chart patterns.
Quote of The Day
“If everyone’s waiting for a pullback to buy either you don’t get a pullback or, if you do, you shouldn’t buy it.”
– Bob Farrell (Technical Analyst)
Top Links
Katie Stockton of Fairlead Strategies joined host Abigail Doolittle on Bloomberg yesterday to lay out her bullish thesis on the S&P 500. She also touched on the 10-year Treasury Yield and the Nikkei.
Bond Rally to Reverse? – Real Vision
Mark Newton of Newton Advisors made an appearance on Real Vision today to share his thoughts on Bonds and the Financial Sector. He thinks yields are due for a short-term bounce and recommends using the Regional Banking ETF ($KRE) to express his trade.
Monthly Breadth: Dark Clouds or a Ray of Hope? – Chris Ciovacco
Here’s a blog post from Chris Ciovacco. He examines market breadth using the monthly NYSE Advance-Decline Line.
Fibonacci & The Dow – All Star Charts
In this video, JC Parets of All Star Charts discusses how he uses Fibonacci Analysis. He shows viewers a few examples of how Fibonacci Extensions can serve as a great tool for establishing price targets.
Will Chart Pattern Be Stock Market’s ‘Cup” of Tea? – Dana Lyons
In this piece, Dana Lyons points out the potential cup & handle pattern that’s forming on the chart of the Russell 3000 index. He explains why this simple chart pattern would be a huge gift to the bulls if it pans out.
Top 10 Tweets
3K. ?☀️?$SPX pic.twitter.com/rkBtfVJB7n
— Arun S. CFA CMT? (@FusionptCapital) July 3, 2019
Can it be this easy? pic.twitter.com/5WLyIQrQJc
— Bespoke (@bespokeinvest) July 3, 2019
ChOTD-7/3/19 Broad Russell 3000 Index (et al.) Forming Bullish Cup-&-Handle? $RUA $IWV Similar pattern among plethora of idxs, etfs, etc. the overriding near-term catalyst for the market? pic.twitter.com/oXDWZ66hIC
— Dana Lyons (@JLyonsFundMgmt) July 3, 2019
Is $TRAN really that important? Probably not. Total market cap of the 20 stocks is $547.7 billion. $MSFT, $AMZN, $AAPL, $GOOGL, $FB, and $BRK.B have higher market caps. $JNJ + $PFE = $716 billion$V + $MA = $660 billion$JPM + $BAC = $648 billion$XOM + $CVX = $545 billion pic.twitter.com/C9a5KPez1b
— Arthur Hill, CMT (@ArthurHill) July 3, 2019
Encouraging chart of the day courtesy of @verrone_chris from @StrategasRP – at both large-cap and small-cap level, Industrials sector is seeing an expansion in the new high list as the sector itself challenges resistance. pic.twitter.com/I0imUVAaOe
— Willie Delwiche (@WillieDelwiche) July 3, 2019
$SLV liked the action today. Closed gap and bounced. Have some but may be adding if it keeps going in the right direction pic.twitter.com/CSvP7kGCeh
— Gregory Krupinski (@G_krupins) July 3, 2019
$SLV unattractive vs. $GLD. pic.twitter.com/TiT6Ko4nLk
— Mark Ungewitter (@mark_ungewitter) July 3, 2019
$SLV unattractive vs. $GLD. pic.twitter.com/TiT6Ko4nLk
— Mark Ungewitter (@mark_ungewitter) July 3, 2019
The recent 30.5% correction in BTC is mild compared to the many corrections in the 2015-2017 parabolic advance. $BTC pic.twitter.com/L8eihNscav
— Peter Brandt (@PeterLBrandt) July 2, 2019
Updated, slightly longer-term look at the Trump Tweet-O-Meter. With markets levitating through the week, could be set for a new record of presidential enthusiasm. CONGRATS! pic.twitter.com/0d9q0rhc1m
— SentimenTrader (@sentimentrader) July 3, 2019