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Today’s Summary
Thursday, August 22nd, 2019
Indices: US stocks were mixed in today’s session with the Dow Jones Industrial Average closing up 50 points or 0.19%. The Nasdaq fell 0.36% while the S&P 500 finished more or less flat.
Sectors: Financials led, gaining 0.68%. Materials lagged, falling 0.67%.
Commodities: Crude Oil futures fell 0.66% to $55.28 per barrel. Gold futures moved lower by 0.48% to $1,508 per ounce.
Currencies: The US Dollar Index inched lower by 0.09%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.613%.
Here are 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 Matt (@commander10). It’s a weekly candlestick chart of Copper futures. Matt points out three different bearish patterns that have developed on the chart. The first being a bearish head and shoulders pattern that has been forming since 2017. He adds that the right shoulder of this pattern has its own, smaller head and shoulders pattern within it. Lastly, he explains that a small bear flag has formed within the past few weeks, and notes that this is best viewed on a four-hour chart. All three of these classic chart patterns point to trouble ahead for Copper prices.
Quote of The Day
Top Links
Investors Should Focus on Market Indicators Rather Than Sentiment, Expert Says – CNBC
Katie Stockton of Fairlead Strategies made an appearance on CNBC’s “Squawk Box” this morning to share her thoughts on the market and explain which indicators she’s currently watching.
Is a Small-Cap Labor Day Rally Comming Soon – Almanac Trader
Seasonality Expert, Jeff Hirsch points out that in recent years, Small-caps stocks have tended to pick up strength just before labor day.
Three Must-See Charts on Stock and Bond Correlations, Capitulation – Bloomberg
John Kolovos of Macro Risk Advisors joins host, Abigail Doolittle to examine what the charts are suggesting for the market going forward.
Positive Sentiment Grinds Higher – Bespoke
This note from Bespoke takes a look at the results of the most recent AAII Sentiment Survey.
The Value of Technical Analysis of Stock Market Trends – Asymmetry Observations
Here’s a good read from Investment Manager, Mike Shell where he explores the importance of Technical Analysis and identifying trends.
Top 10 Tweets
$BA responsible for 102 of the Dow's 98-point gain.
— Michael Kahn, CMT (@mnkahn) August 22, 2019
Fairly quiet day overall, but a nice push for some of the larger Banks.$XLF $SPY pic.twitter.com/0UuUbd94TE
— Jack Damn ♻️ (@JackDamn) August 22, 2019
And 2945 takes on added significance on this Big Jackson Hole Speech Eve. In addition, a close below 2918 would create an outside reversal day. All to get us ready for even more gyrations tomorrow… pic.twitter.com/cYvjlQbZRd
— Walter Deemer (@WalterDeemer) August 22, 2019
You like analogs?
Fine.
Here are the 6 years in $SPX history where the index was up roughly as much as now (YTD) after 162 trading days.
All 6 events closed the year even higher.
X-axis is # of trading days. pic.twitter.com/xZgnEzBDrm
— OddStats (@OddStats) August 22, 2019
From our latest #fairleadtactics report, this Relative Rotation Graph shows potential for defensive sectors to lose relative strength vs. $SPX as referenced @CNBC https://t.co/JY9kOrWgIm pic.twitter.com/osSfIhdj4O
— Katie Stockton, CMT (@StocktonKatie) August 22, 2019
$VVIX held its August 8th low, creating a divergence with $VIX. Today we're seeing spot volatility respond with snapping back above 17. pic.twitter.com/fKvG9Iisds
— Andrew Thrasher, CMT (@AndrewThrasher) August 22, 2019
Who’s buying this failed breakdown in Shippers?? $SEA pic.twitter.com/NuTlWTAngy
— J.C. Parets (@allstarcharts) August 22, 2019
Technical patterns can give us great clues about bonds… in this case, watching the boundaries of the bull flag can tell us when the trend is challenged. $US_F $TLT $TY_F pic.twitter.com/YqQD1zbnTK
— Adam Grimes (@AdamHGrimes) August 22, 2019
The 2-10s yield curve is inverted again. pic.twitter.com/a5mh7lgYg5
— Lisa Abramowicz (@lisaabramowicz1) August 22, 2019
Take your eyes off of the yield curve for a moment and a take a look at copper. Finished the day near a kind of important-looking level. pic.twitter.com/wjl0lDB8Fc
— Willie Delwiche (@WillieDelwiche) August 22, 2019
You’re all caught up now. Thanks for reading!