Sponsored By:
Today’s Summary
Monday, August 24th, 2019
Indices: US stocks kicked off the week on a positive note with the Dow Jones Industrial Average jumping 270 points or 1.05%. The Nasdaq was the strongest of the major indices, gaining 1.32%.
Sectors: All 11 sectors closed higher. Communications led, advancing 1.50%. Materials lagged but still gained 0.33%.
Commodities: Crude Oil futures slipped 0.98% to $53.63 per barrel. Gold futures closed more or less flat and continue to trade around $1,537 per ounce.
Currencies: The US Dollar Index rose 0.41%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.538%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by John Palicka (@John_Palicka). It’s a chart comparing the performance of the Gold ETF ($GLD) to the Gold Mining ETF ($GDX) since 2006. The chart addresses a common question among Precious Metals bulls right now: which will outperform, Gold or Miners? John points out that when Gold is breaking out, Miners tend to outperform in the short-term because they are leveraged to Gold. however, over the long-term, Miners have operational inefficiencies that come in to play and they end up underperforming Gold. So far in 2019, Gold is up nearly 19% while Miners are up twice as much (40%). It’ll be interesting to keep an eye on the relationship between these two ETFs to see which is a better way to play a rally in Precious Metals over the long-term.
Quote of The Day
Top Links
Podcast with Denise Shull, Performance Coach and Founder of the ReThink Group – Technical Analysis Radio
Here’s the latest podcast from Technical Analysis Radio featuring Denise Shull. She’s rumored to be the inspiration behind the character of Wendy Rhodes from the Showtime series Billions. In the podcast, she discusses human behavior as it relates to markets.
Gold Price Momentum Could Push to $1,700 – Kitco News
In this video, Todd Gordon of Trading Analysis.com uses Elliot Wave Analysis to explain why he thinks Gold is heading to $1,700 per ounce.
What Copper’s Really Saying About Stocks – Schaeffer’s Investment Research
This piece from Schaeffer’s Investment Research examines the relationship between Copper prices and the S&P 500. They argue that Equities can still do well in an environment where Copper is falling.
A Stable Stock in an Unstable Market – StockCharts.com
Arthur Hill of StockCharts.com points out that Merck ($MRK) has been steadily moving higher despite the choppy environment that stocks have been in.
Does the Yield Curve Signal a Recession in 2020? – Cheddar
Chris Verrone of Strategas Research Partners weighs in on the yield curve and lays out some of the other technical indicators he’s watching.
Top 10 Tweets
The bad news? The S&P 500 is down 4 straight weeks.
The good news? Since this bull market started 10 years ago, only once has it been down 5 straight weeks (6 weeks in a row in 2011). pic.twitter.com/ZcbpO1IRab
— Ryan Detrick, CMT (@RyanDetrick) August 26, 2019
The market has reached a significant juncture; we are about to find out just how strong the #CyclicalBullMarket still is. pic.twitter.com/MfNJpEdF74
— Walter Deemer (@WalterDeemer) August 25, 2019
The S&P500 hovers above its 50 week MA while weekly momentum enters oversold levels that have produced intermediate bottoms over the last few years. $SPX rectangle pattern resembling Fall 2018 where momentum continued lower. Important area for broader market. pic.twitter.com/a9gMoDj5ao
— Michael McKerr (@MikeMcKerr_TDA) August 26, 2019
This is now the 92nd time in $SPX history that the index has spent at least 12 straight days ABOVE the 200d but BELOW the 50d moving avgs.
Historical odds are 3:1 that the index will break to the up-side (68 to 23).
[data: stooq]
— OddStats (@OddStats) August 26, 2019
S&P 500 consolidation in Q1 2018 occurred, for the most part, above 200-day.
S&P 500 consolidation in Q4 2018 occurred above and below 200-day.
Current consolidation, thus far, has occurred above 200-day. pic.twitter.com/7vymCaDvwA
— Chris Ciovacco (@CiovaccoCapital) August 26, 2019
10-year US yields are the lowest since 2016. Gold prices are the highest since 2013. Yet stocks keep catching a bid. One theory is that investors like equities for income; on a relative basis, they're offering about the most earnings yield v Treasury rates since 2016 @theonedave pic.twitter.com/JtqQosd3vW
— Lisa Abramowicz (@lisaabramowicz1) August 26, 2019
Not fool proof by any means, but when $TNX has gotten this far extended from its 200 week MA (% from MA) in the past, it has typically resulted in a bottom for rates pic.twitter.com/6AhYSQzSZE
— BostonCharts (@bostonchaahhts) August 26, 2019
$GLD's recent run has it a hair away from topping $SPY since it's inception in Nov 2004 pic.twitter.com/jueHha9ohp
— Eric Balchunas (@EricBalchunas) August 26, 2019
Still watching the Silver/Gold ratio. It really spiked in 2011, which we haven't seen yet. But maybe ready to break out? pic.twitter.com/ytpnk7EvU0
— Joe Weisenthal (@TheStalwart) August 26, 2019
Nat Gas seasonality tends to bottom out around now $$NG_F $UNG $UGAZ pic.twitter.com/ZSM1dw400w
— Aaron (@ATMcharts) August 26, 2019
You’re all caught up now. Thanks for reading!