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Today’s Summary
Tuesday, October 1st, 2019
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average falling 1.28%. The Russell 2000 was the weakest of the major indices, dropping 1.97%.
Sectors: All 11 sectors fell. Utilities led but still slipped 0.26%. Industrials lagged, falling 2.40%
Commodities: Crude Oil futures moved lower by 0.96% to $53.60 per barrel. Gold futures rose 1.05% to $1,489 per ounce.
Currencies: The US Dollar Index fell by 0.21%.
Interest Rates: The US 10-year Treasury yield dropped to 1.635%.
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 David Keller (@DKellerCMT). It’s a daily bar chart of the S&P 500 index since April. David lays out the three directions of the market in order of least painful to most painful. He argues that sideways markets, like the one we’re currently in, are the most painful. The absence of a clear trend can indeed be frustrating. At least in a downtrend you know to either take short positions or sit out in cash. A sideways market is challenging because investors don’t want to be in cash in fear of missing out on the potential upside. However, at the same time, they don’t want to be overexposed to potential drawdowns either. Paul Tudor Jones once said, “Markets trend only about 15 percent of the time; the rest of the time they move sideways.” If this is true then we’d all better get used to being frustrated a majority of the time!
Quote of The Day
Top Links
Marijuana Massacre – The Chart Report
In this report, we discuss the carnage in pot stocks and focus on the Marijuana ETF, $MJ.
Q3 Performance Recap – Bespoke
With Q3 2019 in the books, Bespoke highlights some of the winners and losers of each asset class.
This Turnaround Candidate Is Hitting Its Stride – StockCharts.com
Mary Ellen McGonagle breaks down the daily, and weekly charts of one stock that she thinks has potential upside, Urban Outfitters ($URBN).
Gold Is Breaking Out as Oil May Be Ready to Move Higher, Fidelity’s Gagliardi Says – Bloomberg
John Gagliardi of Fidelity made an appearance on Bloomberg today to share his thoughts on Gold.
Only Price Pays! Always Wait for Confirmation – Yuriy Matso
Yuriy Matso examines several technical indicators and emphasizes the importance of being patient.
Top 10 Tweets
$SPX $SPY big spot here filling the gap and at former 2940 resistance. We'll see it digs in here pic.twitter.com/twqmoL6i2Z
— Gregory Krupinski (@G_krupins) October 1, 2019
Filling the month-ago gap: normal. Outside day: not so normal. Strength of underlying trend thus being tested yet again. "We will know in the fullness of time…" — Ed Hart pic.twitter.com/wLFkJIvSla
— Walter Deemer (@WalterDeemer) October 1, 2019
we look for #levelsofinterest which have the potential to become support.$SPY is testing prior resistance from August as well as VWAP anchored from;
June low (green)
August high (red)
August gap lower (purple)
below this cluster is the trend line pic.twitter.com/oXXIftIkvD— Brian Shannon, CMT (@alphatrends) October 1, 2019
oh small caps, you love to mess with people, don't you pic.twitter.com/uGUkGHoHXf
— BostonCharts (@bostonchaahhts) October 1, 2019
For long-term investors, when in doubt, zoom out.
12moROC ranking for asset classes as of the market close, Sept 30th:
1. Long-term Treasuries
2. U.S. Stocks
3. International Stocks
4. U.S. Small-Cap
5. Money Market / T-bills
6. CommoditiesI don't see any reason to freak out. pic.twitter.com/nfTcz3RWJZ
— Adam D. Koos, CFP®, CMT (@AdamKoos) October 1, 2019
The dollar is hitting its highest level since May 2017 versus its peers. pic.twitter.com/m3JYXgN55O
— Lisa Abramowicz (@lisaabramowicz1) October 1, 2019
New Zealand stocks relative to US stocks breaking to new 10 year highs pic.twitter.com/vh07cyqDlz
— Louis (@HaumiCharts) October 1, 2019
$AMTD At -24%, this is setting up to be the biggest down day since the tech bubble! April 19, 1999 pic.twitter.com/6nYnwhwX9w
— Robert Lesnicki (@Robertlesnicki) October 1, 2019
Thanks a lot Robinhood
(sidenote: I would love to know what Vanguard's share price would look like over this same period) pic.twitter.com/hbGxgBkDHs
— Ben Carlson (@awealthofcs) October 1, 2019
Pour some sugar on me: pic.twitter.com/A01ctM4lI0
— Uncle Rico (@UncleRico77) October 1, 2019
Upcoming Events
Thursday, October 3rd – CMT Association New York Chapter Meeting Featuring Todd Sohn, CMT
Thursday, October 3rd – Atlanta Chapter Meeting Featuring Katie Stockton, CMT
Sunday, October 6th – A Look At The Markets Into Next Week Using TrendSpider w/ Guest Patrick Dunuwila from “The Chart Report”
Wednesday, October 9th – Webcast: “The Market Between Now And Year-End” with Ralph Acampora, CMT
You’re all caught up now. Thanks for reading!