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Today’s Summary
Tuesday, December 3rd, 2019
Indices: US stocks continued to slide today with the Dow Jones Industrial Average dropping 280 points or 1.01%. The S&P 500 and Nasdaq closed lower by 0.66% and 0.55%, respectively. The Russell 2000 was stronger than the rest of the major averages but still slipped 0.31%.
Sectors: Real Estate led, gaining 0.76%. Energy lagged, falling 1.49%.
Commodities: Crude Oil futures inched higher by 0.25% to $56.10 per barrel. Gold futures rallied 1.01% to $1,484 per ounce.
Currencies: The US Dollar Index slipped 0.13%.
Interest Rates: The US 10-year Treasury yield fell to 1.717%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
"Equities are in trouble here" pic.twitter.com/qzoM4dBxCw
— Tom Bruni, CMT (@BruniCharting) December 3, 2019
Today’s Chart of the Day was shared on Twitter by Tom Bruni (@BruniCharting). It’s a weekly candlestick chart of the Dow Jones Industrial Average going back over a decade. Tom jokes that “Equities are in trouble here.” It might feel this way with the Volatility Index ($VIX) spiking over 50% in the past four sessions. However, it’s important to note that this spike is coming after a calm period of relatively low volatility. This chart does a great job of putting the recent weakness into perspective. When you take a step back and look at Equities over the long term, this week’s move is nearly invisible. If anything, it still looks like the market is breaking out from a two-year consolidation period and in the process of making another leg higher.
Quote of the Day
Top Links
Midweek Stock Market Price Action Recap – The Trade Risk
in this video, Evan Medeiros sums up some of the most recent technical developments and points out what to keep an eye on for the rest of the week.
I Have 2 Important Questions for You – All Star Charts
JC Parets breaks down two of the most important charts right now. The first is a chart of the Value Line Geometric Index and the second is a chart of Gold relative to US Treasury Bonds.
FOUR Health Care “Diamonds in the Rough” -StockCharts.com
With the Health Care sector showing signs of life, Erin Swenlin offers four stocks within the sector that have attractive chart setups including, $MRTX, $PCRX, $TMO, and $ZGNX.
Review and Outlook – December 2019 – Alpha Insights
In this report, Jeff Huge of Alpha Insights provides an in-depth analysis of some key areas of the market to keep an eye on right now.
The Bears Would Love To See The Dow Turn Weak Here! – Kimble Charting Solutions
Chris Kimble uses a monthly chart to show that the Dow Jones Industrial Average is testing the top of a long-term channel.
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Top 10 Tweets
There's nothing especially interesting about this recent drop except we haven't seen anything like it in two months. pic.twitter.com/96kXBfofdA
— Eddy Elfenbein (@EddyElfenbein) December 3, 2019
As discussed on @BloombergRadio just now, we just had a historically calm period.
It only makes sense we see some larger swings after being spoiled for so long. pic.twitter.com/NgZ9YjhzO8
— Ryan Detrick, CMT (@RyanDetrick) December 3, 2019
Since 1993 when $SPY began trading, had you bought SPY at the close every day and sold at the next open (after hours), you'd be up 722%. Had you done the opposite and bought every open and sold same day's close (intraday), you'd be down 13.7%. https://t.co/H4p1RcpfIn pic.twitter.com/wJaOHhGEVX
— Bespoke (@bespokeinvest) December 3, 2019
$spx gave us a new point of reference as many names gave us things to do. pic.twitter.com/nz1SylVEqq
— Scott Redler (@RedDogT3) December 3, 2019
Update: Volatility Index up 51% over the past 4 trading days, largest spike since July/Aug. $VIX pic.twitter.com/Y3FeNrn1Hi
— Charlie Bilello (@charliebilello) December 3, 2019
Daily % change in S&P 500 vs daily net change in VIX suggests that vols are acting normally or if anything underreacting.
Doesn't scream RECORD VIX SHORTS BURNING. pic.twitter.com/M5WSsGEXTI
— Luke Kawa (@LJKawa) December 3, 2019
#Gold just broke above horizontal resistance & now looking to break up from August downtrend channel. A move above 1495 would resume the uptrend from 4Q18 (channel support recently held)
RSI also breaking out from declining resistance$GLD $GC $GDX $GDXJ $SLV pic.twitter.com/56vU9GfDm6
— Tarek I. Saab (@FibLines) December 3, 2019
Copper has NOT broken down but it has not been putting off good vibes of late. Getting close to the November lows – taking that out would be a negative. pic.twitter.com/Q4WFwv8sHc
— Willie Delwiche (@WillieDelwiche) December 3, 2019
$TSLA is also green in a red tape. Rising relative strength. @MarketSmith pic.twitter.com/Svp39eNAde
— ivanhoff (@ivanhoff2) December 3, 2019
Apple is up over 60% YTD https://t.co/4ogZgTHNPT pic.twitter.com/1XvjpufemK
— OK Sam Ro ? (@SamRo) December 3, 2019
You’re all caught up now. Thanks for reading!