Daily Chart Report ? Thursday, February 28th, 2019
Yesterday’s Summary
Thursday, February 28th, 2019
US stocks were a mixed-bag in Wednesday's session, with the Dow Jones Industrial Average closing down 73 points or 0.28%. The S&P 500 was more or less flat, closing down just 0.05%. The Nasdaq and Russell 2000, on the other hand, were able to eke out small gains.
The Industrials sector was the strongest among the S&P 500 sectors while the Communications sector was the weakest.
Crude Oil jumped 2.6% to settle at $56.94 a barrel. Gold was lower by 0.7% and settled at $1,321 an ounce.
Treasury Yields were higher yesterday. The benchmark 10-year Treasury note advanced 5 basis points, to 2.682% The 30-year also advanced 5 basis points, to 3.06%.
Here are some of the best charts, articles, and ideas being shared on the web today. Enjoy!
Chart of the Day
Today's chart of the day was shared by Chris Verrone, head of technical analysis at Strategas Research (@verrone_chris). The chart highlights the recent strength in small-cap stocks. Chris points out that the 40-day percentage change for the small-cap Russell 2000 index is currently in its 99th percentile. While this is an extreme reading in the short-term, he explains that historically, this kind of strength is followed by better than average returns in the long-term. Small-cap stocks are important to watch because they often lead the market higher or lower.
Quote of The Day
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.”
-Albert Einstein, (Physicist & Nobel Prize Winner)
Top Links
David Keller, the founder of Sierra Alpha research, answers some common questions about technical analysis. He explains that technical analysis is vital to risk-management, despite having its limitations.
[Video] What a Dollar Decline Means for China Stocks - Mark Newton - Bloomberg
In this video clip from Bloomberg, Mark Newton joins host Abigail Doolittle to discuss the implications of a weaker US Dollar on Chinese stocks & Copper prices.
[Chart of the Week] Is it Time for Gold Bugs to Profit? - J.C. Parets - All Star Charts
Here's a post from All Star Charts examining the recent strength in Gold. J.C. Parets, explains that Gold might be on the verge of a long-term breakout, despite being a frustrating asset class to own over the past decade.
March 1st Roars Louder for Dow, S&P - Almanac Trader
In this short blog post, seasonality expert, Jeff Hirsch points out that while the last trading day in February has historically been negative, the first trading day in March is often positive.
Why the S&P Needs Bank Strength Right Now! - Kimble Charting Solutions
Chris Kimble, argues that Bank stocks need to pick up strength in order for the stock market rally to continue. He shares an interesting chart that illustrates the relationship between Bank stocks and the S&P 500.
