Daily Chart Report ? Monday, March 18th, 2019
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Today’s Summary
Monday, March 18th, 2019
Indices: US stocks were higher in today’s session, with the Dow Jones Industrial Average closing up 65 points or 0.25%. Small-caps were relatively strong with the Russell 2000 finishing up 0.67%.
Sectors: Energy led, with a gain of 1.39%, while Communications lagged, falling 0.85%.
Commodities: WTI Crude Oil futures were higher by 0.97% to settle at a four-month high of $59.09 per barrel. Gold futures inched higher by 0.18%, to settle at $1,305 per ounce.
Currencies: The US Dollar Index was relatively unchanged.
Interest Rates: The US 10-year Treasury yield moved slightly higher to 2.603%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s chart of the day was shared in a blog post titled “The Bullish Base in Bonds” by Tom Bruni of All Star Charts. It’s a daily bar chart of $TLT, the popular 20+ Year Treasury bond ETF. You can see that price is on the verge of breaking out of a long-term base and has formed a bullish inverse head and shoulders pattern. In the blog post, Bruni explains that this is an attractive trade because risk & reward is so well-defined. “This thesis is only valid if prices break above $123. Below that, there’s no reason to be long and a neutral approach is best.”
Quote of The Day
“The market will do whatever it has to do to embarrass the greatest number of people to the greatest extent possible.”
– Walter Deemer (Technical Analyst)
Top Links
The US is Range-Bound, but What About India – The Chart Report
Technical Analyst, JC Parets, was recently interviewed on India’s “ET NOW.” He pointed out that US markets are in a choppy trading range with a flat 200-day moving average. He emphasizes that other global markets are presenting better risk & reward opportunities right now.
The Best of the Best – The Chart Report
“If you trade the averages, you get average returns.” This report argues that individual stocks are currently presenting better opportunities than the broader market averages.
A Pairs Trade: Japan vs. US – Tom Bruni – Real Vision
In this interview from Real Vision, Tom Bruni of All Star Charts presents one of his favorite trade ideas. He thinks Japanese stocks look weak relative to the United States and suggests a pairs trade where one would short Japanese equities while going long U.S. stocks.
Record High But Still Down Over 40% – Bespoke
This brief note from Bespoke does a deep dive on Brazil’s stock market. They explain that the Brazilian Ibovespa has seen a 40% rally off the lows in recent months, but is still down over 40% from the highs it made in 2008.
Germany Breakout Bullish For Stocks in the States! – Chris Kimble
In this blog post, Chris Kimble explains that the German Dax is breaking out and argues that it will likely give a lift to U.S. stocks as well.