Daily Chart Report ? Wednesday, May 1st, 2019
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Today’s Summary
Wednesday, May 1st, 2019
Indices: US stocks were lower in today’s session with the Dow Jones Industrial Average falling 163 points or 0.61%. The Russell 2000 fell 0.93% and was the weakest of the major US indices.
Sectors: None of the S&P 500 sectors finished positive. Real Estate led, but closed completely unchanged. Energy lagged, falling 2.00%.
Commodities: WTI Crude Oil futures fell 0.48% to settle at $63.60. Gold Futures fell just 0.10% to $1,278 per ounce.
Currencies: The US Dollar Index rose 0.14%.
Interest Rates: The US 10-year Treasury yield fell to 2.502%.
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 on Twitter by Ryan Detrick (@RyanDetrick). It’s a seasonality chart showing how the S&P 500 has performed on average throughout the year. The chart perfectly illustrates the old Wall Street adage of “Sell in May and Go Away”. The yellow box highlights the next six months (May-October). As you can see, during these months the market tends to chop sideways. In the “Sell in May and Go Away” strategy, an investor would reduce their positions in May, and Buy-back at the beginning of November so that they’re only invested during the best six months. For whatever reason, the real gains tend to occur early and late in the year, but not in the middle. With today being the first day of May, it’ll be interesting to see how the market performs over the next six months.
Quote of The Day
“He who knows when he can fight and when he cannot will be victorious”
– Sun Tsu (Chinese Military Strategist)
Sell in May and Go Away? – The Chart Report
We’re entering the “worst six months” for the stock market according to the Sell in May and Go Away strategy. In this report, we take a look at what the data says about this phenomenon using research from seasonality experts, Ryan Detrick, and Jeff Hirsch.
Podcast: Koyfin Founder Rob Koyfman – Howard Lindzon
Here’s a great podcast from Howard Lindzon and Rob Koyfman. Rob founded Koyfin, a new and intuitive charting platform that we use every day here at The Chart Report. Check it out if you haven’t already done so. It’s free!
Small Caps Not in Style – Bespoke
In this note from Bespoke, they point out that small-cap focused ETFs have lagged their mid and large-cap peers.
Crude Oil Rally Stalling? Stock Market Bulls Hope Not – Chris Kimble
Here’s a short read from Chris Kimble where he breaks down what he’s seeing from the weekly chart of Crude Oil. He explains that Crude Oil has been highly correlated to stocks lately.
Amazon Just Did Something It Hasn’t Done in a Decade – Ari Wald – CNBC
Technical Analyst, Ari Wald made an appearance on CNBC yesterday to discuss Amazon ($AMZN). He points out that Amazon’s chart just formed a bullish “golden cross” pattern, which he thinks could propel the stock higher.
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