Daily Chart Report ? Thursday, May 16th, 2019
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Today’s Summary
Thursday, May 16th, 2019
Indices: US stocks were higher in today’s session, with the Dow Jones Industrial Average closing up 215 points or 0.84%. The Nasdaq led the rest of the major indices, finishing up 0.97%.
Sectors: All 11 S&P 500 sectors finished positive today. Materials led, gaining 1.40%. Energy lagged, closing up 0.55%.
Commodities: WTI Crude Oil futures rose 1.88% to settle at $63.18 per barrel. Gold futures fell 0.86% to $1,286.7 per ounce.
Currencies: The US Dollar Index was higher by 0.28%.
Interest Rates: The US 10-year Treasury Yield rose to 2.396%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s chart of the day was shared in a blog post by Hedgopia (&source=gmail&ust=1558130405866000&usg=AFQjCNHzhFITIUkgKA1yGV71pTNhLSBoAw" rel="noopener">@hedgopia). The green line is the S&P 500 and the red line is the ratio of Junk Bonds ($HYG) to 7-10 year US Treasury bonds ($IEF). This ratio ($HYG/$IEF) is a common indicator of risk appetite as it describes the relationship between risky assets and safe haven assets within the credit market. As you can see, the ratio peaked before the S&P 500 began pulling back from all-time highs. If the S&P recovers to new highs, it’ll be important to keep an eye on this ratio to confirm that we’re in the type of risk-on environment that can sustain a bull market.
Quote of The Day
“Arrange whatever pieces come your way.”
– Virginia Woolf (Writer)
‘Godfather’ of chart analysis says Wall Street shouldn’t bet on stock-market records anytime soon – MarketWatch
The legendary Technical Analyst, Ralph Acampora was featured on MarketWatch today. He explained that the market needs to reach fresh highs in order for him to become confidently bullish.
ForexAnalytix’s Perry Says Buy S&P 500 E-minis Down to 2660 – Bloomberg
Joe Perry of ForexAnalytix joined host Abigail Doolittle on Bloomberg yesterday to share his thoughts on the S&P 500. He thinks the S&P will trade lower from here but adds that the 2660 level would be a good place to get long.
Bitcoin Rally Over? – Forex.com
Bitcoin has been surging the past over the past couple months. In this article, Forex.com breaks down the price chart of Bitcoin and argues that the recent strength doesn’t necessarily confirm the end of Bitcoin’s long-term downtrend.
Seasonal Weakness in Silver Usually Lasts Until Late June – Almanac Trader
In this quick read, seasonality expert, Jeff Hirsch takes a deep dive into Silver. He points out that the precious metal tends to peak in May.
Strength in Staples – Dragonfly Capital
Greg Harmon of Dragonfly Capital is bullish on the Consumer Staples sector ($XLP). He likes the fact that price is holding above former resistance, and notes that momentum is in a bullish regime.
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