Daily Chart Report ? Monday, May 20th, 2019
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Today’s Summary
Monday, May 20th, 2019
Indices: US stocks were lower in today’s session, with the Dow Jones Industrial Average falling 84 points or 0.33%. The Nasdaq was the worst of the major indices, falling 1.46%.
Sectors: Utilities led, gaining 0.14%. Technology lagged, falling 1.74%.
Commodities: WTI Crude Oil futures rose 0.68% to settle at $63.18 per barrel. Gold futures inched up 0.14% to $1,278 per ounce.
Currencies: The US Dollar Index was more or less flat, changing just 0.06%.
Interest Rates: The US 10-year Treasury Yield moved higher to 2.419%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s chart of the day was shared on Twitter by @TeslaCharts. It’s a chart showing the spread between the yield on Tesla’s 2025 corporate bonds and the US 10-year Treasury Yield. As Tesla’s ($TSLA) common stock slices through key support levels, the price of their bonds is falling as well, pushing the G spread on their debt to new all-time highs. The G spread is a risk metric that measures the difference between the yield on a corporate bond and the risk-free yield that one would get from a US Treasury Bond. The uptrend in this chart illustrates that the bond market continues to price in a growing risk of default for the electric car maker.
Quote of The Day
“Trees don’t grow forever, and neither do bull runs. A break is usually needed before the eventual resumption of higher returns”
– Ryan Detrick (Market Strategist)
In this week's chart of the week, we take a look at how mid-cap stocks are performing relative to their large-cap peers. We explain why we think the charts are pointing to trouble ahead for mid-cap stocks.
The Week Ahead: Double Top or Not? - Forbes
In this article, Forbes contributor Tom Aspray takes a look at what the technicals are suggesting for the stock market. He uses a long-term monthly chart in his analysis and says that it's too early to call a double-top formation in the chart of the S&P 500.
$BTC: Straight Up or Pull Back? - Fibonacci.com
Bitcoin has been surging the past couple of months. It began this year around $3,700 and is now trading around $7,800! In this piece, Tarek Saab of Fibonacci.com offers up some levels of interest on the chart of BTC/USD.
The Great Chicken Bubble of the 1850s - Tracy Alloway
One of the roles of a technician is to study the behavior of market participants. From Tulip Mania to Bitcoin we have many examples of economic bubbles where irrational sentiment lead to extreme price movements. Here's an interesting read from Bloomberg's Tracey Alloway that examines the Great Chicken Bubble of 1850.
Rotation Into Defensives - Bespoke
In this note, Bespoke takes a deep dive into the sectors of the S&P 500. They highlight the flight to safety that's underway as investors ditch the more cyclical sectors for defensive sectors like Utilities and Real Estate.
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