Daily Chart Report ? Thursday, June 20th, 2019
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Today’s Summary
Thursday, June 20th, 2019
Indices: US stocks jumped higher in today’s session with the Dow Jones Industrial Average gaining 249 points or 0.94%. The S&P 500 gained 0.95% and closed at a record high.
Sectors: All 11 S&P 500 sectors finished positive. Energy led, gaining 2.17%. Healthcare and Financials lagged but both managed to gain 0.44%.
Commodities: WTI Crude Oil futures surged 5.40% to settle at $56.65 per barrel. Gold futures had their best single-day percentage gain in years and ended at a 5-year high. The precious metal gapped above long-term resistance ending over 3.30% higher to trade at $1,393 per ounce.
Currencies: The US Dollar Index fell 0.50%.
Interest Rates: The US 10-year Treasury yield fell under 2%, its lowest level since 2016.
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 note from Bespoke titled: “Bullish Sentiment Very Low For a Market at New Highs”. The chart shows the S&P 500 in red, with AAII bullish sentiment in blue. We like the chart because it illustrates how pessimistic investors are despite the fact that the S&P 500 is at record highs. In the note, Bespoke explains:
“The market may be reaching all-time highs today, but sentiment is hardly reflective of that. The AAII weekly sentiment survey continues to see modest improvements in bullish sentiment as it rose 2.7% this week to 29.51%, returning it to its normal range (less than 1 standard deviation from the historical average). But this improvement has not necessarily been at the same pace as the market’s rally off of recent lows. Bullish sentiment is now around 10 percentage points off of where it stood the last time the S&P 500 was at these levels.
Sentiment tends to follow price. If the S&P 500 continues to move higher, it could force pessimistic investors off the sidelines, and help propel the market higher.
Quote of The Day
“Remember, today is the tomorrow you worried about yesterday.”
– Dale Carnegie (American Writer)
Top Links
The Three Major Developments Today – The Chart Report
It was a wild day! The S&P 500 hit a record high, Gold hit a 5-year high, and the US 10-year Treasury yield fell below 2%. We highlight what some of the smartest technicians are saying about these milestones.
“Gold”-ilocks and the Three…Bulls? – The Chart Report
Gold futures are breaking out of long-term resistance to levels that haven’t been seen since 2013! In this piece, we take a look at metals and miners and discuss whether the rally is likely to continue.
The Dollar Beats All Currencies in the G-10 Except for the Japanese Yen – StockCharts.com
In this piece, Julius de Kempenaer analyzes a Relative Rotation Graph showing the G-10 currency universe relative to the US Dollar. Relative Rotation Graphs or RRGs are a unique way of visualizing relative strength.
An Extreme in Investor Fear and Pessimism – The Fat Pitch
Urban Carmel offers his current read on sentiment. He points out that investors are still very pessimistic with fund managers showing the highest cash allocation in 16 years. He argues that this bearish sentiment is a positive for stocks.
Dude…Did You See Gold Price? – Howard Lindzon
Here’s a great read from Howard Lindzon’s blog. He discusses today’s surge in Gold prices and pokes fun at the sudden resurfacing of baby-booming gold bugs. He also features comments from The Chart Report contributor, Nick Marino.
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