Daily Chart Report ? Friday, July 5th, 2019
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Today’s Summary
Friday, July 5th, 2019
Indices: US stocks were slightly lower in today’s session with the Dow Jones Industrial Average falling 44 points or 0.16%. The Russell 2000 was the only major index to close positive, gaining 0.22%.
Sectors: Financials led, gaining 0.28%. Health Care lagged, falling 0.69%.
Commodities: Crude Oil futures rose 1.09% to $57.76 per barrel. Gold futures fell 1.41% to settle at $1,401 per ounce.
Currencies: The US Dollar Index gained 0.49%.
Interest Rates: The US 10-year Treasury yield moved back above 2% to 2.039%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s chart of the day was shared in an article titled “Knee High by the Fourth of July” by Shane Murphy (@murphycharts). It’s a weekly ratio chart of the Financial Sector ($XLF) relative to the S&P 500 ($SPY). In the article, Shane notes that Financials were the best performing sector in Q2. He adds; “I consider this evidence that the recent move to all-time highs may prove to be sustainable in the long run. If stocks are going higher, we want to see financials participating.”Despite the recent strength from Financials, they’re still underperforming the S&P 500 on a longer time horizon, as shown by this chart. However, Shane points to the bullish RSI divergence as an indication that the downtrend may reverse soon, meaning Financials will outperform the S&P 500. Strength from the Financial sector would help lift the small-cap Russel 2000 index, as it is heavily weighted towards Financials.
Quote of The Day
“Showing off is the fool’s idea of glory.”
– Bruce Lee (Actor)
Top Links
Here is an in-depth analysis of the Financial sector from Mark Newton. The piece is packed with charts that outline his bullish thesis on the sector. In addition, he offers up the five best chart setups within the space.
You Thought the World was Ending, You Thought Wrong - Stefan Cheplick
The headlines and newsflow can seem pretty alarming at times, but it's important to take a step back and realize that the S&P 500 is at all-time highs. This is a great read from Stefan Cheplick that explores the wall of worry that this bull market has climbed.
Golden Cross for Health Care (XLV) - Bespoke
The Health Care sector ($XLV) has been the worst performing sector year-to-date; however Bespoke points out that a "golden cross" is forming on the chart right now. This bullish signal occurs when the 50-DMA crosses above the 200-DMA.
Podcast with James Brodie, Athena Financial Solutions - Technical Analysis Radio
In this podcast, JC Parets interviews James Broadie about his extensive career in Finance. They also discuss what he's seeing from Gold, EURJPY and Interest Rates and how traders should play them.
The S&P Just Broke Out of a Two-Year Consolidation But There are Still Some Pockets of Concern - StockCharts.com
It's hard not to be bullish here with the S&P 500 breaking out to new all-time highs. In this article, Julius de Kempenaer points out a few red flags that he thinks could potentially halt this rally.
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