Daily Chart Report ? Thursday, July 11th, 2019
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Today’s Summary
Thursday, July 11th, 2019
Indices: US stocks were mostly higher in today’s session with the Dow Jones Industrial Average gaining 0.85% and closing above 27,000 for the first time ever! The S&P 500 also closed at an all-time high, while both the Nasdaq and Russell 2000 fell 0.08% and 0.46%, respectively.
Sectors: Industrials led, gaining 0.68%. Real Estate was the only sector to close negative, falling 1.28%.
Commodities: Crude Oil futures dipped 0.38% to $60.20 per barrel. Gold futures fell 0.35% to $1,408 per ounce.
Currencies: The US Dollar Index fell just 0.05%.
Interest Rates: The US 10-year Treasury yield ripped higher to 2.143%
Here are 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 Renaissance Macro (@RenMacLLC). It’s a chart of an equally-weighted Consumer Discretionary index. The cap-weighted version of Consumer Discretionary, $XLY closed at an all-time high today, while the equally weighted version is far from reaching new highs. This shows us that it’s only a handful of the largest Consumer Discretionary names that are doing most of the heavy lifting. As they note, five stocks account for 50% of $XLY (Amazon, Home Depot, McDonald’s, Nike, and Starbucks). An equally-weighted view provides a less “distorted” view of the sector in this particular case, because of how skewed the cap-weighted version is to large-cap stocks like Amazon. The purpose of comparing cap-weighted to an equally-weighted version of the same group is to gauge the breadth of participation from the individual components.
Quote of The Day
“The most bullish thing a market can do is go up.”
– Paul Montgomery (Technical Analyst)
Top Links
Bank of America's Chief Technical Strategist, Steve Suttmeier and Abigail Doolittle discuss what the charts are suggesting for the S&P 500. He also shares his thoughts on the Utilities and Financials.
More Upside for European Equities? - Real Vision
Guy Cerundolo of Cerundolo Investment Research was featured on Real Vision today to outline a bullish trade idea on the German DAX and the French CAC 40.
Reality Proves Sloppier Than Textbook Ideals - R.W. Baird
In this research note, Baird Investment Strategist, Willie Delwiche checks up on sentiment and breadth of the US stock market.
Large-Cap Indices at New Highs, Broader Market Lagging - Hedgopia
This article from Hedgeopia examines the ongoing divergence between large-cap indices and some of the smaller-cap indices such as the Russell 2000 and the Dow Transports.
Let's Talk About Pullbacks and Corrections - LPL Financial Research
In this note from LPL Financial Research, they argue that the S&P 500 is due for a pullback or correction. They point out that since 1950, the S&P 500 has averaged three separate 5% pullbacks per year. This year, we've only had one.
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