Daily Chart Report ? Wednesday, August 14th, 2019
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Today’s Summary
Wednesday, August 14th, 2019
Indices: US stocks had their worst day of 2019 today with the Dow Jones Industrial Average falling 800 points or 3.05%. The S&P 500 and Nasdaq fell 2.93% and 3.02%respectively.
Sectors: All 11 sectors of the S&P 500 were lower. Utilities led, falling 0.82%. Energy lagged, dropping 3.92%.
Commodities: Crude Oil futures were lower by 3.33% to $55.17 per barrel. Gold futures rose 0.89% to $1,527 per ounce.
Currencies: The US Dollar Index gained 0.15%.
Interest Rates: The US 10-year Treasury yield fell to 1.583%. The closely watched 2-year/10-year yield curve inverted, sparking concerns over the economy.
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 Michael Batnick (@michaelbatnick). It’s a dot plot showing the daily percentage change of the Dow Jones Industrial Average over the past 100 years. Today was without a doubt an ugly day for stocks with the Dow dropping 3.05%. There were a lot of headlines pointing out that today was the 4th largest point drop in the history of the Dow. However, when you normalize the data in percentage terms, today’s decline doesn’t seem nearly as historic. Michael points out that today marked the 307th time that the Dow fell 3% in the past century. It’s silly to quote moves in terms of point drops. In fact, the other 3 largest point drops all occurred last year. The fact that this was one of the largest point drops doesn’t mean a whole lot. If anything, it mostly speaks to the fact that the Dow is higher now than it has been in past years. You need to normalize the data in percentage terms before you can make any historical comparison.
Quote of The Day
Top Links
What the MAGA Index is Signaling About US Stocks – The Chart Report
In this week’s Chart of the Week column, we take a look at a custom benchmark that we call the MAGA index. It’s an equal-weighted average of the four largest US companies (Microsoft, Apple, Google, and Amazon.)
Prior Equity Responses to 2yr-10yr Treasury Yield Curve Inversions – Andrew Thrasher
Technical Analyst, Andrew Thrasher takes a look at the stock market’s response to past yield curve inversions.
A Bearish Continuation Pattern Takes Shape in IWM – StockCharts.com
In this piece, Arthur Hill points out a bearish pattern that’s forming on the chart of the small-cap Russell 2000 ETF, $IWM.
Podcast with Todd Sohn – Technical Analysis Radio
Todd Sohn of Strategas Securities and host, JC Parets discuss the current outlook for US Stocks, Interest Rates, Precious Metals, and sentiment.
BofA Merrill’s Ciana Says Yield Curve Could Invert 50 Basis Points, Gold May Hit $2,300 – Bloomberg
In this clip from Bloomberg, Technical Strategist Paul Ciana and Abigail Doolittle examine the recent 2-year/10-year yield curve inversion. In addition, he shares his thoughts on Gold prices.
Top 10 Tweets
Upcoming Events
August 12th-18th – Chart Pattern Beauty Competition – Post your best chart to Twitter using the hashtag: #TrendSpiderContest19 to win a $100 Amazon Gift Card and more! Click here for details.
You’re all caught up now. Thanks for reading!