Daily Chart Report ? Wednesday, September 4th, 2019
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Today’s Summary
Wednesday, September 4th, 2019
Indices: US stocks were higher in today’s session with the Dow Jones Industrial Average closing up 237 points or 0.91%. The Nasdaq was the strongest of the major indices, climbing 1.30%.
Sectors: All 11 sectors of the S&P 500 advanced. Communications led, gaining 1.94%. Health Care lagged, but eked out a small gain of 0.07%.
Commodities: Crude Oil futures jumped 4.27% to $56.21 per barrel. Gold futures rose 0.30% to a new multi-year high of $1,560 per ounce.
Currencies: The US Dollar Index fell 0.55%.
Interest Rates: The US 10-year Treasury yield rose to 1.471%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Arthur Hill (@ArthurHill). The chart shows the three defensive sectors of the S&P 500; Utilities, Real Estate, and Consumer Staples. Arthur points out that all three of these sectors are currently at all-time highs. This flight to safety has been going on for the majority of 2019. We’ve written several pieces on what we call “the safety trade”. Leadership from these three defensive sectors is typically a bearish sign, as these are some of the “safer” areas of the market. However, many argue that investors are piling into these sectors in search of yield and that the safety trade is really a result of historically low-interest rates.
Quote of The Day
Top Links
Good Riddance to August, but September Could be Just as Bumpy for Stocks, History Shows – USA Today
Here’s an article from USA Today that examines stock market seasonality in September, featuring thoughts from notable Technicians like Ryan Detrick.
Multi-decade Breakout? Or Another False Start? – All Star Charts
JC Parets of All Star Charts breaks down a chart of the Value Line Geometric Index. This serves as a broad measure of the market and it’s currently sitting at a key inflection point.
Down August, Up YTD, No Worries – Almanac Trader
Seasonality Expert Jeff Hirsch points out that September is historically the worst-performing month. However, he found that September returns tend to be positive in years when the market is up YTD but down in August (like in 2019).
Utilities (XLU) Still on the Up and Up – Bespoke
Bespoke takes a look at the Utilities sector ($XLU). They explain that it can continue higher despite being extremely overbought.
Investors Are Too Pessimistic About the S&P 500, BofA Merrill’s Suttmeier Says – Bloomberg
Technical Strategist at Bank of America Merrill Lynch, Steve Suttmeier joined host Abigail Doolittle to discuss market sentiment and what the put/call ratio could be suggesting for the S&P 500.
Top 10 Tweets
You’re all caught up now. Thanks for reading!