Daily Chart Report ? Wednesday, December 11th, 2019
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Today’s Summary
Wednesday, December 11th, 2019
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average inching higher by 30 points or 0.11%. The S&P 500 and Nasdaq rose 0.29% and 0.44%, respectively. The Russell 2000 was flat.
Sectors: Materials led, gaining 0.75%. Real Estate lagged for the second day in a row, falling 0.76%.
Commodities: Crude Oil futures fell 1.59% to $58.27 per barrel. Gold futures gained 0.79% to $1,480 per ounce.
Currencies: The US Dollar Index fell 0.30%.
Interest Rates: The US 10-year Treasury Yield moved lower to 1.793%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Eddy Elfenbein (@EddyElfenbein). It’s a chart of the Copper/Gold ratio in blue, compared with the US 10-year Treasury yield, in gray. As you can see, the Copper/Gold ratio and the 10-year yield are highly correlated. Eddy calls this ratio the “Gundlach Ratio” because legendary Bond trader, Jeffery Gundlach, frequently uses the Copper/Gold ratio as a leading indicator to forecast the direction of Interest Rates. In a conference call to his investors last night, Gundlach explained that the Copper/Gold ratio is suggesting that the 10-year yield will rise to 2% in the coming months. For more on why the relationship between the Copper/Gold ratio and Interest Rates exists, check out this paper.
Quote of the Day
– Edward Bulwer-Lytton (Writer)
Top Links
Broad Factual Support For S&P 500 To Move Significantly Higher – Chris Ciovacco
Chris Ciovacco lays out several bullish technical developments in the S&P 500.
The Best Performing Stocks of 2019 – Bespoke
Bespoke takes a look at the best-performing stocks in the Russell 3000.
Hedge Funds Are Ramping Up Their Exposure – SentimenTrader
Jason Goepfert points out that hedge funds have dramatically increased their exposure to stocks recently. He also shares some interesting stats on the Volatility Index ($VIX).
Sector Spotlight: Sector Rotation Remains Bullish – StockCharts.com
Julius de Kempenaer breaks down a relative rotation graph (RRG) of the S&P 500 sectors to highlight which areas of the market are leading/lagging.
Small Caps Poised for a Mid-December Surge – Almanac Trader
Jeff Hirsh explains that Small-cap stocks tend to outperform Large-caps from mid-December until early March.
Top 10 Tweets
How about the ‘new’ Communications sector trading to all time highs over the last few weeks.
Nice mix of growth and value in this basket.$XLC $VZ $GOOGL $FB $CTL pic.twitter.com/AC8Tr5ZZEn
— J4 (@J4_fibo) December 11, 2019
You’re all caught up now. Thanks for reading!