Daily Chart Report ? Thursday, January 2nd, 2020
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Today’s Summary
Thursday, January 2nd, 2020
Indices: US stocks rang in the new year on a positive note with the Dow Jones Industrial Average closing higher by 330 points or 1.16%. The Nasdaq was the strongest index gaining 1.33% and the S&P 500 rose 0.84%. The Russell 2000 was the weakest of the major averages slipping 0.10%.
Sectors: Industrials led, gaining 1.89%. Technology came in close second, gaining 1.88%. Utilities lagged, falling 1.25%.
Commodities: Crude Oil futures were relatively flat, changing just 0.08% to settle at $61.15 per barrel. Gold futures moved higher by 0.32% to $1,528 per ounce.
Currencies: The US Dollar Index gained 0.43%.
Interest Rates: The US 10-year Treasury yield fell to 1.877%.
ts, articles, and ideas being shared on the web today!
Chart of the Day
Today's Chart of the Day was shared by JC Parets (@allstarcharts). It's a weekly candlestick chart of the rare earth metals ETF, $REMX. The ETF tracks the companies that are involved with producing, refining, and recycling rare-earth metals such as cerium, manganese, titanium, and tungsten. As you can see, $REMX is in a nasty downtrend and is down nearly 50% over the past two years. Despite this terrible performance, JC points out that the technicals are showing signs of improvement, and he jokes that it's on his "may not be dead after all" list. The ETF recently found support at the 2016 lows around $11-12. Also, it's breaking out of a two-year downtrend line and showing a bullish RSI divergence. It's still in a long-term downtrend, and all-time highs this year are highly unlikely. However, there's reason to believe that $REMX will see some mean reversion in the coming months.
Quote of the Day
“The whole of life is but a moment of time. It is our duty, therefore, to use it, not to misuse it.”
– Plutarch (Greek Biographer)
Top Links
2019 Stock Market Performance - The Chart Report
Here's a quick review of how stocks performed in 2019.
Three Must-See Charts About Small Caps, Long Bond and EM - Bloomberg
Abigail Doolittle of Bloomberg presents three charts that are worth keeping an eye on as we begin the new year.
2019 and 2020 Dogs of the Dow - Bespoke
Bespoke takes a look at the "Dogs of the Dow" strategy. This simple strategy buys the 10 highest yielding Dow components at the start of each year.
Bull Market Structure Continues to Develop - StockCharts.com
In this video, Martin Pring and Greg Schnell discuss some of the bullish technical developments that they're seeing right now.
Yield Curve's the Biggest Fixed Income Story of 2019 - LPL Financial Research
In this note, the team at LPL Financial Research argues that last year's brief yield curve inversion doesn't necessarily mean that a recession is imminent.
Top 10 Tweets
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