Daily Chart Report ? Thursday, January 30th 2020
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Today’s Summary
Thursday, January 30th, 2020
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 125 points or 0.43%. The S&P 500 gained 0.31%, while the Nasdaq rose 0.26%. The Russell 2000 was the weakest of the major averages, slipping just 0.06%.
Sectors: Financials led, gaining 1.26%. Communications lagged, falling 1.01%.
Commodities: Crude Oil futures inched lower by 0.24% to $52.95 per barrel. Gold futures slipped 0.18% to $1,579 per ounce.
Currencies: The US Dollar Index fell 0.20%
Interest Rates: The US 10-year Treasury yield moved lower to 1.591%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Jon Krinsky (@jpkrinskypga) via Carl Quintanilla (@carlquintanilla). It’s a daily candlestick chart of the S&P 500 with the 20-day moving average (purple), 50-day moving average (green) and 200-day moving average (yellow). The S&P 500 broke below the 20-day moving average earlier this week. While it’s still trading about 3% above the 50-day moving average, Jon warns, “Should the 50 DMA not hold, the risk is a bigger 5-6% move down as there is a ‘volume pocket’ towards the 3,000 level.” We like this chart because it’s yet another great example of how charts enable you to completely tune out the noise while still managing risk responsibly and objectively.
Quote of the Day
“The key is not the will to win. Everybody has that. It is the will to prepare to win that is important.”
– Bobby Knight (Basketball Coach)
Top Links
Market May be Immune to Coronavirus – Almanac Trader
Jeff Hirsch uses historical data to show how markets tend to perform during global health epidemics like the coronavirus.
Two Uncorrelated Trades with ‘High’ Potential – All Star Charts
Tom Bruni outlines two different stocks within the Cannabis space that are offering asymmetric risk/reward while being uncorrelated to the broader market.
Moving Averages: Everything You Need to Know – SentimenTrader
For those of you who are new to Technical Analysis, here’s a great tutorial on moving averages from Troy Bombardia of SentimenTrader.
Are People Queueing Up For a Big Mac? – StockCharts.com
In this piece, Julius de Kempenaer uses a Relative Rotation Graph to show that McDonald’s ($MCD) is shaping up to be the new leader within the Consumer Discretionary sector.
Chart of Bond ETF HYG Signals Entry Point for Stock Bulls – Schaeffer’s Investment Research
The team at Schaeffer’s Investment Research breaks down a chart of the High Yield Bond ETF, $HYG. They explain that a bounce in $HYG would be constructive for Stocks.
Top 10 Tweets
You’re all caught up now. Thanks for reading!