Daily Chart Report ? Tuesday, March 3rd, 2020
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Today’s Summary
Tuesday, March 3rd, 2020
Indices: US stocks closed lower with the Dow Jones Industrial Average shedding 786 points or 2.94%. The S&P 500 and Nasdaq dropped 2.81% and 2.99%, respectively. The Russell 2000 wasn’t as weak as the other major indices but still fell 2.13%.
Sectors: All 11 sectors closed lower. Real Estate led, but still slipped 0.08%. Technology lagged, falling 3.80%.
Commodities: Crude Oil futures fell 0.88% to $47.10 per barrel. Gold futures surged 3.23% to $1,642 per ounce.
Currencies: The US Dollar Index moved lower by 0.23%.
Interest Rates: The US 10-year Treasury yield closed at 1.02%, after briefly falling below 1% for the first time.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Macro Charts (@MacroCharts). It’s a daily bar chart of the US 10-year Treasury yield. In our Chart of the Day a couple of weeks ago, we highlighted the fact that the US 10-year Treasury Bond was attempting to break above a key resistance level, which we said would “likely send the yield on the 10-year to fresh all-time lows.” Sure enough, the 10-year Bond broke out above that resistance level, and the 10-year yield tumbled to record lows. Today, the yield on the 10-year fell below 1% for the first time ever. The speed at which yields have dropped over the past few days has been remarkable. In fact, this has been the largest 5-day decline for the 10-year yield going back to the start of our data in 1980. Macro Charts emphasizes that the move in yields is “breaking all historic records.” He adds that the 10-year yield is approaching his downside objective and suggests that yields could be due for some mean reversion or a bounce in the near-term.
Quote of the Day
“It always seems impossible until it’s done.”
– Nelson Mandela (Former President of South Africa)
Top Links
S&P 500 Only in Stage Two of Three-Stage Sell-off, Oppenheimer Analyst Says – CNBC
Ari Wald of Oppenheimer discusses the possibility that stocks will retest last week’s lows and what to watch for if they do.
Which Stocks are We Buying? – All Star Charts
JC Parets highlights the relative strength in Emerging Markets and explains why he thinks Caterpillar ($CAT) is a good buy here.
With Inside Weeks, We Need Just A Tad More Patience – Talk Markets
Michele Schneider takes a look at what she calls the “Economic Modern Family” of ETFs, including $IWM, $IYT, $XRT, $SMH, $IBB, and $KRE. She emphasizes that the broader market needs these ETFs to hold above last week’s lows.
Bloomberg Options Action 3-3-20 – Bloomberg
In this clip from Bloomberg, Christian Fromhertz of Tribeca Trade Group shares his thoughts on the break out in Bonds and lays out an options trade on Netflix ($NFLX).
We Might Need a Retest – The Reformed Broker
Michael Batnick and Josh Brown debate several hot topics, including whether or not the market needs to retest last week’s lows.
Top 10 Tweets
You’re all caught up now. Thanks for reading!