Daily Chart Report ? Tuesday, March 24th, 2020
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Today’s Summary
Tuesday, March 24th, 2020
Indices: It was another record-breaking day for US Stocks. The Dow Jones Industrial Average had its best day in 87 years, surging 2,113 points or 11.37%. The S&P 500 and Nasdaq, rallied 9.38% and 8.12%, respectively. The Russell 2000 soared 9.39%.
Sectors: All 11 sectors closed higher by at least 5%. Energy led, rebounding 16.04%. Consumer Staples lagged but still closed higher by 5.10%.
Commodities: Crude Oil futures gained 2.31% to $24.33 per barrel. Gold futures surged 5.95% to $1,661 per ounce.
Currencies: The US Dollar Index fell 0.68%.
Interest Rates: The US 10-year Treasury yield rose to 0.825%.
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 Ryan Detrick (@RyanDetrick). The Dow Jones Industrial Average just had its best day since 1933. Ryan’s table shows some of the best days in the history of the index, as well as the 1, 3, 6, 12, 24, and 60-month forward returns following each of those days. The table speaks to the fact that some of the best days for stocks often occur in bear markets. Almost all of the dates on the table happened during the Great Depression or the 2008 Financial Crisis. The one exception was in October 1987 when the market rebounded from Black Monday. As you can see, the Dow often struggled in the following months and years. On average, the index was down 3.21% one year later. Today’s rally was certainly a much-needed sigh of relief for the bulls. However, if history is any guide, this is in no way a sign that “all is clear” for stocks.
Quote of the Day
“Every bottom starts with a bounce, not every bounce is a bottom…”
– Michael Santoli (Financial Journalist)
Top Links
Is the Treasury Bull Market Finally Over – Eight Fat Swine
Here’s a great conversation between behavioral finance expert, Phil Pearlman, and technician, Chris Kimble.
Best Performing Russell 3,000 Stocks – Bespoke
Bespoke highlights the handful of stocks in the Russell 3000 that have managed to move higher throughout the recent decline.
The Copper & Emerging Markets Signal – All Star Charts
Tom Bruni of All Star Charts explains what Copper futures could be signaling about Emerging Markets.
Three Tips to Prepare for the Next Bull Market – Trend Investor Pro
In this video, Arthur Hill offers some wise advice to help you avoid the next bear market.
The Mid-Cycle Slowdown – What Comes Next? – Optuma
If you’re interested in market cycles, give this a read. Philip Anderson argues that this bear market was a result of the economic cycles, rather than the coronavirus.
Top 10 Tweets
11:1 up day (MAD). Slightly underwhelming for a 9% gain in $SPX (lower panel). Many of these +30:1. Could certainly lead to further gains (scroll up in thread). Past suggests this is more likely the ‘start of the bottoming’ (yellow shading) pic.twitter.com/g3JITGNjRx
— Urban Carmel (@ukarlewitz) March 24, 2020
Chinese Tech is still a relative leader compared to broad US equities. pic.twitter.com/HEGqQVfEAP
— Adaptiv (@adaptiv) March 24, 2020
You’re all caught up now. Thanks for reading!