Daily Chart Report ? Thursday, April 9th, 2020
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Today’s Summary
Thursday, April 9th, 2020
Indices: US Stocks ended the shortened week on a positive note with the Dow Jones Industrial Average advancing 286 points or 1.22%. The S&P 500 and Nasdaq rose 1.45% and 0.77%, respectively. The Russell 2000 was by far the strongest of the major indices, gaining 4.62%.
Sectors: 10 of the 11 sectors closed higher. Financials led, gaining 5.36%. Energy fell 0.91% and was the only sector to close lower.
Commodities: Crude Oil futures tumbled 7.57% to $23.19 per barrel. Gold futures soared 3.34% to a multi-year high of $1,741 per ounce.
Currencies: The US Dollar Index fell 0.60%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.725%.
**Reminder: The Stock Market and the Bond Market will both be closed tomorrow in observance of Good Friday**
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The rally since 3/23 has been stronger than after any of the 13 previous waterfalls (last 5 on chart). $DJIA‘s 26% is bigger than any bear market rally except in 1930.
This decline was bigger, so bounce should be bigger, but we are in rare territory for a bear market rally.4/4 pic.twitter.com/zqXMug5NAg— Ed Clissold (@edclissold) April 9, 2020
Today’s Chart of the Day was shared on Twitter by Ed Clissold of Ned Davis Research (@edclissold). The chart compares the bounces that occurred after the past five waterfall declines in the Dow Jones Industrial Average (2002, 2008, 2011, 2018, and 2020). As of today’s close, the Dow is up more than 27% from the March low. As Ed points out, this has been the strongest recovery rally the index has seen in decades. Despite this impressive rebound in just 13 trading days, many continue to dismiss this move as a dead cat bounce, warning that a retest of the low is likely.
Quote of the Day
“There are always flowers for those who want to see them.”
– Henri Matisse (Artist)
Top Links
Louise Yamada Says Dow in Bear Market Rally – Bloomberg
In this interview from Bloomberg, legendary Technician, Louise Yamada says she considers this is a bear market rally until proven otherwise.
The Reality Regarding Real Estate – All Star Charts
Steve Strazza does a deep dive into the beaten-down Real Estate sector.
Silver/Gold Indicator Creates Largest Bullish Pattern in Decades! – Kimble Charting Solutions
Chris Kimble explains what a bullish reversal in the Silver/Gold ratio could mean for Precious Metals as a whole.
Where Do We (Investors) Stand? – David Cox
In this quick video Portfolio Manager, David Cox reviews some of the noteworthy technical developments going on in the market right now.
Has the Dust Settled – Of Dollars And Data
With the Dow up 27% in just 13 trading days, Data Scientist, Nick Maggiulli takes a look at past rallies with similar speed and magnitude.