Daily Chart Report ? Monday, May 18th, 2020
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Today’s Summary
Monday, May 18th, 2020
Indices: US Stocks kicked off the week on a positive note with the Dow Jones Industrial Average climbing 912 points or 3.85%. The S&P 500 and Nasdaq gained 3.15% and 2.44%, respectively. Small-Caps outperformed with the Russell 2000 surging 6.10%.
Sectors: All 11 sectors closed higher. Energy led, jumping 8.17%. Health Care lagged, but still moved higher by 0.83%.
Commodities: The June Crude Oil futures contract screamed higher by 11.35% to $32.77 per barrel. Gold futures dropped 1.27% to $1,734 per ounce.
Currencies: The US Dollar Index fell 0.77%.
Interest Rates: The US 10-year Treasury yield rose to 0.727%.
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 JC Parets (@allstarcharts). It’s a weekly candlestick chart of the Silver ETF, $SLV. On Friday, we highlighted the ongoing breakout in Silver Mining Stocks, which has been fueled by the recent strength in Silver. JC uses this chart to illustrate the power of failed moves. As you can see, that $13 level acted as support several times over the past five years until it briefly broke down in mid-March. Price quickly reclaimed this level, forming a failed breakdown. Failed breakdowns, or bear traps as they’re sometimes called, often lead to sharp rallies. Think about it, when price breaks below a well-defined level, longs get stopped out and bears pile in short. If price fails to follow through to the downside, and instead quickly gets back above that level, it tempts longs to re-enter and forces shorts to buy-to cover. Just remember; “from failed moves come fast moves in the opposite direction!”
Quote of the Day
– Michael Jordan (Basketball Player)
Top Links
Volatility Brings Out Tale of Two Investors – Investopedia
Here’s a fascinating breakdown of market sentiment from Caleb Silver at Investopedia.
The Dip Was Bought Again – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff highlight the strongest themes and trends in the market right now.
Stock Indexes Stabilize – StockCharts.com
Respected analyst John Murphy shares his thoughts on the market. The note is from Friday, but it’s still relevant and worth a read.
The Key to Successful Trading Psychology – TraderFeed
Here’s a good read from Psychologist, Dr. Brett Steenbarger, in which he discusses the importance of self-awareness in trading.
Silver/Gold Indicator Sending Bullish Message – Kimble Charting Solutions
Chris Kimble explains that the recent reversal in the Silver/Gold ratio is bullish for Precious Metals in the short-term.