Daily Chart Report ? Tuesday, June 16th, 2020
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Today’s Summary
Tuesday, June 16th, 2020
Indices: US Stocks continued higher in today’s session with the Dow Jones Industrial Average advancing 527 points or 2.04%. The S&P 500 and Nasdaq rose 1.90% and 1.75%, respectively. The Russell 2000 outperformed, gaining 2.30%.
Sectors: All 11 sectors closed higher for the second day in a row. Energy led, rising 2.88%. Utilities lagged but still gained 0.46%.
Commodities: Crude Oil futures moved higher by 3.39% to $38.38 per barrel. Gold futures rose 0.54% to $1,737 per ounce.
Currencies: The US Dollar Index moved higher by 0.42%.
Interest Rates: The US 10-year Treasury yield rose to 0.763%.
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 in a research note by Frank Cappelleri of Instinet (@FrankCappelleri). It’s a daily bar chart of Gold futures over the past eight months. In the note, Frank explains that Gold has been consolidating above its Feb/March highs of $1,700 per ounce for about two months now. He calls this price action “constructive,” and points out that an inverse head and shoulders pattern remains in play. The measured move from this bullish pattern would bring Gold to test its 2011 all-time highs around $1,900 an ounce. On top of all this, price is above both the 50 and 200-day moving averages, indicating the trend is higher. Keep an eye on this consolidation over the next few days/weeks. There’s plenty of evidence to suggest Gold will resolve higher. If it fails to do so and resolves lower, that would be useful information as well, signaling a change in trend is potentially underway.
Quote of the Day
“In investing, just as in baseball, to put runs on the scoreboard one must watch the playing field, not the scoreboard.”
– Warren Buffett
Top Links
Feelings Drive Short-Term Prices – The Reformed Broker
Josh Brown reminds us that short-term fluctuations in stock prices are driven by sentiment and momentum, rather than fundamentals.
Strength and Weakness – Jotting on Charts
Grant Hawkridge compares the offensive and defensive sectors and breaks down which areas of the market are showing strength/weakness.
What Happens After Historic Rate Declines? – LPL Financial Research
The team at LPL Financial Research explains why they expect the 10-yr Treasury yield to trend higher over the remainder of the year.
Finding Stock Ideas Like FLWS (1-800-Flowers) Using a Top-Down Approach – Dan Russo
In this quick video, Dan Russo of Chaikin Analytics discusses his top-down approach to picking individual stocks.
Why So Many People Are Getting Into the Stock Market – Of Dollars And Data
Here’s a good read from Data Scientist Nick Maggiulli, in which he weighs-in on the recent surge in retail trading activity.
Top 10 Tweets
You’re all caught up now. Thanks for reading!