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Today’s Summary
Monday, June 3rd, 2019
Indices: US stocks were a mixed bag in today’s session. The Dow Jones Industrial Average closed more or less flat, gaining only 4 points or 0.02%. The S&P 500 fell 0.28% while the Nasdaq tumbled 1.61%. The small-cap Russell 2000 was the strongest of the major indices, finishing higher by 0.31%.
Sectors: Materials led, gaining 3.15%. Communications lagged falling 3.14%.
Commodities: WTI Crude Oil futures fell 0.53% to settle at a three-month low of $53.25 per barrel. Gold futures jumped 1.38% to a three-month high of $1,330 per ounce.
Currencies: The US Dollar Index fell 0.55%.
Interest Rates: The US 10-year Treasury Yield fell to 2.071%
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared on Twitter by Rich Meatto (@koyfinTrader). It’s an area chart of the Nasdaq 100 ETF ($QQQ) with a histogram in red showing the % drawdown. Meatto notes that the current drawdown has exceeded 10%, meaning the index has just crossed into correction territory. Typically a correction is marked by a 10% decline, while a bear market is marked by a 20% decline. Despite this weakness, the Nasdaq is still up over 10% year-to-date and leading the rest of the major US indices.
Quote of The Day
“Madness is the exception in individuals but the rule in groups.”
– Fredrich Nietzsche (Philosopher)
Koyfin is a user-friendly web-based charting platform that helps users visualize and analyze data. This piece covers a presentation Koyfin gave in partnership with the CMT Association where they discuss some of the best ways to use the platform.
Momentum Monday…Oy – Howard Lindzon
In this week’s “Momentum Monday” video, Howard Lindzon and Ivaylo Ivanhoff discuss some of the trends they’re watching. They rip through dozens of charts and discuss the recent underperformance from large-cap tech stocks.
Equalweights Triumph – Bespoke
Some of the largest stocks in the market have been under pressure lately, including $AAPL, $AMZN, $GOOGL, and $FB. In this note, Bespoke examines the bifurcation that this is causing between equal-weight and market-cap weighted indexes.
More Trouble Ahead for Investors – Tom Aspray – Forbes
In this article, technician and Forbes columnist, Tom Aspray explains why he thinks that the technical outlook for the S&P 500 is growing increasingly bearish.
Visualizing Sector Performance – Adam Grimes
Adam Grimes breaks down his preferred method of sector analysis. He’s found that the best way to visualizes areas of strength in the market is by charting each sector relative to the S&P 500 and observing the resulting trends.
Top 10 Tweets
Both Transports and Small Caps closed UP today. They tend to lead.
— David Brady (@GlobalProTrader) June 3, 2019
S&P 500 oversold for the first time since Christmas Eve pic.twitter.com/LVgpM1MT5q
— Luke Kawa (@LJKawa) June 3, 2019
These air pockets in FAANG stocks on reports of what seems procedural jurisdiction-splitting among government agencies says a lot more about fragile investor psychology and crowding in mega-cap growth than it does about the prospects for deep or lasting harm to their businesses. pic.twitter.com/Oa5T5DZgHl
— Michael Santoli (@michaelsantoli) June 3, 2019
Here's the Put/Call ratio plotted in the lower-pane w/ vertical lines indicating instances when it's risen above 1.40 in the last four years vs. the $SPX.
It's notable when the ratio rises > 1.20
It's extreme when it rises > 1.40
Interesting/Actionable when in an uptrend IMO pic.twitter.com/X2eDKPoBYz
— Adam D. Koos, CFP®, CMT (@AdamKoos) June 3, 2019
Check out 4-week equity fund flows. Not quite December territory but investors broadly running for the hills. pic.twitter.com/N6uHHYFjp1
— Tony Welch, CFA, CMT (@tonywelch17) June 3, 2019
Bond bulls tapering off as the 10-year yield plunges — how far will the treasuries rally go? $TNX $TLT $IEF pic.twitter.com/tlFhDKUlhX
— Topdown Charts (@topdowncharts) June 3, 2019
Investors chasing long duration treasuries here in a "flight to safety" will likely learn the hard way that these are not risk-free instruments. Most overbought levels since 2008, well above upper bollinger band. $TLT pic.twitter.com/eIeOrEYGma
— Charlie Bilello (@charliebilello) June 3, 2019
$Crude tagged support at the Fib .618 retracement early this morning. Now for the $64,000 question: Will it hold or is oil going to continue to spill and try to establish a double bottom? $USOIL $Crude $WTI #CL_F pic.twitter.com/fVTVTk34nM
— Jason Pearce (@TheJaytrader) June 3, 2019
#Gold in the last three days! From USD 1275 to USD 1325. Stock market anxiety rising… pic.twitter.com/FeuHbA64Rl
— jeroen blokland (@jsblokland) June 3, 2019