Tuesday, January 7th, 2020
Indices: US stocks moved lower in today’s session with the Dow Jones Industrial Average falling 120 points or 0.42%. The Nasdaq was flat, while the S&P 500 slipped 0.28%. The Russell 2000 closed lower by 0.30%.
Sectors: 10 out of the 11 sectors closed lower. Communications led for the second day in a row, gaining 0.13%. Real Estate lagged, falling 1.09%.
Commodities: Crude Oil futures slipped 0.22% to $62.69 per barrel. Gold futures moved higher by 0.47% to $1,576 per ounce, its highest level in over six years.
Currencies: The US Dollar Index rose by 0.32%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.811%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— J4 (@J4_fibo) January 7, 2020
Today’s Chart of the Day was shared on Twitter by @J4_fibo. It’s a multi-year chart of the Homebuilders ETF, $XHB. The orange ratio chart in the bottom pane shows $XHB vs. the S&P 500. Some of the top holdings in $XHB include Home Depot ($HD), Johnson Controls ($JCI), and Lowe’s ($LOW). The ETF has been consolidating below former highs for the past couple of months, as buyers attempt to digests the overhead supply leftover from the January 2018 highs. While this is somewhat constructive price action, it’s hard to get aggressively bullish on Homebuilders until price breaks out above those former highs. Also, $XHB has failed to break out on a relative basis, suggesting further underperformance from this industry group.
Quote of the Day
“More people have lost money waiting for corrections and anticipating corrections than in the actual corrections.”
– Peter Lynch (Mutual Fund Manager)
Some Things Never Change – Baird
Here’s a good read from Michael Antonelli of Baird. He explains why investors should take the latest headlines with a grain of salt.
Options Traders Are Going All In; Gold Is Almost The Most Overbought Ever – SentimenTrader
Jason Goepfert points to some signs of froth in the options market. He also touches on the recent strength in Gold.
Our Business Cycle Work is Close to Signaling a Stage III. Guess Which Market That’s Bullish For? – Martin Pring
Respected technical analyst, Martin Pring shares his thoughts on where we currently stand in the business cycle.
Podcast with Quint Tatro, CIO at Joule Financial – Technical Analysis Radio
In this podcast, JC Parets interviews Quint Tatro of Joule Financial. He discusses how he got into technical analysis and how he uses long-term charts to manage his clients’ money.
Tesla: A Holy Sh*t Moment – Top Stock Charts
Here’s a good technical breakdown of Tesla, including some potential price targets now that the stock has broken out to new all-time highs.
Top 10 Tweets
How do stocks do during times of conflict? Here's the Dow with all major conflicts since WWI.
Take note, the best annual return ever took place during WWI. pic.twitter.com/HxZnVlcsMp
— Ryan Detrick, CMT (@RyanDetrick) January 7, 2020
Factoid, nothing more: the S&P 500 just went an entire decade (2010s) without a 20% correction (on a closing price basis) and this is the second time in the past three decades it has done so. pic.twitter.com/kyZbxO0T9C
— Willie Delwiche (@WillieDelwiche) January 7, 2020
Financial sector $XLF looked like it was going to the moon… but #RRGchart shows the sector rotating to the southwest, which suggests relative weakness. RS line breaking down. Caution. pic.twitter.com/BaFYfhTUQH
— David Keller, CMT (@DKellerCMT) January 7, 2020
— Tom Bruni, CMT (@BruniCharting) January 7, 2020
— Shane C. Murphy (@murphycharts) January 7, 2020
Here are the top 30 stocks in the S&P 500 over the past 30 years. You'll never guess #1. pic.twitter.com/1b45HvZtqi
— Charlie Bilello (@charliebilello) January 6, 2020
— 🔴 I. Vodenitcharov CFA CMT (@iv_technicals) January 7, 2020
— OmahaCharts, CMT (@omahacharts) January 7, 2020
Yesterdays POP & DROP in $GOLD is just part of the Bigger Picture working through resistance. Normal Bullish action continues, even if Gold pauses for a while. This chart was in my recent report. $GLD $SLV $GDX $GDXJ $SILJ $JNUG $NUGT pic.twitter.com/omyg5QT9SW
— Chart Freak (@chart_freak) January 7, 2020
Over the next 6 months, are you Bullish or Bearish on Gold?
— The Chart Report (@TheChartReport) January 7, 2020
You’re all caught up now. Thanks for reading!