Wednesday, January 8th, 2020
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 161 points or 0.56%. The S&P 500 and Nasdaq moved higher by 0.49% and 0.67%, respectively. The Russell 2000 was the weakest of the major averages but still gained 0.32%.
Sectors: Technology led, gaining 1.07%. Energy lagged, falling 1.65%.
Commodities: Crude Oil futures dropped 4.32% to $59.98 per barrel. Gold futures fell 1.07% to $1,558 per ounce.
Currencies: The US Dollar Index rose by 0.32%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.874%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day is from a blog post by Michael Batnick (@michaelbatnick). It’s a chart of the S&P 500 (total return) since the low of the Great Financial Crisis in 2009. The chart illustrates the proverbial “wall of worry” that this secular bull market has climbed. Michael labeled over 30 different potential reasons to sell that investors have faced over the past decade. Despite all of these daunting headlines, the S&P 500 was able to return 495%. We like this chart because it reiterates our belief that news can be very misleading to market participants. It’s interesting to see that some of these reasons to sell proved to be great buying opportunities, in hindsight. Instead of letting the news guide your investment decisions, we think it’s far better (and less stressful) to follow the trend.
Quote of the Day
“Today’s headlines and history’s judgment are rarely the same.”
– Condoleezza Rice (Former US Secretary of State)
How Stocks Do During Geopolitical Events – LPL Financial Research
In this note, the team at LPL Financial Research takes a look at how stocks have historically performed during times of conflict. The results may surprise you.
Markets Gone Wild! – Bespoke
Bespoke takes a quick look at the volatile reversals that occurred in Gold and Oil today.
Long-Term Oil Prices Headed Lower, BofA Merrill’s Ciana Says – Bloomberg
Paul Ciana of BofA Merrill Lynch breaks down the technical outlook for Crude Oil.
Charlie Bilello’s 2020 Bond Market Outlook – TD Ameritrade Network
Charlie Bilello made an appearance on TD Ameritrade Network today to share his macro outlook.
Traders Grapple with Tesla’s Roaring Run – CNBC
Ari Wald and Quint Tatro share their thoughts on the recent surge in shares of Tesla ($TSLA).
Top 10 Tweets
S&P 500 futures hit a 10-day low and a 52-week high in the same session today. The last time that happened was…never.
Way to do your thing, dip-buyers.
— SentimenTrader (@sentimentrader) January 8, 2020
— Michael Kahn, CMT (@mnkahn) January 8, 2020
Wicked candle for an all-time high! pic.twitter.com/crZfOptoKV
— 🔴 I. Vodenitcharov CFA CMT (@iv_technicals) January 8, 2020
This is $SPX annual chart (each bar = a year)
The chart goes back 75 yrs; a long enough period which included many crises, panics + wars – yet how many red bars do you see?
Nobody knows when the next red bar will show up; but in the grand scheme of things, does it matter? pic.twitter.com/VWQJBMw6fQ
— Puru Saxena (@saxena_puru) January 8, 2020
S&P mid-caps are right at their Sep 2018 peak while small-caps are 7% below their Sep 2018 and large-caps are 11% above theirs. pic.twitter.com/Gthcow1YQJ
— Willie Delwiche (@WillieDelwiche) January 8, 2020
Biggest one-day drop for the 10-year Treasury yield that ended up being completely erased (and then some) since the night of the U.S. 2016 presidential election and ensuing session. pic.twitter.com/uEh3XVXT1K
— Luke Kawa (@LJKawa) January 8, 2020
— J.C. Parets (@allstarcharts) January 8, 2020
Gold finally has a down day. pic.twitter.com/YOdicum9id
— Eddy Elfenbein (@EddyElfenbein) January 8, 2020
Going to be hard for a lot of people to not fade the next Crude spike on Middle east headlines pic.twitter.com/aFLNu3QeH7
— Tom Hearden (@followtheh) January 8, 2020
— BostonCharts (@bostonchaahhts) January 8, 2020
You’re all caught up now. Thanks for reading!