Friday, January 10th, 2020
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average falling 133 points or 0.46%. The S&P 500 and Nasdaq slipped 0.29% and 0.26%, respectively. The Russell 2000 closed lower by 0.47%.
Sectors: Real Estate led, gaining 0.94%. Financials lagged, falling 0.74%.
Commodities: Crude Oil futures moved lower by 0.70% to $59.17 per barrel. Gold futures gained 0.53% to $1,562 per ounce.
Currencies: The US Dollar Index inched lower by 0.09%.
Interest Rates: The US 10-year Treasury yield fell to 1.82%.
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 the S&P 500 over the past year. In the note, Frank points out that the S&P 500 has gone 65 trading days without a daily decline of 1% or more. The last time we saw a decline of that magnitude was three months ago, on October 8th, 2019. The S&P 500 has been resilient despite the headlines coming out of the Middle East. A pullback in the next few weeks would be perfectly normal and healthy. When we do inevitably pullback, it will feel jarring, considering the lack of downward volatility over the past few months. Also, the financial media and the perma-bears will probably make a bigger deal out of it than it actually is.
Quote of the Day
“Music always sounds better on Friday.”
– Lou Brutus (Radio Host)
Stick With What’s Working in 2020 – The Chart Report
In this week’s Chart of the Week column, we examine the Technology sector and some of the industry groups within it that are showing relative strength.
This Stock Group Just Made Two Golden Crosses, and Options Traders are Pouring in – CNBC
Christian Fromhertz of Tribecca Trade Group takes a look at the Chinese Internet ETF, $KWEB. He points out that the ETF is beginning to show strength, and he outlines a way to play it using options.
The Magic of Consumer Staples – All Star Charts
JC Parets breaks down a ratio chart of Consumer Staples vs. the S&P 500. He explains why this ratio is currently bullish for the broader market.
Extreme & Historic Complacency Building in Markets – Macro Charts
In this blog post, Macro Charts argues that stocks are due for a short-term pullback as market participants begin to show signs of complacency.
Stock Market Video Analysis for Week Ending 1/10/20 – AlphaTrends.net
Here’s Brian Shannon’s weekly stock market analysis video, where he recaps price action from the past week and shares some charts to keep an eye on next week.
Top 10 Tweets
It seems that every week "the most important economic report" is coming next. It isn't, but the media has a job to do, & that's fine. Have a price-based process that dictates what gets you in & what gets you out, and don't fall into the news hype trap. Price leads, not news. $SPX pic.twitter.com/dMFW4TEjw5
— Larry Tentarelli (@LMT978) January 10, 2020
— SentimenTrader (@sentimentrader) January 10, 2020
I don't use them in my process, but Fibonacci ratios are an interesting way to interpret the market. Based on fibs, $SPX is approaching the 161.8 extension of the 12/18 bear mkt around 3305 or so. Long term, if we're over 2950 or so, next fib is up at 4420 (~ +35% from today) pic.twitter.com/R8FZP3cofE
— Tex (@theycallmetex) January 10, 2020
Improved global rally participation of the past few months remains intact – 20% of global markets joined the S&P 500 at new highs yesterday (and none were at new lows). pic.twitter.com/0LtO9rKn29
— Willie Delwiche (@WillieDelwiche) January 10, 2020
S&P, EURO STOXX 50 & MSCI Asia APEX 50 Chart – You know what happened in 2019. It's very early in 2020, but so far (in US$) Asia is in the lead: APEX 50 +3.6%, S&P +1.4%, and SX5E +.21% pic.twitter.com/KKEiru6uKD
— Wolfe Daily Howl (@WolfeDailyHowl) January 10, 2020
— Dana Lyons (@JLyonsFundMgmt) January 10, 2020
Super controversial sector here right now. Nice absolute strength in the $XLE over the last several weeks, but energy continues to print relative lows vs. $SPY $SPX. In addition to breaking the relative downtrend, would like to see some time spent > 200d. Too much to ask? pic.twitter.com/9VJ0TmqPQR
— Drew Wells, CIMA®, CRPC® (@DrewTheCharts) January 10, 2020
— Yuriy Matso (@yuriymatso) January 10, 2020
The return dispersion of retail stocks is impressive. Some companies are figuring it out in an amazon world, others are not.
1Y % chg
— Koyfin (@KoyfinCharts) January 10, 2020
Fake meat rallying. The rally is officially madness 😜 pic.twitter.com/S25eHnCqpO
— Aaron (@ATMcharts) January 10, 2020