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Today’s Summary
Monday, January 27th, 2020
Indices: US stocks had their worst day since October. The Dow Jones Industrial Average dropped 454 points or 1.57%. The S&P 500 also fell 1.57%, while the Nasdaq closed lower by 1.89%. The Russell 2000 outperformed the other major indices but still fell 1.01%.
Sectors: All 11 sectors closed lower. Utilities led, but still slipped 0.25%. Energy lagged, dropping 2.77%.
Commodities: Crude Oil futures moved lower by 2.66% to $52.76 per barrel. Gold futures rose 0.71% to $1,582 per ounce.
Currencies: The US Dollar Index inched higher by 0.08%.
Interest Rates: The US 10-year Treasury yield fell to its lowest level since October at 1.599%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
The S&P 500 hasn't had back to back losses for 30 trading days in a row, tying the longest streak since 1955.
Given it was lower on Friday, a red day today would end this streak. pic.twitter.com/ffubMpWKwp
— Ryan Detrick, CMT (@RyanDetrick) January 27, 2020
Today’s Chart of the Day was shared on Twitter by Ryan Detrick (@RyanDetrick). It’s a chart of the S&P 500 going all the way back to 1928. The orange indicator marks the number of trading days without back-to-back losses. Ryan points out that the S&P 500 hasn’t posted back-to-back losses in 30 trading days…until today. He adds that this 30-day streak ties for the longest streak since 1955. Today also marked the end of a 74-day streak without a daily decline of 1% or more. While many are attributing today’s sell-off to the coronavirus, it’s important to keep in mind that the market has been relatively quiet over the past 3-4 months. In other words, it would’ve been unusual if the S&P 500 continued higher without experiencing some downside volatility.
Quote of the Day
“The most important thing is to try and inspire people so that they can be great at whatever they want to do.”
– Kobe Bryant
Top Links
The Sentiment Wave Builds as Confidence Rises in the Latest Equity Trend – Andrew Thrasher
Andrew Thrasher points to several indicators that were showing extreme readings in volatility and sentiment prior to today’s decline.
Gold, Treasuries, and Software – Momentum Monday
Howard Lindzon and Ivanhoff rip through dozens of charts to identify the hottest stocks and trends in the market right now.
Silver Poised to Trade Higher – Bloomberg
Steve Sosnick of Interactive Brokers joined host Abigail Doolittle to outline a bullish options trade on Silver futures.
Dr. Copper Looking Very Sick – Fibonacci.com
In this video, Tarek Saab shares his thoughts on the recent weakness in Copper futures.
Stocks Yielding More than Bonds Again – Bespoke
Bespoke discusses the fact that the S&P 500’s dividend yield is currently higher than the 10-year Treasury yield.
Top 10 Tweets
The $SPX gap lower to start the new trading day/week is the largest since April 2, 2009: pic.twitter.com/44EwqbiCtD
— John Kicklighter (@JohnKicklighter) January 27, 2020
The 7 day RSI on $SPX is looking go from "overbought" to "oversold" in just 2 trading sessions.
I should dig into the past and see when the last time this happened. pic.twitter.com/LyVpUBbaVG
— Michael Antonelli (@BullandBaird) January 27, 2020
S&P 500 basically erasing YTD/January gains at the low today, hitting the price gap between 12/31/19 & 01/02/2020, which had already been filled previously.$SPX $SPY $ES_F pic.twitter.com/gw7e5SBF04
— David Zarling (@AdaptivCharts) January 27, 2020
The Russell 2000 has held up better than the S&P 500 during today's slump. How come? Maybe a 12-year low set Friday has something to do with it. See my Chart of the Day. https://t.co/uXeMMeNeIL pic.twitter.com/F1XdHQIbrb
— Bloomberg Radio's Dave Wilson (@TheOneDave) January 27, 2020
$GLD new highs pic.twitter.com/mgkyV6oTKW
— KKern, TTB (@kkernttb) January 27, 2020
so, umm, copper…. pic.twitter.com/ekIqPqVB3d
— BostonCharts (@bostonchaahhts) January 27, 2020
#Copper is down a whopping 8.4% in the last 6 trading days. pic.twitter.com/GWcuZam2JY
— jeroen blokland (@jsblokland) January 27, 2020
Copper overshooting the prior swing low and floor from November $HG_F $JJC pic.twitter.com/QPMVngaLhh
— Aaron (@ATMcharts) January 27, 2020
Emerging-markets currencies are having their biggest one-day drop since August, according to MSCI index data @TheTerminal pic.twitter.com/0GOX3lipJs
— Lisa Abramowicz (@lisaabramowicz1) January 27, 2020
The bears ? take the day today. Strong selling in all S&P 500 sectors with some buying in Health Care.
Energy and Technology led the way down. Even Utilities dropped a skosh. Gold was up, Crude Oil close below $53 bbl, and #bitcoin jump +4.70% on the session.$SPY $GLD $USO pic.twitter.com/DhUP1V0Yiy
— Keith✨ (@JackDamn) January 27, 2020