Friday, February 7th, 2020
Indices: US stocks fell in today’s session with the Dow Jones Industrial Average closing lower by 277 points or 0.94%. The S&P 500 and Nasdaq both fell 0.54%. The Russell 2000 was the weakest of the major indices, dropping 1.23%.
Sectors: Consumer Staples led, inching up 0.12%. Materials closed lower, falling 1.43%.
Commodities: Crude Oil futures fell 1.47% to $50.34 per barrel. Gold futures moved higher 0.23% to $1,574 per ounce.
Currencies: The US Dollar Index rose 0.21%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.582%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Lumber trying to break above '19 highs. pic.twitter.com/D2EVRe9amQ
— J4 (@J4_fibo) February 7, 2020
Today’s Chart of the Day was shared on Twitter by @J4_fibo. It’s a daily bar chart of Lumber futures over the past couple of years. Lumber closed at a new 52-week high today. As you can see from the chart, price is in the process of breaking through resistance from the 2019 highs. Commodities like Lumber and Copper are often thought of as being leading economic indicators, as they reflect a demand for global growth and development. There’s been a lot of focus on the weakness in Copper over the past month. However, it’s interesting to see that Lumber is breaking out and telling a much different story. Lumber and equities tend to be positively correlated to one another. Therefore, continued strength from Lumber would certainly not be a bearish development for stock market bulls.
Quote of the Day
“Employers are at their happiest on Mondays. Employees are at their happiest on Fridays.”
– Mokokoma Mokhonoana (Author)
Investors Un-Cautiously Optimistic – Dana Lyons
Dana Lyons warns that investors’ expectations are too high right now, and that sentiment isn’t providing the same tailwind to stocks that it was in the fall.
JC Parets: Are We Seeing More Stock Market Volatility In 2020? – IBD
In this podcast, JC Parets of All Star Charts gives his outlook on the market right now, as well as several ETFs including, European Financials ($EUFN), Medical Devices ($IHI), and Semiconductors ($SOXX).
Travel Stocks Under Pressure Again – StockCharts.com
In this short note, Respected technician John Murphy shares his thoughts on the recent weakness in Travel stocks.
Intermarket Review – David Cox
Portfolio Manager, David Cox, provides a quick analysis of Stocks, Volatility, Interest Rates, and Metals.
5-Chart Friday (2/7/20) – Compound
Charlie Bilello highlights some of the most noteworthy charts from the past week.
Top 10 Tweets
— Larry Tentarelli (@LMT978) February 7, 2020
— Tex (@theycallmetex) February 7, 2020
— Mark Ungewitter (@mark_ungewitter) February 7, 2020
"The U.S. can't keep outperforming" continues to be the pain trade.
S&P 500 up 3.6% YTD at record highs. Global equities ex-U.S. down in 2020.
Dollar Spot Index and Bloomberg Dollar Spot Index at highs of year. pic.twitter.com/C2iMlNnD6C
— Luke Kawa (@LJKawa) February 7, 2020
— David Keller, CMT (@DKellerCMT) February 7, 2020
Despite the $SPY logging new all-time highs this week, there is a slight negative divergence with #marketbreadth. We saw 57 fewer 52-week highs this week within the @Market_Scholars 1000 List than we did two weeks ago. pic.twitter.com/LtOZSa77pM
— 𝐁𝐫𝐚𝐧𝐝𝐨𝐧 𝐕𝐚𝐧 𝐙𝐞𝐞 (@BrandonVanZee) February 7, 2020
Aerospace & Defense ETF and stocks are strong and leading. $XAR held its rising 50-day in late January and hit a new high today. $LMT, $LHX and $UTX are also hitting new highs. pic.twitter.com/mThwA4Tt8T
— Arthur Hill, CMT (@ArthurHill) February 7, 2020
EURUSD is now down for 5 days in a row and is down for 5 of the last 6 weeks. Check further down for a longer-term chart…Key near-term support @ 1.09 pic.twitter.com/GGZ4sWPTn9
— Wolfe Daily Howl (@WolfeDailyHowl) February 7, 2020
Sitting at an important inflection point here. Will the long-term uptrend hold? Or will price break to new lows below ~$2.45? pic.twitter.com/ZJR1eWAvxD
— Adaptiv (@adaptiv) February 7, 2020
Been some discussion here of how isolated parabolic price moves seem to occur near the start of broad-market pullbacks. These charts from @LeutholdGroup identify some instances. @ZorTrades @hmeisler pic.twitter.com/7fNw7UpUaX
— Michael Santoli (@michaelsantoli) February 7, 2020