Monday, February 10th, 2020
Indices: US stocks kicked off the week on a positive note with the Dow Jones Industrial Average advancing 174 points or 0.60%. The S&P 500 and Nasdaq both closed at all-time highs, gaining 0.73% and 1.13%, respectively. The Russell 2000 rose 0.66%.
Sectors: Technology led, gaining 1.35%. Energy lagged, falling 0.50%.
Commodities: Crude Oil futures moved lower by 1.37% to $49.65 per barrel. Gold futures inched up 0.11% to $1,576 per ounce.
Currencies: The US Dollar Index rose 0.18%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.563%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— David Keller, CMT (@DKellerCMT) February 10, 2020
Today’s Chart of the Day was shared on Twitter by David Keller (@DKellerCMT). It’s a chart of the S&P 500 over the past five years. The two breadth indicators in the bottom pane show the percentage of stocks that are trading above their 200-day moving averages for both the NYSE Composite index (top) and the S&P 500 (bottom). The S&P 500 has rebounded to all-time highs after a minor pullback that began in late January. While all-time highs are not a bearish characteristic, David points out that several bearish divergences are forming that suggest that this rally could be running out of steam in the near term. The pink lines denote the breadth divergence he’s referring too. As you can see, the S&P 500 hit a new high, but fewer stocks within the index have recovered above their 200-day moving averages. Divergences like this can persist for a while without any implications; however, this is one bearish development that’s worth paying attention to in the days/weeks ahead.
Quote of the Day
“That men do not learn very much from the lessons of history is the most important of all the lessons of history.”
– Aldous Huxley (Writer)
Someone Give the Nasdaq a Mint – Bespoke
As we discussed in today’s Chart of the Day, several bearish divergences are forming in some of the major indices. In this note, Bespoke examines the breadth divergence between the Nasdaq and the cumulative advance/decline line.
Panning for Opportunity – Peter Brandt
Legendary trader/chartist, Peter Brandt breaks down the charts of Precious Metals and Gold Miners.
New All-Time Highs with Plenty of Long and Short Setup – Momentum Monday
In their weekly Momentum Monday video, Howard Lindzon, and Ivanhoff rip through dozens of charts to identify the hottest stocks and trends in the market.
These Charts Say 2018 was a Major Bottom – Ciovacco Capital Management
Chris Ciovacco explains why a breadth indicator known as the Bullish Percent Index is suggesting that the S&P 500 formed a cyclical bottom in 2018.
What Can Semiconductors Tell us About the Direction of U.S. Stocks? – Omaha Charts
Trent Smalley takes a look at a ratio chart of Semiconductor stocks vs. the S&P 500 and what it could be signaling for the broader market.
Top 10 Tweets
— Robert Lesnicki (@Robertlesnicki) February 10, 2020
— The Chartist (@thechartist) February 10, 2020
The S&P 500 averages a 0.00% return in February during an election year. pic.twitter.com/of23Qm00k2
— Ryan Detrick, CMT (@RyanDetrick) February 10, 2020
I agree with @DKellerCMT — the financial sector needs to be watched very closely here, especially given the current R/S downtrend. (Also need to watch breadth; current shortfall only 1145 net advances, but only 257 net advances as of 11:40 am.) pic.twitter.com/1rPrYBRiuP
— Walter Deemer (@WalterDeemer) February 10, 2020
*Breadth* of optimism is still lacking in U.S. stocks. A lot of bearishness built into small caps. The Russell 2000 ETF has the highest short interest level since 2015: pic.twitter.com/JpFus9R3gF
— Dani Burger (@daniburgz) February 10, 2020
— jeroen blokland (@jsblokland) February 10, 2020
Gold has been on a strong run over the last 3 years. The price has rallied from 1150 all the way to 1600 resistance.
— Tiho Brkan (@TihoBrkan) February 10, 2020
we ignoring this? pic.twitter.com/CDsKkvfVC7
— J.C. Parets (@allstarcharts) February 10, 2020
— Jonathan Krinsky,CMT (@jkrinskypga) February 10, 2020