Tuesday, February 11th, 2020
Indices: US stocks were little changed in today’s session with the Dow Jones Industrial Average closing completely flat. The S&P 500 and Nasdaq inched up 0.17% and 0.11%, respectively. The Russell 2000 was the strongest of the major indices, gaining 0.59%.
Sectors: Real Estate led, gaining 1.21%. Consumer Staples lagged, falling 0.37%.
Commodities: Crude Oil futures rose 0.60% $49.95 per barrel. Gold futures slipped 0.27% to $1,571 per ounce.
Currencies: The US Dollar Index moved slightly lower by 0.11%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.604%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Andrew Thrasher, CMT (@AndrewThrasher) February 11, 2020
Today’s Chart of the Day was shared on Twitter by Andrew Thrasher (@AndrewThrasher). On top is the Volatility Index ($VIX), and on the bottom is the Volatility of the Volatility Index ($VVIX). As we pointed out in yesterday’s Chart of the Day, there are a number of bearish divergences forming right now. This is another important one to add to the list. As you can see, $VVIX failed to make a new low along with $VIX. As Andrew notes, this divergence between the $VIX and $VVIX is bullish for volatility in the short-term, which means stocks could be in for some turbulence in the days/weeks ahead. Volatility can be a complex topic, but Andrew understands it better than just about anyone out there. In fact, he won the 2017 Charles H. Dow Award for a paper titled “Forecasting a Volatility Tsunami.” Therefore, when he comments on volatility like this, it’s prudent to pay attention.
Quote of the Day
“Bull markets are more fun than bear markets.”
– Bob Farrell (Technical Analyst)
This Wall Street Legend’s 10 Rules for Investing are Very Applicable to Today’s Bull Market – CNBC
Here’s a great article from CNBC that outlines legendary technician, Bob Farrell’s 10 rules for investing and how they apply to today’s market.
Yield Curve Back in the News – LPL Financial Research
Concerns over the inverted yield curve are back. However, in this note, the team at LPL Financial Research argues that the inversion needs to become more pronounced before it becomes a real issue.
Chinese Stocks Diverge Based on Market Cap – Bespoke
In this note, Bespoke examines the recent price action in China’s Shanghai Composite index.
“Behind The Charts” with Tony Dwyer and David Keller, CMT – StockCharts.com
Here’s a great conversation between Tony Dwyer and David Keller. Tony shares his story of how he started in this industry and gives some insight into his process.
John Roque: The Trend Tells Me that Gold is Going to Make a New All Time High – Palisade Radio
In this podcast, respected technician, John Roque explains why he continues to be bullish on Gold. He also discusses how a lot of technical indicators have become less effective over the years.
Top 10 Tweets
Maybe this will be the third leg up that gets the fat lady to sing. Sentiment readings have continued to show far too many bears – surprising, considering the all time new highs in stocks day after day and overall market structure. pic.twitter.com/yphn6j8Tdv
— Linda Raschke (@LindaRaschke) February 11, 2020
The Nasdaq is up 50% in a little over a year. New high today. pic.twitter.com/2nd2KUmx2R
— Eddy Elfenbein (@EddyElfenbein) February 11, 2020
Nasdaq Futures – $NDX now officially the widest spread vs. 200 DMA (18.5%) since the '09 lows.
Since the '00 peak, only coming out of major bear markets ('03 and '09) have seen wider spreads pic.twitter.com/mlzZ82rjIG
— Jonathan Krinsky,CMT (@jkrinskypga) February 11, 2020
— Optuma (@Optuma) February 11, 2020
— Drew Wells, CIMA® (@DrewTheCharts) February 11, 2020
The 10-year to 3-month Treasury yield curve is slipping in and out of inversion again today. This 'recession warning' signal that economists like to reference continues to mark dramatic contrast to the markets (here the Dow Index in blue) pic.twitter.com/lszZbngHhp
— John Kicklighter (@JohnKicklighter) February 11, 2020
IPO ETF at record highs pic.twitter.com/KR2kmfz3vV
— Luke Kawa (@LJKawa) February 11, 2020
Lumber $LB1 is breaking out of a 16+month trading range. Another divergence between the US vs global/China growth concerns reflected in rates, oil and copper. pic.twitter.com/7ZjgMqQLf8
— Robert Sluymer (@rsluymer) February 11, 2020
— J4 (@J4_fibo) February 11, 2020
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) February 11, 2020