Friday, February 21st, 2020
Indices: US stocks ended the week on a sour note with the Dow Jones Industrial Average falling 228 points or 0.78%. The S&P 500 and Nasdaq fell 1.05% and 1.79%, respectively. The Russell 2000 moved lower by 1.03%.
Sectors: Real Estate led for the second day in a row, gaining 0.52%. Technology lagged for the second day in a row, falling 2.24%.
Commodities: Crude Oil futures moved lower by 0.50% to $53.46 per barrel. Gold futures continued to move higher, rising 1.45% to $1,646 per ounce.
Currencies: The US Dollar Index dropped 0.54%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.473%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
For the last 15 or so years, my number one intermediate-term bias tool for the market (and individual stocks) is where the price is in relation to and the direction of the 5 DMA
— Brian Shannon, CMT (@alphatrends) February 21, 2020
Today’s Chart of the Day was shared on Twitter by Brian Shannon (@alphatrends). It’s a 30-minute candlestick chart of the S&P 500 ETF, SPY, over the past seven weeks. Brian uses a 5-day moving average (5-DMA) to gauge the direction of the intermediate trend. Highlighted In green are periods where price is above an upward sloping 5-DMA, and making a series of higher highs and higher lows. In red are periods where price is below a downward sloping 5-DMA and creating a series of lower highs and lower lows. Brian explains that his intermediate-term bias on $SPY is bearish because price is currently below a downward sloping 5-DMA and has made both a lower high and lower low. As you can see from each highlighted period, Brian’s criteria for identifying the intermediate trend has served as a good way for active traders to decide whether to be bullish, bearish, or neutral.
Quote of the Day
“Be who you are and say what you feel, because those who mind don’t matter, and those who matter don’t mind.”
– Bernard Baruch (Financier)
Forever and a Day (in Stocks) – Macro Charts
Here’s an excellent read from Macro Charts that outlines some of the biggest risks facing the stock market right now.
Where Do We (Investors) Stand? – David Cox
Portfolio Manager, David Cox gives a brief but thorough analysis of the current market environment.
High Low Friday – Dana Lyons
Dana Lyons highlights some of the most important highs and lows across the markets right now.
Weekend Stock Market Recap and Sector Analysis – The Trade Risk
In this video, Evan Medeiros examines the recent price action of the major indices and sectors.
The Roaring 20’s – StockCharts.com
Greg Schnell breaks down the charts of some of the most beloved tech stocks, including Microsoft ($MSFT), Apple ($AAPL), and Tesla ($TSLA).
Top 10 Tweets
Last year, Friday was the S&P 500’s best day of the week. $SPX gained an average of 0.24% on Fridays in 2019.
So far in 2020, $SPX has dropped an average of 0.52% on Friday (not including today), the worst average performance out of the five days.
— Callie Cox (@callieabost) February 21, 2020
— Mark Arbeter, CMT (@MarkArbeter) February 21, 2020
it would take a roughly 8.8% loss from here JUST TO GET to the 200 day MAVG in $SPX
If we got there, its a 10% correction from the closing highs
(I'm just pointing out the numbers, not saying its going to happen) pic.twitter.com/vo2aLZDrmF
— Michael Antonelli (@BullandBaird) February 21, 2020
— David Zarling (@AdaptivCharts) February 21, 2020
Not only has an equally-weighted (USD, EUR, GBP, JPY) index of #gold charged to a fresh record high this past week, it has done so on the biggest weekly rally since January 2015 pic.twitter.com/RmtSwlRKtK
— John Kicklighter (@JohnKicklighter) February 21, 2020
— Tarek I. Saab (@FibLines) February 21, 2020
— Dan Russo, CMT (@DanRusso_CMT) February 21, 2020
— Gregory Krupinski (@G_krupins) February 21, 2020
— Bespoke (@bespokeinvest) February 21, 2020