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Today’s Summary
Friday, March 6th, 2020
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average falling 257 points or 0.98%. The S&P 500 and Nasdaq dropped 1.71% and 1.87%, respectively. The Russell 2000 was the weakest of the major averages, closing lower by 2.00%. Despite the recent volatility, The Dow, S&P, and Nasdaq all closed positive on the week.
Sectors: All 11 sectors closed lower. Health Care led, but still closed lower by 0.53%. Energy lagged, dropping 5.62%.
Commodities: Crude Oil futures plunged 9.65% to $41.57 per barrel. Gold futures rose 0.37% to a multi-year closing high of $1,674 per ounce.
Currencies: The US Dollar Index dropped 0.75%.
Interest Rates: The US 10-year Treasury yield crashed to a record low of 0.71%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
10-Year Yield $TNX Crashes To All-Time Low (this is just a basic, unaltered log chart, FYI) $HighLowFriday pic.twitter.com/AXKXqlXIw3
— Dana Lyons (@JLyonsFundMgmt) March 6, 2020
Today’s Chart of the Day was shared on Twitter by Dana Lyons (@JLyonsFundMgmt). It’s a long-term chart of the 10-year US Treasury yield ETF, $TNX, going all the way back to 1962. Today was a historic day for US Treasury yields. Traders have been piling into Treasury Bonds, causing the yield on the 10-year note to crash to an all-time low of 0.71%. As you can see from the chart, yields have fallen at an unprecedented rate over the past couple of weeks. It’s unclear at the moment how this will impact the stock market and the economy, but one thing is for sure, this is truly historic price action. It would be prudent to pay attention to what’s going on in the Bond market right now.
Quote of the Day
“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do.”
– Mark Twain (Writer)
Top Links
A “Run of the Mill” Drawdown – Bespoke
Bespoke points out that the current drawdown in the S&P 500 has been in-line with its historical average so far.
The Modern Family’s Inside Weeks Get Picked Off – Market Gauge
Michele Schneider gives a quick update on a group of six ETFs that she calls the “Economic Modern Family” including $IWM, $KRE, $IYT, $XRT, $IBB, and $SMH.
Health Care Can Still Climb Back to All-Time Highs, Chart Suggests – CNBC
JC O’Hara of MKM Partners discusses the Health Care sector and explains why he thinks the sector is set to move higher.
All-In…And Then All-Out – SentimenTrader
Jason Goepfert shares some noteworthy insights about the stock market’s recent price action.
Stock Market Video Analysis for Week Ending 3/6/20 – AlphaTrends.net
Here’s Brian Shannon’s weekly video in which he recaps this week’s wild price action and highlights some levels of interest to keep an eye on next week.
Top 10 Tweets
Not freaking out until there's a structural breakdown below the 200-week. Zoom out & keep it simple. $SPX $SPY pic.twitter.com/7cXqPS7zQb
— Drew Wells, CIMA® (@DrewTheCharts) March 6, 2020
Out of nothing the #VIX index drops 13 points, #equities come of their lows and the S&P 500 closes the week 0.6% higher! ht @EddyElfenbein pic.twitter.com/57lvUBJRAg
— jeroen blokland (@jsblokland) March 6, 2020
The last 5 days… surprising isn’t it?
All that volatility to distract us from the fact stocks, bonds AND Gold are going up. pic.twitter.com/6NK2M2wSEt— Sam McCallum (@honeystocks1) March 6, 2020
Except 2008, 50 levels has acted as an important turning point for #VIX #VOLATILITY #INDEX pic.twitter.com/hh6Hubp2c9
— Aksel Kibar, CMT (@TechCharts) March 6, 2020
Repricing of risk in charts. 30-year yields plunging the most on record to the lowest on record in a single day, at 1.26%. pic.twitter.com/hCaebOlkIn
— Lisa Abramowicz (@lisaabramowicz1) March 6, 2020
At the highs of today's session, 30YR Bond Futures are up +4.00% and rising.
One of those HISTORIC days we'll tell our kids about:
There have only been THREE others like it in the ENTIRE HISTORY of Bond futures – Stocks rallied the next year +27%, +19%, +47%.
Think about it. pic.twitter.com/hhJYW33O1i
— Macro Charts (@MacroCharts) March 6, 2020
Remarkable framing of the 10-year yield collapse. Based on it's 40-year path, now merely in the middle of its trend channel, with the lower end well below zero.
From @FrankCappelleri, who says "the false move was the 2018 breakout."
Nothing preordained, of course, but striking. pic.twitter.com/ZNjLNceGXA
— Michael Santoli (@michaelsantoli) March 6, 2020
We pay close attention to the 5-year as it often gives an early tell on the direction of yields more broadly… will this potential failed breakdown spark the counter-trend move in rates we're all waiting for? $FVX pic.twitter.com/DOfemFUVqN
— Steven Strazza (@sstrazza) March 6, 2020
You can't make this up.
0.666%.
10-Year US Treasury Yield. pic.twitter.com/jgLpJcj0vM
— Scheplick (@scheplick) March 6, 2020
— Jim Bianco (@biancoresearch) March 6, 2020