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Today’s Summary
Tuesday, March 17th, 2020
Indices: US Stocks closed higher with the Dow Jones Industrial Average rebounding 1,049 points or 5.20%. The S&P 500 and Nasdaq closed higher by 6.00% and 6.23%, respectively. The Russell 2000 was the strongest of the major indices, gaining 6.68%.
Sectors: All 11 sectors closed higher. Utilities led, surging 12.79%. Energy lagged but still closed higher by 0.68%.
Commodities: Crude Oil futures continued to move lower by 6.52% to $26.82 per barrel. Gold futures rose 0.95% to $1,529 per ounce.
Currencies: The US Dollar Index soared 1.50%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.00%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Oil is getting close to its 2016 low. pic.twitter.com/3BASdyG93C
— Eddy Elfenbein (@EddyElfenbein) March 17, 2020
Today’s Chart of the Day was shared on Twitter by Eddy Elfenbein (@EddyElfenbein). It’s a chart of Crude Oil futures over the past five years. Much of the spotlight has been on Equities recently, as Stocks have sold-off at an unprecedented rate. However, it’s also worth noting that Crude Oil has experienced an epic decline as well. Just a few weeks ago, we shared a chart from the legendary trader, Peter Brandt. Peter pointed out that Crude Oil had broken key support around $50, and projected that price would fall below $40 per barrel. Over the next few weeks, Crude Oil dropped more than 45% to where it’s currently trading around $27 per barrel. As Eddy points out, price is now approaching the 2016 lows. At current levels, Crude would have to rally more than 100% just to get back to where it began this year.
Quote of the Day
“Luck is what happens when preparation meets opportunity.”
– Seneca (Roman Philosopher)
Top Links
David Keller on Choosing Resilient Sectors in Bear Markets – TD Ameritrade Network
In this clip, David Keller gives his technical take on where stocks could be headed in the near-term.
Under the Big Top – Dana Lyons
Dana Lyons demonstrates how to use Fibonacci analysis to identify potential long-term support levels.
This is When to Buy Microsoft, Apple, Amazon, and Alphabet Stock: Piper Sandler Technical Analyst – CNBC
Technical analyst, Craig Johnson discusses the long-term opportunities brewing in Mega-Cap Technology Stocks.
How a Portfolio Manager Handles Volatile Markets – Andrew Thrasher
Andrew Thrasher offers some insight into how a portfolio manager, like himself, approaches volatile market environments.
Midweek Stock Market Recap and Technical Analysis – The Trade Risk
In this video, Evan Medeiros highlights the notable price action we’ve seen so far this week in some of the major ETFs.
Top 10 Tweets
One of my favorite market stats is the fact that over the past 20 years, #StPatricksDay is one of the most green days of the year for stocks.
Can't make that one up. pic.twitter.com/8a8b54xjAg
— Ryan Detrick, CMT (@RyanDetrick) March 17, 2020
Some further perspective on the potential duration of major $SPX drawdowns the past 50 yrs. You can have severe intensity like the 1987 -36% move over 3 months. Then there was the 2000-2002 -50% drop played out over ~22 months pic.twitter.com/duUhiTSfmg
— John Kicklighter (@JohnKicklighter) March 17, 2020
7 day moving average of Put Call ratio in January showed extreme complacency and today it's the complete opposite. pic.twitter.com/81ZDKzFR9l
— Thomas Thornton (@TommyThornton) March 17, 2020
TLT is on pace for the best (+6.5%) and worst (-5.4%) days in its history this week, and it's only Tuesday! pic.twitter.com/BJFv5OOikM
— Bespoke (@bespokeinvest) March 17, 2020
The dollar is strengthening at a breakneck pace, to the strongest vs peers since 2017. This hints at the ongoing dollar funding pressures that are showing up in other parts of the market. pic.twitter.com/rWQnM7qAEY
— Lisa Abramowicz (@lisaabramowicz1) March 17, 2020
#Gold has been rough for traders seeking a safety play as markets plunge, but #Silver has been even worse. Since Feb. 24, $SI_F down over 30% while $GC_F down only 7% as relative strength plummets. Watching to see if Silver can reclaim 13 level before the close. pic.twitter.com/4eJYKTI8lF
— Rick Ducat (@RickDucat_TDAN) March 17, 2020
The chart of Silver is just crazy pic.twitter.com/k0ZaWDGya4
— Joe Weisenthal (@TheStalwart) March 17, 2020
Gold w/ stop @ the 200MA looks like a good Risk:Reward trade. Total potential loss only ~ -(3%).$GLD pic.twitter.com/r9ZwUdlNxY
— Adam D. Koos, CFP®, CMT (@AdamKoos) March 17, 2020
$TSLA… what a sell.. no longer a sell. Indeed TSLA is down to 2 levels of support (the 150d MA & the well-defined tops from which it broke out). We're buyers here. pic.twitter.com/pbnF1as2GJ
— Carter Braxton Worth (@CarterBWorth) March 17, 2020
As of last night's close there are just 15 stocks out of 505 in total for the S&P 500 that show positive gains in 2020 pic.twitter.com/DqaRG9wElR
— Ben Carlson (@awealthofcs) March 17, 2020