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Today’s Summary
Monday, March 23rd, 2020
Indices: US Stocks closed lower to start the week with the Dow Jones Industrial Average dropping 582 points or 3.04%. The Nasdaq outperformed the other major indices slipping just 0.27%. The S&P 500 and the Russell 2000 fell 2.93% and 1.13%, respectively.
Sectors: 10 out of the 11 sectors closed lower. Communications was the only sector to close higher, inching up 0.25%. Energy, dropping 8.86%.
Commodities: Crude Oil futures rose 0.59% to $23.78 per barrel. Gold futures surged 3.95% to $1,560 per ounce.
Currencies: The US Dollar Index moved higher by 0.51%.
Interest Rates: The US 10-year Treasury yield moved lower to 0.763%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
170 is the line in the sand for the Nasdaq right now… this level was tested just about every day last week $QQQ pic.twitter.com/VgyenRpNoR
— Steven Strazza (@sstrazza) March 23, 2020
Today’s Chart of the Day was shared on Twitter by Steve Strazza (@sstrazza). It’s a daily candlestick chart of the Nasdaq 100 ETF, $QQQ. Steve explains that buyers and sellers have made it clear; $170 is a key level to watch. It has acted as either support or resistance numerous times over the past few years. In addition, this level has been tested nearly every day over the past six sessions. Identifying levels of polarity like this simplifies investment decisions during uncertain market environments by allowing you to model straightforward if-then scenarios. For example, if price continues to close above $170, then the risk is to the upside. On the other hand, if price falls below $170, then the risk is to the downside.
Quote of the Day
“When I was a boy and I would see scary things in the news, my mother would say to me, ‘Look for the helpers. You will always find people who are helping.’”
– Mr. Rodgers (TV Personality)
Top Links
Fastest 30% Sell-Off in History – The Reformed Broker
Josh Brown shares some insightful charts that illustrate how much faster this sell-off has been relative to prior bear markets.
Lower Lows and Lower Highs – All Star Charts
JC Parets breaks down the charts of some of the major indices and offers his technical take on the current market environment.
Gold (GLD) Outshining Silver (SLV) – Bespoke
Here’s a short note from Bespoke that takes a look at the recent spike in the Gold/Silver ratio ($GLD/$SLV).
Panic with Friends with Chris Kimble of Kimble Charting Solutions – Lindzanity Podcast
In this podcast, Howard Lindzon interviews Chris Kimble, of Kimble Charting Solutions. They discuss the art of technical analysis and share their thoughts on the current market.
Buying During a Crisis – Of Dollars and Data
Data scientist, Nick Maggiulli lays out some of the long-term benefits of continuing to buy during market panics.
Top 10 Tweets
The S&P 500 has dropped 33.9% peak-to-trough. If today is the bottom, it’d be the fifth-worst bear market since 1946.
— Callie Cox (@callieabost) March 23, 2020
Dow Jones Industrial (dividends excluded) has made no progress for 6 years.
German DAX is at the same point it was 22 years ago. Chinese markets hare down a lot over the last 13 years.
In Japan, the market is well below its all-time high set some 30 years ago today. pic.twitter.com/gQOEhecqld
— Tiho Brkan (@TihoBrkan) March 23, 2020
$SPX fell to the top of what could be very strong chart support between 2,135 and 2,220. Thsi support from the top of the base in 2015/2016. We shall see. pic.twitter.com/IzIMe1rTQ1
— Mark Arbeter, CMT (@MarkArbeter) March 23, 2020
Since the February 19, high. pic.twitter.com/VjoiN1Z4j7
— Jim Bianco (@biancoresearch) March 23, 2020
Only 3% of $SPX names remain above their 200-day moving average. In a bearish phase, this number can remain low for extended stretches. See 2008-2009. pic.twitter.com/IXBbUPVl9o
— David Keller, CMT (@DKellerCMT) March 23, 2020
Remarkable outperformance from the Semis. pic.twitter.com/8W58J9nv2I
— Strategas (@StrategasRP) March 23, 2020
200-Day Z-score on the $HYG / $IEF ratio in case you needed a really good look at how jammed credit is! That's a 5-handle on the z-score! pic.twitter.com/oRlR8m55FN
— Dan Russo, CMT (@DanRusso_CMT) March 23, 2020
Gold Rel. to S&P — Gold reacting well to Fed's newest version of QE Infinity pic.twitter.com/oE1L2gJAAx
— Wolfe Daily Howl (@WolfeDailyHowl) March 23, 2020
Gold/SPX ratio vaulting 200-week average, comparable to 2001, 1987, 1977. Updated through 03/20/20. pic.twitter.com/NI3K1Rk04e
— Mark Ungewitter (@mark_ungewitter) March 23, 2020
$SPY last time there was a short selling ban…. what happened? pic.twitter.com/MfVQnqZ4Ge
— Sam McCallum (@honeystocks1) March 23, 2020