Wednesday, April 8th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 780 points or 3.44%. The S&P 500 and Nasdaq gained 3.41% and 2.58%, respectively. The Russell 2000 was the strongest of the major indices, jumping 4.61%.
Sectors: All 11 sectors closed higher by at least 1%. Real Estate led, gaining 7.51%. Consumer Staples lagged but still closed higher by 1.48%.
Commodities: Crude Oil futures dropped 6.71% to $24.46 per barrel. Gold futures were flat and continue to trade around $1,684 per ounce.
Currencies: The US Dollar Index rose 0.20%.
Interest Rates: The US 10-year Treasury yield moved higher to 0.771%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Best rally for Energy by a mile. pic.twitter.com/f97Ax7Qgve
— Strategas (@StrategasRP) April 8, 2020
Today’s Chart of the Day was shared on Twitter Strategas Research (@StrategasRP). It’s a chart of the S&P 500 Energy Sector over the past three decades, along with a 10-day rate of change indicator below it. Energy has been a clear underperformer for years. However, over the past two weeks, the sector has staged an impressive rally. The Energy Sector ETF, $XLE, is up nearly 20% over the past 10-days, making it the best performing sector during that period. For reference, the S&P 500 is up about 11% over that same period. As Strategas points out, this has been the largest 10-day rally for the sector in the past 30-years. Energy is still in a nasty downtrend on both an absolute and relative basis, but the recent strength has many wondering if the worst could finally be over for this beaten-down sector.
Quote of the Day
“Doubt is an uncomfortable condition, but certainty is a ridiculous one.”
– Voltaire (Philosopher)
2nd Quarter 2020 — Stock Market Update – Libertas Wealth Management
In this video, Adam Koos of Libertas Wealth Management gives an update on the markets and highlights some noteworthy charts.
A Market is Only as Good as its Lowest Common Denominator – StockCharts.com
Michele Schneider argues that the Regional Banking ETF, $KRE is one of the most important areas of the market to watch right now.
The 10-Month Moving Average Strategy – All Star Charts
JC Parets outlines a simple long-term investment strategy using the 10-month moving average.
Interview with Ari Wald – Yahoo Finance
In this clip, Ari Wald of Oppenheimer discusses some of the strongest and weakest areas of the market.
“Just a Bear Market Rally” – SentimenTrader
Jason Goepfert shares some great insights surrounding the recent rebound in stocks.
Top 10 Tweets
The bears are in such a rush as if every sell off will be just like the March one. We will never see one like that again in our lifetimes.
A massive wall of worry is in place. I do think indexes go lower in this bear market but not like March. $spy
— Panic First (@howardlindzon) April 8, 2020
— The Chartist (@thechartist) April 8, 2020
Get ready to dump your load pic.twitter.com/FH2T8Fq083
— Peter Brandt (@PeterLBrandt) April 8, 2020
The Nasdaq Composite is positive for the last six months. pic.twitter.com/zQIERIMX2k
— Eddy Elfenbein (@EddyElfenbein) April 8, 2020
Small caps working on the great wall of resistance pic.twitter.com/5nnyUweun2
— Aaron (@ATMcharts) April 8, 2020
My favorite chart from our Q2 outlook: buying in bear markets.
On average, the S&P 500 has risen 10% in the 12 months after the first day of a bear market. pic.twitter.com/iM6ifFRWZr
— Callie Cox (@callieabost) April 8, 2020
GS High-Beta Short Index +25% over the last 3 days. pic.twitter.com/ppSettKZUr
— Jonathan Krinsky,CMT (@jkrinskypga) April 8, 2020
— Shane C. Murphy (@murphycharts) April 8, 2020
— jeroen blokland (@jsblokland) April 8, 2020
We went from 1929 to 1999 in a week.
— Morgan Housel (@morganhousel) April 8, 2020