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Today’s Summary
Wednesday, April 29th, 2020
Indices: US Stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 532 points or 2.21%. The S&P 500 and Nasdaq gained 2.66% and 3.57%, respectively. Small-Caps continued their recent outperformance, with the Russell 2000 jumping 4.83%.
Sectors: Energy led for the second day in a row, soaring 7.41%. Utilities lagged, falling 0.91%.
Commodities: The June Crude Oil futures surged 25.53% to $15.49 per barrel. Gold futures rose 0.42% to $1,730 per ounce.
Currencies: The US Dollar Index fell 0.34%.
Interest Rates: The US 10-year Treasury yield inched higher to 0.629%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Copper/Gold Ratio and 10 yr Treasury Yield
Copper/Gold ratio trying to break above Feb 2009 low. This could be an important turning point $HG_F $GC_F $TNX $SPX $FCX pic.twitter.com/RslY8iIIjC— Bhagyashree (@sunsofttech) April 29, 2020
Today’s Chart of the Day was shared on Twitter by Bhagyashree (@sunsofttech). It is a chart of the Copper/Gold ratio with the 10-year US Treasury yield in the lower pane. The Copper/Gold ratio is often used as a barometer for global economic growth. When the ratio is rising, it means Copper is outperforming Gold, which is a healthy sign for risk-appetite and global growth. It is also highly correlated to the US 10-year Treasury yield. Over the past few weeks, the Copper/Gold ratio has been consolidating below the 2009 lows, and it’s now attempting to break back above this key level. If Copper/Gold is able to break out and continue higher in the near-term, it would be a positive sign for risk-appetite, and the 10-year US Treasury yield would likely follow higher as well.
Quote of the Day
– Jeff Bezos (CEO of Amazon)
Top Links
Bank Stocks About To Send Monumental Message To The Broad Market! – Kimble Charting Solutions
Chris Kimble takes a look at a monthly chart of the Bank Index ($BKX) and emphasizes that this important index is currently facing a confluence of resistance.
Andrew Thrasher on What to Expect From The Fed – TD Ameritrade Network
In this clip, Andrew Thrasher offers his take on volatility, growth vs. value, and the possibility of negative interest rates.
Energy (XLE) Finally Above the 50-DMA – Bespoke
Bespoke points out that the Energy Sector ETF, $XLE closed above its 50-day moving average for the first time in over 70 trading days.
Podcast with Chris Ciovacco, Chief Investment Strategist, Ciovacco Capital Management – Technical Analysis Radio
In this podcast, JC Parets interview Chris Ciovacco of Ciovacco Capital Management. They discuss how he’s approaching the current market environment.
Commodity Commentary: Oil & Gold – Topdown Charts
Mike Zaccardi shares his thoughts on WTI Crude oil futures, Gold, Energy Stocks, and the US dollar.
Top 10 Tweets
$SPX logged its 7th gain of least 2% in April.
March had 8.
2019 had 2.
2018 had 5.
2017 had 0.
— Frank Cappelleri (@FrankCappelleri) April 29, 2020
The S&P 500 is currently up more than 31% from the lows.
There has never been a bear market rally this large, asking the question, is the bear market over? pic.twitter.com/GcvIFTSZbc
— Ryan Detrick, CMT (@RyanDetrick) April 29, 2020
S&P closed > 62% retracement level. 50dMA held for a week, but gave up. 200dMA is next. Bears had every opportunity to make a stand and couldn't, despite a GDP drop exceeding the entire 2008 financial crisis. Wouldn't be surprised to spend some time squeezed between the MAs. $SPX pic.twitter.com/23TI5kuSVq
— Jim Denholm, CMT (@denholm_jim) April 29, 2020
And despite the largest 5-day outperformance by US Small Caps over the last 20 years … they are still trailing dramatically YTD: pic.twitter.com/yrNmo5Iixk
— Christopher Cain, CMT (@PythonTrader) April 29, 2020
From this week's #JDIresearch report entitled "This too shall pass", this is a chart that will speak to many of you: pic.twitter.com/L93GEADlqv
— Juliette Declercq (@JulietteJDI) April 29, 2020
$SPY $TLT | Stock/Bond ratio is at a record low
Stocks & bonds compete for flows. This creates a circular relationship — as bonds go (yield down), stocks become more attractive (fatter risk premium) & vice-versa
I'm not LT bullish here but this helps put a floor under stocks pic.twitter.com/S9DPdAZQ2o
— Alex Barrow (@MacroOps) April 29, 2020
commodities are heading into their seasonally challenged time already challenged and weak $CRB #seasonality pic.twitter.com/CliMooLflt
— David Cox, CMT, CFA (@DavidCoxWG) April 29, 2020
One of the "mega movers" that hasn't gone anywhere for 12 trading sessions, after leading the market higher through the first half of April. What would it mean for the major indices of this stock moved higher and started outperforming again? pic.twitter.com/4ybhwnnRW3
— Ian McMillan, CMT (@the_chart_life) April 29, 2020
If $SPOT can get through this resistance there's a lot of upsidehttps://t.co/tu9ge3nVtM pic.twitter.com/Eul7pe4wHm
— Koyfin Tiger (@KoyfinCharts) April 29, 2020
Holy cow. pic.twitter.com/3L0GOSVxP1
— Jay Yarow (@jyarow) April 29, 2020