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Today’s Summary
Thursday, May 7th, 2020
Indices: US Stocks closed higher in today’s session with The Dow Jones Industrial Average advancing 211 points or 0.89%. The S&P 500 and Nasdaq rose 1.15% and 1.41%, respectively. Small-Caps outperformed with the Russell 2000 gaining 1.58%.
Sectors: Energy led, gaining 2.60%. Consumer Staples lagged, slipping 0.28%.
Commodities: The June Crude Oil futures contract fell 2.50% to $23.39 per barrel. Gold futures moved higher by 2.29% to $1,727 per ounce.
Currencies: The US Dollar Index slipped 0.24%.
Interest Rates: The US 10-year Treasury yield fell to 0.643%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared in an article by Frank Chaparro (@fintechfrank). Earlier today, a report from Bloomberg revealed that legendary investor Paul Tudor Jones II is long Bitcoin. Paul Tudor Jones is highly respected in the technical community for amassing a multi-billion-dollar fortune by observing price action and riding trends. When he speaks, people listen! In regards to his Bitcoin position, Jones commented: “Bitcoin reminds me of Gold when I first got in the business in 1976…Gold had just been productized as a futures instrument (like Bitcoin recently) and had enjoyed a heck of a bull market, almost tripling in price. It then corrected almost 50% in nearly two years similar to Bitcoin’s 28-month 80% correction! You can see the similarities in the two charts.” As we know, history never repeats itself exactly, so it’s always good to approach these analog charts with a healthy degree of skepticism. However, his comments on this relatively new asset class are certainly worth considering. For more on this, check out the full article.
Quote of the Day
“Wise men speak because they have something to say; fools because they have to say something.”
– Plato (Philosopher)
Top Links
Jonesing For a Hedge – Bespoke
The team at Bespoke examines the technical outlook for Bitcoin, and they weigh-in on the bullish comments made by Paul Tudor Jones that we discussed above, in our Chart of the Day.
Gold Mining Stocks About To Skyrocket? 10-Year Breakout In Play? – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of the Gold & Silver Miners Index, $XAU.
Leadership Narrows as Small Caps Struggle – The Final Bar
In this episode of the Final Bar, Host David Keller sits down with Jonathan Krinsky of Bay Crest Partners to get his technical perspective on the current market environment.
Gold Miners Take Off While Financials Sink – SentimenTrader
Jason Goepfert takes a look at how the S&P 500 has historically performed following periods where Gold Miners outperformed while Financials underperformed.
When in Doubt, Zoom Out – Gold & Silver – All Star Charts
In this quick read, JC Parets analyzes the trends going on within the different areas of the Precious Metals space.
Top 10 Tweets
Will the next 10% move in the S&P 500 be higher or lower from here?
— The Chart Report (@TheChartReport) May 6, 2020
Value Lie Geometric starting to show more weakness than what's being experienced in $SPX $VLG pic.twitter.com/7J8MKnOBfq
— Andrew Thrasher, CMT (@AndrewThrasher) May 7, 2020
The Nasdaq 100 is making new relative highs versus the S&P 500. pic.twitter.com/5DOLhIiXZ7
— Adaptiv (@adaptiv) May 7, 2020
S&P500 Sectors relative strength ratios in one chart $spx #spx $xlb $xlc $xle $xlf $xli $xlk $xlp $xlre $xlu $xlv $xly Tech still with strong outperformace and Industrials/Financials are clearly underperforming pic.twitter.com/zyCEBADu8M
— Grant Hawkridge (@granthawkridge) May 7, 2020
The lowest reading on the put call ratio since the rally began. Is this the top? pic.twitter.com/hmKEuAAS8y
— Jason (@JasonPerz138) May 7, 2020
A new record low for 2-year Treasury yields. via @vivienlouchen @theterminal pic.twitter.com/FSDOUKuko3
— Lisa Abramowicz (@lisaabramowicz1) May 7, 2020
Another fresh closing low for the 5-Year US Yield $FVX even as stocks continue to grind higher…
Always heard the Bond Market is smarter than the Equity Market… I guess we'll find out soon! $IEF $SPY pic.twitter.com/GLKVUnyTwF
— Steven Strazza (@sstrazza) May 7, 2020
$SLV Moving along with #gold and #bitcoin today… pic.twitter.com/FwGefpGNfh
— Greg Rieben (@gregrieben) May 7, 2020
Silver gunning for the first close above the 50D since the Feb liquidation $SI_F $SLV pic.twitter.com/5BSMjzZYLB
— Aaron (@ATMcharts) May 7, 2020
Bitcoin future price vs. Aggregate Open Interest on CME $XBT $BTC pic.twitter.com/1riKtb8qye
— J4 (@J4_fibo) May 7, 2020