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Today’s Summary
Friday, May 8th, 2020
Indices: US Stocks ended the week on a positive note with the Dow Jones Industrial Average advancing 455 points or 1.91%. The S&P 500 and Nasdaq rose 1.69% and 1.58%, respectively. Small-Caps outperformed with the Russell 2000 jumping 3.64%.
Sectors: All 11 sectors closed higher. Energy led significantly, gaining 4.56%. Health Care lagged but still closed higher, rising 0.52%.
Commodities: The June Crude Oil futures contract moved higher by 5.05% to $24.74 per barrel. Gold futures fell 0.69% to $1,714 per ounce.
Currencies: The US Dollar Index dropped 0.79%.
Interest Rates: The US 10-year Treasury moved higher to 0.686%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Revisiting this chart comparing SPX vs FAAMG since Jan 26, 2018 shows continued divergence of FAAMG stocks vs everything else in the S&P 500. pic.twitter.com/g3YkVVLZMd
— Clarence Carr, MD, MBA (@ClarenceCarr) May 8, 2020
Today’s Chart of the Day was shared on Twitter by Clarence Carr (@ClarenceCarr). The dismal economic backdrop has many scratching their heads, wondering – Why aren’t stocks down more? The answer to that requires a deeper look within the S&P 500. After all, it’s a market of stocks, not just a stock market, right? There’s a clear bifurcation going on right now. The five largest stocks in the S&P 500, FAAMG (Facebook, Apple, Amazon, Microsoft, and Google) are screaming to new highs, while the rest of the components in the index struggle. FAAMG (in blue) is up 49% since January 2018, while the rest of the S&P 500 (in orange) is down 46% over the same period. This “tale of two markets” has left the S&P 500, as a whole, virtually unchanged over the past two and a half years.
Quote of the Day
– Marcus Aurelius (Roman Emperor)
Top Links
Group Breadth Improving From a Record Low Base – Bespoke
Bespoke takes a look at the swift improvement in industry group breadth.
Silver Could Send First Bullish Message in 9-Years – Kimble Charting Solutions
Chris Kimble points to a potential breakout that’s forming on a long-term chart of the Silver/Gold ratio.
Stock Market Video Analysis for Week Ending 5/8/20 – AlphaTrends.net
Here’s Brian Shannon’s weekly video in which he lays out some levels of interest to keep an eye on next week.
Becoming a CMT – Futures Radio Show
In this podcast, Host Anothy Crudele interviews Trent Smalley (@omahacharts). Trent discusses his research process and his path to becoming a Chartered Market Technician.
Where Do We (Investors) Stand? – David Cox
In this quick video, Portfolio Manager, David Cox highlights some of the most noteworthy technical developments across the markets right now.
Top 10 Tweets
S&P 500 rises 1.69% on the day of the worst jobs report in history https://t.co/sws3z3sRWa pic.twitter.com/XpBmDyuqU8
— Joe Weisenthal (@TheStalwart) May 8, 2020
$NQ, weekly
Two more weeks like this one and Nasdaq is back at ATHs.
What happens after that? A double top followed by a proper bear market or a brave new bull market?
Retail investors in their majority are extremely bearish now based on AAII survey. pic.twitter.com/0VXHm8AC0K
— Yuriy Matso (@yuriymatso) May 8, 2020
$URTH ? Back above the 200-week & 50-day. ~$88 & 100-day are clustering together for the next level to smash to have some confidence in the rally #TradingView pic.twitter.com/DVXszbJ3yx
— Drew Wells, CMT, CIMA® (@DrewTheCharts) May 8, 2020
Chart Of The Day: ISE Equity Call/Put Ratio hits highest level in 8 years (…red flag or 1-day outlier?) $SPY $SPX pic.twitter.com/qqr5ok0pmz
— Dana Lyons (@JLyonsFundMgmt) May 8, 2020
$VIX – took 7 months to fall below 30% from the peak in 08-09.
7 weeks in 2020 $SPY @TheChartReport @abnormalreturns @Stocktwits
via @tradingview pic.twitter.com/A7ecyFSym8— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 8, 2020
US 2-year Treasury #yield down to 0.12%. Will it go negative? pic.twitter.com/yAFoLA8DaY
— jeroen blokland (@jsblokland) May 8, 2020
UK 2 Yr Yield (pink) Already Neg. What's the Chance the US 2 Yr (white) Avoids this Fate? pic.twitter.com/58AJ6qFld4
— Wolfe Daily Howl (@WolfeDailyHowl) May 7, 2020
Dollar.
Trader positioning is *extremely* low relative to its 2013-20 Bull Market range – where some huge rallies began.
The Dollar keeps grinding higher, similar to late 90s "U.S. vs RoW".
More Dollar strength from here might be a big problem for risk assets. pic.twitter.com/tGgtANHvzN
— Macro Charts (@MacroCharts) May 8, 2020
Bitcoin > 10,000 today, a psychologically-significant level, after having lifted from a downtrend channel. We are watching Fibonacci resistance at 10,055 around next week's halving – a breakout would target the 2019 high (13,852!) pic.twitter.com/nOG8Pe08Rc
— Katie Stockton, CMT (@StocktonKatie) May 8, 2020
Conversely, gold today reminds me of bitcoin in 2016. ? pic.twitter.com/eoMjDmHqnr
— Mark Ungewitter (@mark_ungewitter) May 7, 2020