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Today’s Summary
Tuesday, May 19th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average dropping 392 points or 1.59%. The S&P 500 and Nasdaq fell 1.05% and 0.54%, respectively. Small-Caps underperformed with the Russell 2000 ending down 1.95%.
Sectors: All 11 sectors closed lower. Communications led, slipping just 0.02%. Energy lagged, falling 2.80%.
Commodities: The July Crude Oil futures contract rose 0.98% to $31.96 per barrel. Gold futures moved higher by 0.65% to $1,746 per ounce.
Currencies: The US Dollar Index changed just 0.04%.
Interest Rates: The US 10-year Treasury yield fell to 0.687%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
S&P500 Whipsawing in a 145 point trading range for the past 30 trading days- between the 50% recovery 2784 and 62% recovery at 2930 of the COVID-Crash. Not an opinion-just a description. Looks like gutter-guards at the bowling alley. pic.twitter.com/1bi0rDhSjG
— Chris Robinson (@cer_hedge) May 19, 2020
Today’s Chart of the Day was shared on Twitter by Chris Robinson (@cer_hedge). It’s a daily candlestick chart of S&P 500 Futures over the past six months. As Chris points out, price has been stuck in a range between two key Fibonacci retracement levels for weeks now. The 61.8% Fibonacci retracement of the Feb-March crash has been acting as resistance (purple), while the 50% retracement has been acting as support (yellow). Despite an impressive 30% rally from the March low, the S&P 500 has made little progress (+1.65%) over the past month. Keep an eye on this range in the near term. A meaningful move above resistance (around 2930) would be a big win for the bulls, while a break of support (around 2784) would favor the bears.
Quote of the Day
“Bulls make money, bears make money, pigs get slaughtered.”
– Wall Street Adage
Top Links
Small Options Traders Have Never Done This Before – SentimenTrader
Jason Goepfert points out that small options traders (fewer than 10 contracts traded) are aggressively bullish on stocks right now.
The Silver/Gold Ratio Can No Longer Be Ignored – Talk Markets
Mike Swanson explains that the Silver/Gold ratio is finally starting to confirm a bull market in Precious Metals.
Mid-Week Stock Market Recap – The Trade Risk
In this video, Evan Medeiros reviews the recent price action in some of the major sectors and indices.
Here are the 13 Best Twitter Accounts to Follow for Technical Stock Market Analysis – Business Insider
Business Insider put together this list of some of the top technical analysts to follow on Twitter.
Market Indicators: Swear By Them Or Swear At Them?
In this video, respected analyst Larry Williams weighs the value of various fundamental and technical indicators.
Top 10 Tweets
Today's Market Mood: UNCERTAIN
– $SPX -1%, bearish reversal for $CCMP
– Credit ETFs up slightly
– Bonds Higher, Yen LowerThoughts On Tomorrow
– Back down in $SPX range?
– Bears slightly stronger on 200 DMA
– SKEW (on the rise) watch— Abigail Doolittle (@TheChartress) May 19, 2020
Bit of selling into the S&P close. pic.twitter.com/hNfx1znVTa
— Ed van der Walt (@EdVanDerWalt) May 19, 2020
#SPX fake out to the downside, fake out to the upside, suck in the bears, suck in the bulls, frustrate the hell out of everyone. Chop sideways and then really start to show some shape. All about patience, the least utilised tool in trading. pic.twitter.com/2eTgjul1s0
— Assad Tannous (@AsennaWealth) May 19, 2020
Long road ahead before monthly MACD turns positive. #TrendFollowing pic.twitter.com/IVgjUnCykJ
— Mark Ungewitter (@mark_ungewitter) May 19, 2020
$XLV vs $SPX Will that NegDiv confirm? pic.twitter.com/LiTTiSeH3L
— Dan Russo, CMT (@DanRusso_CMT) May 19, 2020
Yesterday also marked the best single-day gain for High Beta vs. Low Beta (better than +7%) since 2009, pulling the ratio to multi-month highs. Now eyeing Discretionary/Staples. pic.twitter.com/umjV4iaj8S
— Strategas (@StrategasRP) May 19, 2020
#Gold looks ready to make its move! pic.twitter.com/1lNRE42z1E
— Joe Perry,CMT (@jp3911) May 19, 2020
$gold : medium-term chart looks promising.
We got the breakout of the pennant/flag, but I am not sure if we move directly higher or if we need more consolidation into June.
Anyway, I expect a run towards 1900-2000 USD in the second half of 2020. $gld pic.twitter.com/cpAzOmGvK3
— Adrian (@highlevelTrader) May 19, 2020
Gold has taken center stage in this rally… but don't sleep on #silver.
Many silver stocks have been on a tear since their March lows. Several large caps are up 100% or more. And some juniors up 300% or more. pic.twitter.com/gGS6vfWB3K
— Katusa Research (@KatusaResearch) May 19, 2020
I would like to propose changing the FAANG stocks to make them the DAGFAN stocks. Over the last 5 years Domino's $DPZ has outperformed all of the FAANGs except Amazon and Netflix. ?? pic.twitter.com/LQeFZAHc3N
— Sean Brown (@Sean_YCharts) May 19, 2020