Friday, May 22nd, 2020
Indices: US Stocks were mostly higher in today’s session. The Dow Jones Industrial Average was more or less flat, changing just 9 points or 0.04%. The S&P 500 and Nasdaq rose 0.24% and 0.43%, respectively. Small-Caps outperformed, gaining 0.59%.
Sectors: Real Estate led, rising 2.19%. Energy lagged for the second day in a row, falling 0.62%.
Commodities: The July Crude Oil futures contract moved lower by 1.98% to $33.25 per barrel. Gold futures gained 0.79% to $1,736 per ounce.
Currencies: The US Dollar Index moved higher by 0.38%.
Interest Rates: The US 10-year Treasury yield slipped to 0.664%.
**Reminder: The US Stock Market and Bond Market will be closed on Monday in observance of Memorial Day**
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Well, that was a precarious position for $SPX to end the week in: teetering between the 100/200-day moving average combo immediately above and previous range resistance as immediate support below pic.twitter.com/ICxSOhYHAa
— John Kicklighter (@JohnKicklighter) May 22, 2020
Today’s Chart of the Day was shared on Twitter by John Kicklighter (@JohnKicklighter). It’s a daily candlestick chart of the S&P 500 index over the past eight months. As John points out, the index is heading into the long weekend at a tricky spot. Price is right below a confluence of resistance from the 100-day and 200-day moving averages. As you probably know, the 200-day moving average is the most widely watched technical indicator out there. Price is currently less than 2% away from testing it, so you can be sure all eyes will be on it next week. It would be a big win for the bulls if price can push through this congestion area around 3,000-3,100.
Quote of the Day
“Take calculated risks. That is quite different from being rash.”
– George S. Patton (US Army General)
What Happened in the Market This Week? – NYSE
In this video, Market Maker, Jay Woods discusses this week’s price action in stocks.
Options Traders Have Been Very Confident -SentimenTrader
Jason Goepfert weighs-in on the low reading in the Put/Call Ratio.
Stock Market Analysis for Week Ending 5/22/20 – 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.
Doc Copper Counter-Trend Rally Could Peak Here, Says Joe Friday – Kimble Charting Solutions
Chris Kimble breaks down a long-term chart of Copper.
Where Do We (Investors) Stand – David Cox
In this quick video, Portfolio Manager, David Cox takes a look at some noteworthy technical developments going on across the markets.
Top 10 Tweets
Weekly Market Mood: NUANCED RISK-ON
– $SPX +3.2% vs $RTY +7.8%
– Small cap was 'defense' this wk on China
– Plus China down for 2nd wk … vol 'tell'?
– $HYG up an absurd 3.3%
– FOMO also in NZDJPY +3.3%
– Bonds about flat, $ down
– LONG WEEKEND!
— Abigail Doolittle (@TheChartress) May 22, 2020
In front of the 3-day weekend, today’s volume = 8.9 billion shares… the lowest since 2/21… right before things tuned ugly.
— Frank Cappelleri (@FrankCappelleri) May 22, 2020
— ukarlewitz (@ukarlewitz) May 22, 2020
Stocks typically take a summer break, just like many of us do.
Since 1990, the S&P 500’s average return between Memorial Day and Labor Day has been 0.4%, compared to ~4% returns in the periods before Memorial Day and after Labor Day. pic.twitter.com/LHwnmrBq6l
— Callie Cox (@callieabost) May 22, 2020
— David Zarling, CMT (@AdaptivCharts) May 22, 2020
Looking beyond the S&P 500 and casting an eye on the Value Line Geometric Index, I'm increasingly of the view that we have been moving through a bear market that stretches back to mid-2018. pic.twitter.com/ND2gq6SGyC
— Willie Delwiche (@WillieDelwiche) May 22, 2020
— Hilary (@queenofchartz) May 22, 2020
A lot of excitement around cannabis stocks as they're starting to catch a bid & pop up on some of my scans. Could be just another dead cat bounce but worth a look this weekend. #cannabis $MJ $CGC $TLRY pic.twitter.com/LlBfMIyUrT
— Greg Rieben (@gregrieben) May 22, 2020
One more for the history books:
Data from Robinhood shows nearly a TRIPLING in activity this year – the # of positions in $SPX stocks rose from 4 million (at the start of 2020) to 12 million today.
Did ALL these new investors successfully "buy the bottom"? What if it wasn't? pic.twitter.com/plpMduoyOA
— Macro Charts (@MacroCharts) May 22, 2020
As of 5/21/20 the $SPX is +31.8% from the 3/23/20 bottom. On 5/21/09 the $SPX was +31.4% from the 3/9/09 bottom. Few people believed the bear market had ended then either. It doesn’t feel right now, and it didn’t feel right then… because it never does.https://t.co/wyfH3UcCAS pic.twitter.com/bgpkt6JjFY
— Randy Frederick (@RandyAFrederick) May 22, 2020