Monday, June 10th, 2019
Indices: US stocks were higher in today’s session with the Dow Jones Industrial Average closing up 79 points or 0.30%. The Nasdaq was the strongest of the major indices, up 1.05%.
Sectors: Technology led, gaining 1.02%. Utilities lagged, falling 0.68%.
Commodities: WTI Crude Oil futures fell 1.35% to settle at $53.26 per barrel. Gold futures were lower by 1.03% and are trading around $1,332 per ounce.
Currencies: The US Dollar Index rose 0.21%.
Interest Rates: The US 10-year Treasury yield moved higher to 2.143%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared on Twitter by Charlie Bilello (@charliebilello). It’s a ratio chart of the small-cap Russell 2000 Index relative to the large-cap S&P 500 ($IWM/$SPY). It’s currently at its lowest level since 2003. When this ratio is falling it means small-caps are underperforming large-caps and vice vera. The relative weakness of small-caps has been a big topic of discussion among technicians lately. This ratio is often used as a barometer of risk appetite because small-cap stocks tend to be perceived as riskier than their large-cap peers. The fact that investors prefer the safety of large-caps right now speaks directly to the current risk environment investors find themselves in.
Quote of The Day
“Amateurs know the rules, but experts know the exceptions.”
– Ralph Acampora (Technical Analyst)
After breaking out to new 52-week highs just a few weeks ago, the U.S. Dollar Index ($DXY) has pulled back to its 200-day moving average. In this report, we highlight what technicians are expecting for the Dollar going forward.
Bonds Peaking/Interest Rates Bottoming Here? – Kimble Charting Solutions
In this piece, Chris Kimble suggests that Treasury yields may be close to finding a near-term bottom. He points out that the U.S. 10-year note is down 35% from its 2018 high while sentiment is beginning to hit extreme levels.
A Bullish Signal That Has Not Shown Up in a Year – StockCharts.com
Greg Schnell of StockCharts.com gives his thoughts on the Dollar, Crude Oil, and Copper. In addition, he points out that the Net New Highs on the Dow Jones have reached their highest level in over a year.
Gauging the Bounce – Bespoke
The S&P 500 has seen a nice rebound lately with the index up over 5% in the past five sessions. This note from Bespoke takes a look at the best-performing stocks and sectors since the bounce began on June 3rd.
Copper Prices and the Global Economy – The Fat Pitch
In this blog post, Urban Carmel examines the relationship between Copper and the global economy. He argues that falling copper prices have not signaled a slump in the economy.
Top 10 Tweets
Escalator down and elevator up as S&P 500 reverses 19 days worth of declines in less than 5 days.
— Willie Delwiche (@WillieDelwiche) June 10, 2019
The market's low is in…..we are not overbought yet….expect retesting of the May highs and then some choppy activity, All-in-all, there is a good chance that the market will register all time new highs before this year ends.
— Ralph Acampora CMT (@Ralph_Acampora) June 10, 2019
— jeroen blokland (@jsblokland) June 10, 2019
The S&P500 completed a rare "Gravestone Doji" candlestick pattern today, which is considered by technicians to be a bearish reversal pattern. MACD momentum is still negative and below the 0 line. Stochastic momentum enters overbought $SPX pic.twitter.com/75FzgHxLmo
— Michael McKerr (@MikeMcKerr_TDA) June 10, 2019
— Clint S CFA, CMT (@clint_sorenson) June 10, 2019
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) June 10, 2019
— Teddy Vallee (@TeddyVallee) June 10, 2019
US Dollar breakdown last week meaningful in violating uptrend & still early to bottom even in the short run, Addtl weakness here likely this week before any trading low & $EURUSD $GBPUSD still likely have a bit more gains this week $DXY pic.twitter.com/NL2ywuN7wp
— Mark Newton (@MarkNewtonCMT) June 10, 2019