Wednesday, July 17h, 2019
Indices: US stocks were lower in today’s session with the Dow Jones Industrial Average falling 116 points or 0.42%. The Russell 2000 was the weakest of the major indices, falling 0.72%.
Sectors: Utilities led, gaining 0.45%. Industrials lagged, falling 2.16%.
Commodities: Crude Oil futures dropped 1.46% to $56.74 per barrel. Gold futures rallied 0.83% to $1,423 per ounce.
Currencies: The US Dollar Index fell 0.17%.
Interest Rates: The US 10-year Treasury yield moved lower to 2.05%
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 a research note from Frank Cappelleri of Instinet (@FrankCappelleri). It’s a chart showing the S&P 500 in the top panel, and the number of new highs within the index on the bottom panel. Over the past month or two, the S&P 500 has rallied to record highs. At the same time, breadth, as measured by the # of stocks hitting new highs, has been deteriorating. Frank explains: “A lot of that has to do with Real Estate and Utility stocks pulling back a bit with Bonds. But with the SPX making new highs for a while now, the number of overall constituents doing the same could be higher.” Frank is still bullish on the broader market however this breadth divergence is a potentially bearish development that he’s watching closely.
Quote of The Day
“If I had eight hours to chop down a tree, I’d spend six sharpening my axe.”
– Abraham Lincoln (16th US President)
The Dow Jones Industrial Average hit a new all-time high recently while the Dow Jones Transportation Average is still 9% below its high. This piece explores Dow Theory and contrasts several opposing views on the topic.
Strategist Kolovos Says Buy Bitcoin Futures Closer to $8,500 – Bloomberg
In this clip, Chief Technical Strategist, John Kolovos of Macro Risk Advisors joins Bloomberg’s Abigail Doolittle to share his thoughts on Bitcoin.
Podcast with Rob Koyfman, Founder of Koyfin – Technical Analysis Radio
Koyfin is a free data visualization platform that offers a range of tools geared towards Technical and Fundamental Analysis. In this podcast, founder Rob Koyfman sits down with host, JC Parets to discuss some of the ways people are using Koyfin.
Semis are Back in Gear and this Stock is Poised to Extend Higher – StockCharts.com
In this article, Arthur Hill of StockCharts.com takes a look at Semiconductor stocks. He highlights one particularly attractive set up within the group, NXP Semiconductor ($NXPI).
A Long-Awaited Breakout – Real Vision
Tom Bruni of All Star Charts made an appearance on Real Vision today to outline a bullish trade idea on $AGCO.
Top 10 Tweets
BAYCREST: “ .. the SPX can likely pullback to ~2950 and still be considered in a consolidation. Below 2950, however, and the false-breakout scenario is once again in play.” @jkrinskypga pic.twitter.com/rUQN8lHWOZ
— Carl Quintanilla (@carlquintanilla) July 17, 2019
I like those charts that look like the rocket that have reached the peak of their arc and start to fade as the influence of gravity takes over. The $SPX 2 hour chart more or less fits that mold pic.twitter.com/IGgSOayfnl
— John Kicklighter (@JohnKicklighter) July 17, 2019
Keeping with the 2012/2016 comparison I've shared the last few months: note breadth peaked at nearly identical levels.
If we get a similar pullback into Q3, note the priors bottomed with breadth in the low 20s.
— Macro Charts (@MacroCharts) July 17, 2019
Small-caps turning down. The Russell 2000 ETF did not come close to its 2018 high in May and is now forming a peak below the May high. This lower high goes with a lower low in early June and could be the start of another leg lower. $RUT $IWM pic.twitter.com/6nv0mjRHwF
— Arthur Hill, CMT (@ArthurHill) July 17, 2019
— Andrew Thrasher, CMT (@AndrewThrasher) July 17, 2019
Nice move up and out of the consolidation in $GLD so far today. In a note to clients yesterday we reiterated it as a strategic long idea. Rounding out of an oversold position with bullish money flow. @chaikinanalytic pic.twitter.com/3WphXudqY6
— Dan Russo, CMT (@DanRusso_CMT) July 17, 2019
— traderstewie (@traderstewie) July 17, 2019
— Chris Verrone (@verrone_chris) July 17, 2019
Have the people who use the Baltic Dry Index as a "scary metric" pointed out this move yet? pic.twitter.com/pGyH4WHiah
— Michael Antonelli (@BullandBaird) July 17, 2019
The S&P is more important than the Fed in the 12m leading up to the election. “It’s the market, Stupid”. – Jeff deGraaf pic.twitter.com/b7YQwGPbEa
— Renaissance Macro (@RenMacLLC) July 17, 2019