Tuesday, August 6th, 2019
Indices: US stocks rebounded today with the Dow Jones Industrial Average closing higher by 312 points or 1.21%. The Nasdaq was the strongest of the major averages, gaining 1.39%.
Sectors: Technology led, gaining 1.66%. Energy lagged, falling 0.12%.
Commodities: Crude Oil futures slipped 1.89% to settle at $53.61 per barrel. Gold futures hit another multi-year high, gaining 0.51% to $1,484 per ounce.
Currencies: The US Dollar Index inched higher by 0.07%.
Interest Rates: The US 10-year Treasury yield rose to 1.736%.
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 on Twitter by Ryan Detrick of LPL Financial Research. The chart shows the number of 5% pullbacks in the S&P 500 that have occurred each year going back to 1990. He points out that on average, the index experiences 3.3 separate 5% pullbacks per year. So far in 2019, we’ve now had two. Ryan and the team at LPL began calling for a late-summer pullback after the S&P 500 reached their year-end target of 3,000 at the end of July. Their reasoning was based on August seasonality, and the fact that we had only had one 5% pullback in 2019 up to that point. Sure enough, the Dow sold-off at the beginning of August and we got the 5% pullback that Ryan and the team at LPL anticipated.
Quote of The Day
Thinking in Percentages vs. Points – The Chart Report
In this report, we put yesterday’s sell-off into perspective. It was certainly a violent day, however, it wasn’t as bad as some news outlets were suggesting.
‘Not Yet Over’ – Stocks Have Further to Fall Before the Selling Subsides, Say Chart Analysts – CNBC
In this article from CNBC, some of the top-technicians share their thoughts on the recent volatility.
Tony Dwyer, Chief Market Strategist at Canaccord Genuity – Technical Analysis Radio
Here’s a great podcast featuring Market Strategist, Tony Dwyer. He discusses his process and gives his outlook on the markets right now.
Why Doesn’t This Matter This Time? – StockCharts.com
Greg Schnell discusses the weakness of small-cap stocks and tells readers not to ignore the Russell 2000 right now.
Market Volatility Weighs on Sector Trends – R.W. Baird
Willie Delwiche of Baird analyzes the relative strength, breadth, and momentum across each of the 11 sectors of the S&P 500.
Top 10 Tweets
As bad as yesterday was, the leading market averages (DJIA, S&P 500,, NASDAQ Comp.) are still above their respective June 3rd lows. Of course, we must witness re-accumulation before any meaningful upside/sustainable move is possible.
— Ralph Acampora CMT (@Ralph_Acampora) August 6, 2019
Get lost with your SPX drop superlatives from yesterday. The MOVE index of treasury vol saw its single biggest day percentage point spike since early 2016 — when global equities had just entered a bear market. pic.twitter.com/I5OOknlfW0
— Dani Burger (@daniburgz) August 6, 2019
Today looks like $SPX 's RSI(14) will cross back above 30. That's happened 20 times over the last 10 years, with an 89.5% probability of gain after 3 months, with a mean return of 5.9%: pic.twitter.com/AiUvaWyJVY
— Optuma (@Optuma) August 6, 2019
— Strategas (@StrategasRP) August 6, 2019
— Callum Thomas (@Callum_Thomas) August 5, 2019
Are the fins building a relative base despite the drop in yields? Insurance doing a lot of heavy lifting but still find it interesting. RSI has not been oversold on last two tries. $XLF $KIE $SPX $TNX pic.twitter.com/PS6b4efLVt
— Dan Russo, CMT (@DanRusso_CMT) August 6, 2019
Two-year low for copper. pic.twitter.com/pdcg6KeJnR
— Eddy Elfenbein (@EddyElfenbein) August 6, 2019
— Peter Brandt (@PeterLBrandt) August 6, 2019
If you're looking for relative strength in this environment, you might find it in…Greece? pic.twitter.com/eVkzFeU2lf
— Tom Bruni, CMT (@BruniCharting) August 6, 2019
Markets in Turmoil or Markets Ascending…the Exchanges Win! pic.twitter.com/vzaSgdCYer
— Sean Brown (@Sean_YCharts) August 6, 2019
You’re all caught up now. Thanks for reading!