Wednesday, August 14th, 2019
Indices: US stocks had their worst day of 2019 today with the Dow Jones Industrial Average falling 800 points or 3.05%. The S&P 500 and Nasdaq fell 2.93% and 3.02%respectively.
Sectors: All 11 sectors of the S&P 500 were lower. Utilities led, falling 0.82%. Energy lagged, dropping 3.92%.
Commodities: Crude Oil futures were lower by 3.33% to $55.17 per barrel. Gold futures rose 0.89% to $1,527 per ounce.
Currencies: The US Dollar Index gained 0.15%.
Interest Rates: The US 10-year Treasury yield fell to 1.583%. The closely watched 2-year/10-year yield curve inverted, sparking concerns over the economy.
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 Michael Batnick (@michaelbatnick). It’s a dot plot showing the daily percentage change of the Dow Jones Industrial Average over the past 100 years. Today was without a doubt an ugly day for stocks with the Dow dropping 3.05%. There were a lot of headlines pointing out that today was the 4th largest point drop in the history of the Dow. However, when you normalize the data in percentage terms, today’s decline doesn’t seem nearly as historic. Michael points out that today marked the 307th time that the Dow fell 3% in the past century. It’s silly to quote moves in terms of point drops. In fact, the other 3 largest point drops all occurred last year. The fact that this was one of the largest point drops doesn’t mean a whole lot. If anything, it mostly speaks to the fact that the Dow is higher now than it has been in past years. You need to normalize the data in percentage terms before you can make any historical comparison.
Quote of The Day
What the MAGA Index is Signaling About US Stocks – The Chart Report
In this week’s Chart of the Week column, we take a look at a custom benchmark that we call the MAGA index. It’s an equal-weighted average of the four largest US companies (Microsoft, Apple, Google, and Amazon.)
Prior Equity Responses to 2yr-10yr Treasury Yield Curve Inversions – Andrew Thrasher
Technical Analyst, Andrew Thrasher takes a look at the stock market’s response to past yield curve inversions.
A Bearish Continuation Pattern Takes Shape in IWM – StockCharts.com
In this piece, Arthur Hill points out a bearish pattern that’s forming on the chart of the small-cap Russell 2000 ETF, $IWM.
Podcast with Todd Sohn – Technical Analysis Radio
Todd Sohn of Strategas Securities and host, JC Parets discuss the current outlook for US Stocks, Interest Rates, Precious Metals, and sentiment.
BofA Merrill’s Ciana Says Yield Curve Could Invert 50 Basis Points, Gold May Hit $2,300 – Bloomberg
In this clip from Bloomberg, Technical Strategist Paul Ciana and Abigail Doolittle examine the recent 2-year/10-year yield curve inversion. In addition, he shares his thoughts on Gold prices.
Top 10 Tweets
Volatility continues and is now fraught with record lows in rates…..so far the market gives us no indication that it is bottoming….the June 3rd lows are set to be retested and if broken, further serious downside visible. Place close stops – too early to buy!
— Ralph Acampora CMT (@Ralph_Acampora) August 14, 2019
Today's Heat Map blood Red pic.twitter.com/ffAARhmha4
— CtheLightTrading (@canuck2usa) August 14, 2019
Today was the 4th largest point drop ever for the Dow (going back to 1896).
The good news?
It was only the 380th largest % drop ever. pic.twitter.com/bg9mx75oDn
— Ryan Detrick, CMT (@RyanDetrick) August 14, 2019
— jeroen blokland (@jsblokland) August 14, 2019
— Tracy Alloway (@tracyalloway) August 14, 2019
Someone out there sold $TLT in late 2018 because it's RSI(14) was "overbought".
Obviously they don't follow me. pic.twitter.com/NesqOOpeKn
— Steve Deppe, CMT (@SJD10304) August 14, 2019
— Sam McCallum (@honeystocks1) August 14, 2019
One smallish positive: copper has not made a new low. Support ~$2.55/lb still holding (at $2.60/lb today). pic.twitter.com/eaenFxTkCM
— Willie Delwiche (@WillieDelwiche) August 14, 2019
— Dana Lyons (@JLyonsFundMgmt) August 14, 2019
Tonight at 7pm EST: @CNBC "Markets in Turmoil."
May the odds be ever in your favor. pic.twitter.com/rlYIe19wZG
— Charlie Bilello (@charliebilello) August 14, 2019
You’re all caught up now. Thanks for reading!