Thursday, August 15th, 2019
Indices: US stocks were higher in today’s session with the Dow Jones Industrial Average closing up 100 points or 0.39%. The Russell 2000 was the weakest of the major indices, falling 0.40%.
Sectors: Consumer Staples led, gaining 1.50%. Energy lagged for the second day in a row, falling 0.62%.
Commodities: Crude Oil futures were lower by 1.32% to $54.44 per barrel. Gold futures rose 0.23% to $1,531 per ounce.
Currencies: The US Dollar Index gained 0.18%.
Interest Rates: The US 10-year Treasury yield fell to 1.502%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Mark Newton (@MarkNewtonCMT). It is a weekly candlestick chart of General Electric ($GE). The stock suffered its worst day in over a decade today, falling 11.30% after Madoff whistleblower Harry Markopolos accused the company of accounting fraud. Mark points out that price began to break down from a triangle pattern a full week before the Markopolos report was released. This reiterates our belief that news flow follows price and that all relevant information is baked into price. News like this should come as no surprise to chart watchers who have seen this stock in a multi-year downtrend. Technicians tend to ignore the news and instead focus on price action. This may be hard for some to understand, but the idea behind it is simple. An uptrend is an indication that the company is doing something right, while a downtrend tells you that there could be something wrong with the company. Remember, the trend is your friend!
Quote of The Day
“Excesses in one direction will lead to an opposite excess in the other direction.”
– Bob Farrell (Technical Analyst)
The Bears Have My Attention – Omaha Charts
For those of you that don’t understand all of the recent chatter about the yield curve, here’s a great piece from Trent Smalley of Omaha Charts telling you what you need to know.
Sentiment Still Bearish But That’s a Good Sign – Bespoke
This note from Bespoke takes a look at the extreme level of bearish sentiment from the latest AAII Sentiment Survey.
The Elliott Wave Wednesday Live Stream with Todd Gordon and Special Guest Brian Shannon – Trading Analysis.com
In this video, two top technical analysts, Brian Shannon and Todd Gordon discuss their process and share their thoughts on the market right now.
Analyst, Options Traders See 2-year Lows Ahead for Caterpillar – Schaeffer’s Investment Research
Schaeffer’s Investment Research points out that the options market is suggesting that Caterpillar’s stock ($CAT) is poised to fall further from here.
A Closer Look at Technical Support – LPL Finacial Research
In this note from LPL Financial Research, they break down the key technical developments to watch for on the S&P 500 including specific levels of support.
Top 10 Tweets
$SPY $SPX Obviously lots of damage and reason for caution (and cash) but the S&P is still hanging in. Still higher highs and lows this year and above 200 day that is turning up slightly. I'll hold off on panicking / getting net short…at least for now pic.twitter.com/7BXQCdIRsh
— Gregory Krupinski (@G_krupins) August 15, 2019
Hope I get this right…
on his show this morning @toddgordontrade reminded me of a phrase credited to @LindaRaschke "markets go to the obvious level, but in the least obvious way" to me that is the 200 DMA and VWAP from Dec low on $SPY pic.twitter.com/FAENqzdFHC
— Brian Shannon, CMT (@alphatrends) August 15, 2019
Today will join only 16 other days since the financial crisis when options traders turned over almost as many puts as calls. pic.twitter.com/Xy8XTPsPhH
— SentimenTrader (@sentimentrader) August 15, 2019
— Sean Brown (@Sean_YCharts) August 15, 2019
— Shane C. Murphy (@murphycharts) August 15, 2019
This is why I love and implement trend-following…
RSI on the 10-year Treasury has been oversold (repeatedly) for the last 9+ months.
Still, rates have continued to fall, even through historic support.
— Adam D. Koos, CFP®, CMT (@AdamKoos) August 15, 2019
The rest of the world pic.twitter.com/yz2jNwEylu
— Walter Murphy (@waltergmurphy) August 14, 2019
Bitcoin remains above the pace of its 2015-2017 bull run (for now). The 2015-2017 trend tested its trend MA multiple times (green arrows). The current trend has yet to do so. $BTC. pic.twitter.com/0KWR1I4Ax5
— Peter Brandt (@PeterLBrandt) August 14, 2019
— David Zarling (@360research) August 15, 2019
Have you ever seen people running into a burning building for safety?
You have now. pic.twitter.com/3W13b6u7O6
— Luke Gromen (@LukeGromen) August 15, 2019
You’re all caught up now. Thanks for reading!