Friday, August 16th, 2019
Indices: US stocks ended the week on a positive note with the Dow Jones Industrial Average closing up 307 points or 1.20%. The Russell 2000 was the strongest of the major indices, advancing 2.19%.
Sectors: All 11 sectors of the S&P 500 closed higher. Industrials led, gaining 1.93%. Utilities lagged but still gained 0.51%.
Commodities: Crude Oil futures rose 0.57% to $54.75 per barrel. Gold futures fell 0.50% to $1,523 per ounce.
Currencies: The US Dollar Index inched up 0.06%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.562%.
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 Strategas Research Partners (@StrategasRP). It is a chart of the 20+ Year Treasury Bond ETF, $TLT with a 200-day moving average in red. The indicator in the lower pane measures how extended price is from the 200-day moving average. Strategas notes that price is extremely extended right now. Market Strategist, Bob Farrell once said: “markets return to the mean over time.” Think of this concept like a rubber band that’s stretched too far in one direction to the point where it quickly snaps back in the opposite direction. The red arrows mark each time that $TLT was extremely extended from the 200-day moving average. Each time, price quickly reverted back to the mean. Given this information, it wouldn’t be surprising to see a correction in Treasury Bonds in the near-term.
Quote of The Day
“An expert is someone who knows some of the worst mistakes that can be made in his subject, and how to avoid them.”
– Werner Heisenberg (Physicist)
Weekly Stock Market Analysis August 16, 2019 – Brian Shannon
Here’s Brian Shannon’s weekly market video where he recaps this past week and gives his outlook for the week ahead.
How Options Pit Founder is Playing Disney – Bloomberg
Options Pit founder Mark Sebastian shares his thoughts on the recent stock market volatility and outlines a bullish options trade on Disney ($DIS).
August Investment Strategy Outlook – R.W. Baird
In this research note from Baird, they offer their current outlook for stocks and bonds.
The 120 Best Charts in the World – All Star Charts
Here is a slide deck from All Star Charts most recent conference call containing 120 annotated charts that are worth keeping an eye on right now.
Renaissance Macro Research’s Degraaf: Why Small-Caps Continue to Fall – CNBC
In this clip from CNBC, Jeff Degraaf of Renaissance Macro Research discusses the weakness of the small-cap Russell 2000 and why he thinks it could continue to fall.
Top 10 Tweets
Noise: Stocks rally on headlines, stocks sell-off on headlines.
News: For now at least, the S&P 500 remains tethered to its January 2018 peak. pic.twitter.com/HefMorbjTQ
— Willie Delwiche (@WillieDelwiche) August 16, 2019
— Dan Russo, CMT (@DanRusso_CMT) August 16, 2019
NYSE up volume running at 88%, third-best session this year pic.twitter.com/22jP8xjuvg
— Luke Kawa (@LJKawa) August 16, 2019
Total Returns, Last 5 Years…
S&P 500: +61%
Retailers: -5% pic.twitter.com/8f2sLWruhx
— Charlie Bilello (@charliebilello) August 16, 2019
— Dana Lyons (@JLyonsFundMgmt) August 16, 2019
"Investors who have ridden on the shoulders of private equity firms have outperformed the S&P 500 YTD.
— I. Vodenitcharov CFA CMT (@iv_technicals) August 16, 2019
The TLT Treasury ETF hit its highest 'overbought' RSI reading ever yesterday… pic.twitter.com/lUzqy8RvqN
— The Bear Traps Report (@BearTrapsReport) August 16, 2019
Since 1962, a yield curve inversion tends to be good for Health Care's relative performance. The major exception being the early 1970s…..there are always exceptions. pic.twitter.com/aT2B5BazyC
— Renaissance Macro (@RenMacLLC) August 16, 2019
Percentage of yield curves inverted around the world now over 50% pic.twitter.com/fWbZzjC251
— Jeffrey Kleintop (@JeffreyKleintop) August 15, 2019
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) August 16, 2019
You’re all caught up now. Thanks for reading!