Wednesday, September 9th, 2020
Indices: US Stocks rebounded in today’s session with the Dow Jones Industrial Average gaining 440 points or 1.60%. The S&P 500 and Nasdaq moved higher by 2.01% and 2.71%, respectively. The Russell 2000 underperformed but still rose 1.45%.
Sectors: All 11 sectors closed higher. Technology led, gaining 3.26%. Energy lagged but still moved higher by 0.68%.
Commodities: Crude Oil futures rose 3.51% to 38.05 per barrel. Gold futures moved higher by 0.60% to $1,955 per ounce.
Currencies: The US Dollar Index fell 0.30%, ending a six-day winning streak.
Interest Rates: The US 10-year Treasury yield rose to 0.703%.
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 (@RyanDetrick). The past few sessions have been a wild ride for Stocks, specifically Tech stocks. Ryan points out that in just three days, the Nasdaq went from an all-time high to being down 10%, marking the fastest correction on record. The table shows the forward returns following the prior 11 fastest corrections. Ryan points out that the forward returns have historically been quite strong. As you can see, the median returns were positive across all four-time frames. To be fair, the short-term average returns (1-month) have been lackluster. However, the longer-term average returns (3, 6, and 12-months) have been impressive. As we mentioned on Friday, corrections in bull markets are healthy, as they help to reset sentiment and shake out the weak hands. As always, this is just one of many data points to consider.
Quote of the Day
“There are actually 3 certainties in life: death, taxes, and the fact that the VIX mean reverts.”
– Michael Sacchitello
Pullback Seen Around the World – Bespoke
Bespoke examines how equity markets around the world held up amid the recent pullback.
Market Bears’ Whitewater Raft Now Dry-Docked – StockCharts.com
Mish Schneider shares her technical perspective on the Nasdaq.
The Precious Metals – The Rotation Report
Aaron Jackson takes a quick look at the Precious Metals space.
Stocks Vs. Volatility – Standoff Gets Flipped
Dana Lyons weighs-in on the unusual price action that we’ve seen between Stocks and Volatility recently.
When the Time Comes To Buy, You Won’t Want To – CMT Association
In this webinar, the legendary Walter Deemer shares insights from his 50+ year career as a Technical Analyst on Wall Street.
The S&P 500 closed above the upward-sloping blue trendline Wednesday. The longer it stays above, the more meaningful it becomes. pic.twitter.com/FP3rd2F4uV
— Chris Ciovacco (@CiovaccoCapital) September 9, 2020
The NDX has lost 8%+ over three sessions (immediately following a 52-week high) only five other times.
— Carl Quintanilla (@carlquintanilla) September 9, 2020
The $FANG + complex has moved noticeably below it's 20 DMA. This has happened on 7 occasions over the last 3 years and only one led to a V shaped move higher. The other 6 had rounded bottoms or more downside before starting a new uptrend. $AAPL $NFLX $FB $GOOG $AMZN $SPY $QQQ pic.twitter.com/wWQ0Ew3QXs
— TT Trading (@TT__Trading) September 9, 2020
— J.C. Parets (@allstarcharts) September 9, 2020
"Average" Discretionary stock outperformed yesterday. pic.twitter.com/oy2r5Hcph9
— Strategas (@StrategasRP) September 9, 2020
S&P Software relative strength seasonality. pic.twitter.com/4UIZwyfifK
— Nautilus Research (@NautilusCap) September 9, 2020
The Nasdaq 100 ($NDX) has put in for its biggest bullish gap since April 11 following its biggest bearish gap since March 18. I see this more as a sign of volatility than conviction in a reversal pic.twitter.com/KhGZDakeAX
— John Kicklighter (@JohnKicklighter) September 9, 2020
1/2 We often hear that the 50-sma doesn't indicate support & MAs are invisible lines. $QQQ stopped exactly on the 50-sma. As did $ADBE $AMZN $AMCR $BBL $DHI $DOCU $ENPH $GOLD $HD $LEN $LVGO $MAS $NFLX $NOW $PCAR $PEP $RIO $ROKU $SEDG $SIL $SQ $TECK $TSLA $V $VEEV among many… pic.twitter.com/MipxIJRSPb
— Larry Tentarelli, Blue Chip Daily (@LMT978) September 9, 2020
Gold on that 50DMA as well. pic.twitter.com/aN5u9bg7vE
— PivotTrader 🟢💬 (@pivotanalytics) September 9, 2020
Lumber, for fun…3 expanded limits to the downside. Broadening pattern in momentum indicators mirrors the price instability at lofty levels. (TSLA had same) pic.twitter.com/5tcfQqAp6w
— Linda Raschke (@LindaRaschke) September 9, 2020