Tuesday, September 10th, 2019
Indices: US stocks were higher in today’s session with the Dow Jones Industrial Average gaining 74 points or 0.28%. The Russell 2000 was the strongest of the major indices for the second day in a row, rallying 1.23%. The S&P 500 and Nasdaq finished more or less flat, changing just 0.03% and 0.04%, respectively.
Sectors: Energy led for the third straight session, gaining 1.18%. Real Estate lagged, falling 1.47%.
Commodities: Crude Oil futures slipped 0.86% to $57.37 per barrel. Gold futures dropped 0.79% to $1,499 per ounce.
Currencies: The US Dollar Index was flat, changing just 0.04%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.744%.
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 Sheldon McIntyre (@hertcapital). It’s a ratio chart showing the performance of the Momentum Factor ETF, $MTUM versus the Value Factor ETF, $VLUE. Over the past few days, there has been a sharp rotation out of Momentum stocks and into Value stocks. Sheldon points out that this has been the largest three-day percentage drop for Momentum relative to Value since 2013. It’s important to note that Momentum has significantly outperformed Value for years now. However, if this ratio fails to bounce soon, it could signal the beginning of a more significant rotation away from Momentum and into Value. We take a closer look at this development in our most recent report “Factor Battle.”
Quote of The Day
Factor Battle – The Chart Report
In the past couple of days, there has been a swift rotation out of Momentum Stocks and into Value Stocks. In this report, we share some key insights into this development.
September Small-Cap Rally Underway – Almanac Trader
The Small-cap Russell 2000 has been particularly strong the past few days. Seasonality Expert, Jeff Hirsch explains that this is no surprise, as Small-caps tend to get a lift in early Septemeber.
DecisionPoint Daily Diamonds – StockCharts.com
Erin Swenlin of StockCharts.com shares five “diamonds in the rough” that are showing improving technical conditions.
S&P 500 Breakout Stocks – Bespoke
In this note, Bespoke brings to our attention several components of the S&P 500 that are breaking out of resistance.
Equities Show Promise – Peter Brandt
Peter Brand highlights some classic chart patterns that are developing on some of the most important equity indices from around the world.
Top 10 Tweets
It has been 31 trading days since the S&P made the last all-time high. Over that 31 trading day period, the S&P 500 has not touched 200-day intraday. If institutions believe the end is near, that will change in short order; has not yet. Day by Day. $SPX pic.twitter.com/JY877iEFzU
— Chris Ciovacco (@CiovaccoCapital) September 10, 2019
— Sam McCallum (@honeystocks1) September 10, 2019
The Russell Value/Growth ratio is (already) on track for its biggest 1-week rally since 2009 – lots of stodgy value investors flying high this week (and fund managers who piled into momentum names feeling down!) pic.twitter.com/AwbpNWf0Gk
— Matt Weller CFA, CMT (@MWellerFX) September 10, 2019
— Oliver Renick (@OJRenick) September 10, 2019
There's a bit of an unwind in the momentum vs. value trade going on here. Over the past 2 days, the momentum etf has underperformed the value ETF by 5.8%, the largest 2-day underperformance of momentum since their inception in 2013. $MTUM $VLUE pic.twitter.com/wcmZ9hzZEL
— Charlie Bilello (@charliebilello) September 10, 2019
— ivanhoff (@ivanhoff2) September 10, 2019
A Buffalo (Springfield) Market:
"There's something happening here
What it is ain't exactly clear…" pic.twitter.com/OSd17kBvG3
— Walter Deemer (@WalterDeemer) September 10, 2019
Value Line Geometric Index ($XVG) and % of $SPX stocks above 200-day average are reflecting the beneath the surface strength that has been widely commented on over past few days. $XVG above 540 would break pattern of lower highs and lower lows. pic.twitter.com/KWmCj91QX9
— Willie Delwiche (@WillieDelwiche) September 10, 2019
— 🔴 I. Vodenitcharov CFA CMT (@iv_technicals) September 10, 2019
— jeroen blokland (@jsblokland) September 10, 2019
You’re all caught up now. Thanks for reading!