Wednesday, September 11th, 2019
Indices: US stocks were higher in today’s session with the Dow Jones Industrial Average gaining 228 points or 0.85%. The Russell 2000 was the strongest of the major indices for the third day in a row, rallying 2.12%. The Nasdaq was up 1.06%, and the S&P 500 closed above 3000 for the first time since July.
Sectors: Technology led, gaining 1.04%. Real Estate was the only sector to close lower, falling 0.23%.
Commodities: Crude Oil futures dropped 2.84% to $55.74 per barrel. Gold futures were higher by 0.25% to $1,503 per ounce.
Currencies: The US Dollar Index rose 0.31%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.745%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Michael Antonelli (@BullandBaird). The chart shows the performance of Francesca’s Holding Corp. ($FRAN), over the past five days. Michael points out that this retail stock has been surging over the past few days after a strong Q2 earnings report. The stock soared 59.42% today and is up more than 200% over the past two days. This is a textbook example of a short squeeze. Short interest was extremely high, at 41% before the earnings report. Short interest can be used as a contrarian signal when it’s at an extreme. When short interest is very high, it’s often a sign that everyone who wants the stock to go down has already taken a position. These shorts have to buy to close out their position eventually. When price starts to rise unexpectedly, shorts are collectively forced to buy to cover to avoid a substantial loss or margin call, sending the stock sharply higher.
Quote of The Day
Time for Gold to Shine? – LPL Financial Research
In this note from the team at LPL Financial Research, they explain why the rally in Gold is likely to continue.
Stock Market Conditions are Cyclically Oversold, Oppenheimer’s Wald Says – Bloomberg
Ari Wald of Oppenheimer made an appearance on Bloomberg today to discuss his thoughts on the market and why he’s bullish on Semiconductor stocks.
Industrials in Focus – All Star Charts
Tom Bruni of All Star Charts calls to our attention that Industrials are showing relative strength. He then breaks down the charts of two industry groups within the sector that are beginning to stand out to him.
Small Caps Break Above Resistance – 4 Turnaround Candidates to Consider – StockCharts.com
Mary Ellen McGonagle points out that the Small-cap Russell 2000 index is making a comeback. She offers four components within the index that she thinks are headed higher.
Frank Cappelleri on Momentum Vs. Value – TD Ameritrade Network
Frank Cappelleri of Instinet was on TD Ameritrade Network today to weigh in on the recent rotation from Momentum to Value. In addition, he shares his thoughts on Financials, Software, Retail, and Energy.
Top 10 Tweets
— Peter Brandt (@PeterLBrandt) September 11, 2019
— David Keller, CMT (@DKellerCMT) September 11, 2019
— Strategas (@StrategasRP) September 11, 2019
$SPX Momentum vs Value.
Financial pundits & the usual noisemakers are labeling this sharp factor rotation as a "bloodbath"/sell signal.
History shows the biggest spikes were last-minute positioning resets that kick-started *massive* global cyclical rallies (2002, 2009, 2016). pic.twitter.com/WW8ANcQyJE
— Macro Charts (@MacroCharts) September 11, 2019
Momentum factor still above the 2018 peak, but major breakdown relative to the S&P 500. pic.twitter.com/YEv2hlF082
— Ryan Detrick, CMT (@RyanDetrick) September 11, 2019
— Louis (@LASChartinggg) September 11, 2019
— Dana Lyons (@JLyonsFundMgmt) September 11, 2019
— Aaron (@ATMcharts) September 11, 2019
— BostonCharts (@bostonchaahhts) September 11, 2019
— OmahaCharts, CMT (@omahacharts) September 11, 2019
You’re all caught up now. Thanks for reading!