Wednesday, September 16th, 2020
Indices: US Stocks were mixed in today’s session. The Dow Jones Industrial Average inched higher by 37 points or 0.13%. The S&P 500 and Nasdaq fell 0.46% and 1.25%, respectively. Small-Caps outperformed, with the Russell 2000 gaining 0.92%.
Sectors: Energy led significantly, rising 4.01%. Technology lagged, falling 1.55%.
Commodities: Crude Oil futures moved higher by 4.91% to $40.16 per barrel. Gold futures rose 0.27% to $1,967 per ounce.
Currencies: The US Dollar Index was flat, changing just 0.03%.
Interest Rates: The US 10-year Treasury yield rose to 0.695%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Sam McCallum (@honeystocks1) September 16, 2020
Today’s Chart of the Day was shared on Twitter by Sam McCallum (@honeystocks1). On top is a chart of the US Dollar Index, and on the bottom is a chart of the S&P 500 inverted. The US Dollar and the S&P 500 have been in a negatively correlated regime in recent months. The Dollar has been aggressively trending lower since March. But at this point, it could easily mean revert higher in the near-term. Sam poses an important question here – What would a ripping Dollar mean for Stocks? As we know, correlations can breakdown at any time. However, as long as this inverse relationship exists, it would be wise to keep an eye on the US Dollar.
Quote of the Day
“Mimicking the herd invites regression to the mean.”
– Charlie Munger
Here’s What a Stronger US Dollar Currency Means for Financial Markets – See It Market
David Keller discusses the potential implications of a rally in the US Dollar.
Top Stocks to Buy and Sell Ahead of Window Dressers – Schaefer’s Investment Research
Rocky White looks for quantified evidence of the Window Dressing Theory – the tendency for portfolio managers to buy outperforming stocks, and sell underperforming stocks before the end of the quarter.
Market Loves/Hates Fed Days – StockCharts.com
Mish Schneider shares her thoughts on this week’s price action.
Mid-Week Thoughts – Chaikin Analytics
In this quick video, Dan Russo highlights some of the major developments to focus on in the near-term.
Are You Ready For Another Run in Gold? – All Star Charts
Sean McLaughlin outlines a bullish options trade on the Gold Miners ETF, $GDX.
— Andrew Thrasher, CMT (@AndrewThrasher) September 16, 2020
— Drew Wells, CMT, CIMA® (@DrewTheCharts) September 16, 2020
— Rolando Santos 🌊 (@TKPTrader) September 16, 2020
In early June we noted that the S&P 500 significantly above it's 50-day MA is actually a bullish event. Many doubted it, as they said it was overbought.
3 months later up 6.0%.
The 6- and 12-month returns historically are quite strong as well. Will it work again? pic.twitter.com/qQqDZTdkrw
— Ryan Detrick, CMT (@RyanDetrick) September 16, 2020
Dow transports at a record, up more than 73% since March pic.twitter.com/Ty1seatJbk
— Sarah Ponczek (@SarahPonczek) September 16, 2020
— Steven Strazza (@sstrazza) September 16, 2020
energy and financials leading, you love to see it pic.twitter.com/5MCq9IZetT
— Katherine Greifeld (@kgreifeld) September 16, 2020
2.5-year bear market over for Asia bellwethers. pic.twitter.com/93lPzjbmoV
— Strategas (@StrategasRP) September 16, 2020
Month is only half over, but value’s been outperforming growth by most since 2008
[Past performance is no guarantee of future results] pic.twitter.com/J7PERkj5V1
— Liz Ann Sonders (@LizAnnSonders) September 16, 2020
— Steve Deppe, CMT (@SJD10304) September 16, 2020