Thursday, September 17th, 2020
Indices: US Stocks closed lower in today’s session with the Dow Jones Industrial Average slipping 130 points or 0.47%. The S&P 500 and Nasdaq dropped 0.84% and 1.27%, respectively. The Russell 2000 fell 0.63%.
Sectors: Materials led, gaining 0.74%. Real Estate lagged, dropping 2.21%.
Commodities: Crude Oil futures continued higher by 2.02% to $40.97 per barrel. Gold futures fell 0.87% to $1,950 per ounce.
Currencies: The US Dollar Index slipped 0.21%.
Interest Rates: The US 10-year Treasury yield inched lower to 0.684%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Fun fact: an equal-weighted version of the S&P that strips out market-cap biases is beating the S&P 500 by the most since 2009 this month. pic.twitter.com/poNGveCc7y
— Elena Popina (@lena_popina) September 17, 2020
Today’s Chart of the Day was shared on Twitter by Elena Popina (@lena_popina). The chart shows the monthly % change in the spread between the equal-weight S&P 500 and the normal cap-weight S&P 500. September is far from over, but as Elena points out, equal-weight is having its best month relative to cap-weight since 2009. This is evidence of broadening participation in the S&P 500, which is bullish for the overall market. This probably doesn’t feel very bullish if you’ve been overweight some of the largest stocks, like $AAPL, $MSFT, $AMZN, and $FB. All four of these market darlings are more than 10% off their September 2nd highs. However, it’s hard to argue that this isn’t a healthy development for the market longer-term. Especially considering that, prior to September, there was so much concern over the fact that a handful of Mega-Cap stocks were doing all the heavy lifting for the S&P 500.
Quote of the Day
“There are old traders and there are bold traders, but there are very few old, bold traders.”
– Ed Seykota
‘So Far, This Looks Like a Healthy Correction’: Baird Investment Strategist – Yahoo Finance
In this clip from Yahoo Finance, Willie Delwiche explains why he views the recent weakness as a ‘healthy correction.’
September Conference Call: 5 Key Takeaways – All Star Charts
Steve Strazza of All Star Charts highlights five important technical developments to keep an eye on this month.
Is The Technology Sector at Risk? – StockCharts.com
Julius de Kempenaer examines the ongoing rotation out of the Technology sector.
Gold Breakout Triggers Buy Signal, Is $3,000 Next Target? – Kimble Charting Solutions
Chris Kimble reiterates his $3,000 price target for Gold.
Petition to Release Real-Time Short Interest Data to the Market – Change.org
Short interest data is extremely useful to identify potential short squeeze opportunities. The problem is, FINRA only releases this data twice per month! Our partners at TrendSpider are petitioning FINRA to release this data in real-time. Please consider signing this petition, thanks!
The S&P 500 really loves its 50-day moving average 👀
— Callie Cox (@callieabost) September 17, 2020
That S&P 500 50-day moving average is like magic pic.twitter.com/pRT8Re5VlX
— Sarah Ponczek (@SarahPonczek) September 17, 2020
Weird day yesterday: Despite a 0.5% decline, breadth in the S&P 500 was positive and stronger than the day before and the percentage of overbought stocks actually increased. https://t.co/qJ8lslJUVH pic.twitter.com/sTJzBNhjDc
— Bespoke (@bespokeinvest) September 17, 2020
Growth correction does not look over yet. pic.twitter.com/ZKtpilavNP
— Strategas (@StrategasRP) September 17, 2020
This development is something to ponder in regards to how aggressive we might want to be in Growth and Discretionary stocks. pic.twitter.com/rE2fUK09VH
— Ian McMillan, CMT (@the_chart_life) September 17, 2020
Online retailers have begun under-performing the broad retail industry after an extremely strong run of outperformance since last year. pic.twitter.com/nGjrjnXqmP
— Andrew Thrasher, CMT (@AndrewThrasher) September 17, 2020
#Gold is really wound up tightly. Middle of its rising channel, coiled into a symmetrical triangle (pennant), upper bound of bull flag, sitting right at anchored VWAP, with daily RSI sitting ~50. Price is setting up for a move & probabilities favor upside, imo. $GLD $GC $GDX pic.twitter.com/ZNRn3CTqzd
— Tarek I. Saab (@FibLines) September 17, 2020
The breakout is on in the largest component of $XLF, Berkshire Hathaway, if we're above $215.
— Louis (@haumicharts) September 17, 2020
— Goldie (@Goldie_CFA) September 17, 2020
I think, in general, we all want broader participation in the market. We don't want one sector to dominate flows / performance.
But when we finally get a bit of rotation to satisfy that want, people look around and say "what's wrong?"
— Michael Antonelli (@BullandBaird) September 17, 2020