Friday, September 18th, 2020
Indices: US Stocks ended the week on a sour note with the Dow Jones Industrial Average dropping 245 points or 0.88%. The S&P 500 and Nasdaq fell 1.12% and 1.07%, respectively. The Russell 2000 outperformed but still slipped 0.38%.
Sectors: All 11 sectors closed lower. Health Care led, inching lower by just 0.15%. Real Estate lagged, falling 1.98%.
Commodities: Crude Oil futures continued higher by 0.85% to $41.32 per barrel. Gold futures gained 0.63% to $1,962 per ounce.
Currencies: The US Dollar Index rose 0.10%.
Interest Rates: The US 10-year Treasury yield inched higher to 0.697%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day comes from Bespoke’s morning note. The chart shows the monthly % change in the spread between large-cap Growth and Value. Bespoke points out that Value is having its best month relative to Growth in nearly two decades. This comes after 11 consecutive months of Growth outperforming Value. This is clear evidence of rotation, which is constructive for the broader market in the long-run. Although this rotation probably feels anything but constructive if you’ve been overweight Growth like a lot of folks out there. For more evidence of this, take a look at the S&P 500’s new 52-week high list. A few weeks ago, that list was dominated by the sexy mega-cap Growth/Tech names. Today, we’re seeing boring old Value/Industrial names like John Deere and Dollar General hitting new 52-week highs. The question that remains – is this a sustainable change in leadership? Or, simply Value’s 15-minutes of fame?
Quote of the Day
“The greatest discovery of all time is that a person can change his future by merely changing his attitude.”
– Oprah Winfrey
S&P 500 Down 24 of 30 During Week After September Options Expiration, Average Loss 0.95% – Almanac Traders
Seasonality expert, Jeff Hirsch points out that the next week has a bearish track record.
IPOs: Boom or Bust – Ally Invest
2020 is on track to be the biggest year for IPOs in decades. In this note, Lindsey Bell breaks down everything you need to know about this surge in IPO activity.
Friday Market Update | September 18, 2020 – Chaikin Analytics
In this video, Dan Russo shares his thoughts on the Agricultural Commodities space.
Rocks Over Stocks – All Star Charts
Steve Strazza takes a look at Commodities and the Materials sector.
Petition to Release Real-Time Short Interest Data to the Market – Change.org
Short interest data is a great tool used 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!
S&P 500 50-day moving average… where'd the magic go?! pic.twitter.com/Hlgwx5IXik
— Sarah Ponczek (@SarahPonczek) September 18, 2020
Bears attempted to push $ES below the 3300 support level again… but dip buyers decided that it ain't gonna work.
'Make it or break it' show continues. pic.twitter.com/Z3vTheIWeM
— Yuriy Matso (@yuriymatso) September 18, 2020
Pretty neat that the VIX ended lower today pic.twitter.com/81uj6BlZK4
— Katherine Greifeld (@kgreifeld) September 18, 2020
— Grant Hawkridge (@granthawkridge) September 18, 2020
New 52-week high pic.twitter.com/kcDGb1HJnZ
— Shane C. Murphy (@murphycharts) September 18, 2020
Even as technology rolls over, sectors like Materials $XLB have emerged as strong relative performers making new multi-year highs again this week. Strongest SCTR names in the sector: $FCX $EMN $MOS $LYB $ALB pic.twitter.com/34G0Ri2MyV
— David Keller, CMT (@DKellerCMT) September 18, 2020
— Ian McMillan, CMT (@the_chart_life) September 18, 2020
Deere, Freeport, and Caterpillar obviously didn't get the memo about Tech
Even if Tech drags the S&P 500 below $3,400, what's to say that these three and the Commodity/Materials trade more broadly will stop working, considering Mats only make up 2.7% of the $SPX?$DE $FCX $CAT pic.twitter.com/G0j978Q2bG
— Louis (@haumicharts) September 18, 2020
Wheat has been slammed every time it approaches $6 per bushel in the previous 6 years.
This base is huge.
— Contrarian Investors (@lincolnsamelson) September 18, 2020
— Matt (@commander10) September 18, 2020
New All-Time Low pic.twitter.com/vYtfY01uYD
— Jim Bianco (@biancoresearch) September 18, 2020
$GE was everyone's '"can't miss, great company, buy it and forget it" stock in 1999 & 2000 & at one time the largest market cap stock.
It's down 78% from the year 2000 highs.
A (perceived) "good company" does not always equal a good ROI.
Respect price, Manage risk. pic.twitter.com/dhzaLs3Fto
— Larry Tentarelli, Blue Chip Daily (@LMT978) September 18, 2020