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Today’s Summary
Tuesday, October 15th, 2019
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 237 points or 0.89%. The Nasdaq was the strongest of the major averages, gaining 1.24%.
Sectors: Health Care led, gaining 1.82%. Consumer Staples lagged, falling 0.43%.
Commodities: Crude Oil futures fell 1.46% to $53.59 per barrel. Gold futures dropped 0.94% to $1,484 per ounce.
Currencies: The US Dollar Index slipped 0.12%.
Interest Rates: The US 10-year Treasury yield rose to 1.766%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared on Twitter by Aaron Jackson (@ATMcharts). It’s a ratio chart of the Consumer Discretionary sector ($XLY) relative to the Consumer Staples sector over the past 12-months. When the ratio is rising, it means Consumer Discretionary stocks are outperforming Consumer Staples stocks and vice versa. Aaron points out that this ratio is currently testing its downtrend line. This ratio is an important risk-on/risk-off indicator for the broader market. It would be positive for the bull case if Consumer Discretionary is able to break out relative to Consumer Staples.
Quote of The Day
Top Links
Why Oil Prices are Probably Going Lower – Bloomberg
Steve Sosnick of Interactive Brokers joins host Abigail Doolittle to share his bearish outlook on Crude Oil.
Semiconductors Exhibit Relative Strength – The Closing Print
Vinny Gambini discusses today’s breakout in Semiconductor stocks and focuses in on one chipmaker, in particular, Nvidia ($NVDA).
Nike Just Broke Through Resistance, and it Means More Upside, Chart Suggests – CNBC
Head of Technical Analysis at Oppenheimer, Ari Wald argues that Nike’s chart ($NKE) is set up for further upside.
Banks Should Send Critical Message to Stocks This Week – Kimble Charting
Chris Kimble explains why he’s watching Bank stocks this week.
The Nasdaq Breadth Indicator to Watch Now – Schaeffer’s Investment Research
Bernie Schaeffer of Schaeffer’s Investment Research checks up on market breadth by analyzing the percentage of Nasdaq stocks above their 200-day moving average.
Top 10 Tweets
In '08 the market broke thru, retested, and failed at the 200 dma.
Since then we've seen 5 repeats of the same setup fail to the upside instead.$SPX pic.twitter.com/j3Wurb4jY2
— Arun S. Chopra CFA CMT? (@FusionptCapital) October 15, 2019
Sunday was the 11th anniversary of the stock market's best day in the last 86 years (see the first black HLC bar following eight red days). On October 13, 2008, the Dow gained 936.42points or 11.08%, but it wasn't an all-clear signal. The low didn't come for five more months. pic.twitter.com/AOWcscFufD
— Eddy Elfenbein (@EddyElfenbein) October 15, 2019
Semis on an absolute and relative basis $SMH#bullporn pic.twitter.com/zl7sIJalNu
— BostonCharts (@bostonchaahhts) October 15, 2019
Semiconductors ($SOX) at a new high is bullish for the market. Momentum is lagging, but cannot call it a divergence unless it rolls over shy of a higher high. pic.twitter.com/nikicSreGl
— Willie Delwiche (@WillieDelwiche) October 15, 2019
$EUFN Euro Financials +8.6% in a week….
back above its 200d MA pic.twitter.com/eVZh8THXfg
— Christian Fromhertz (@cfromhertz) October 15, 2019
Oil Positioning.
Hedge Funds have completely abandoned the Oil market — total capitulation — while prices continue to base at the 200wma since January (see Oct 11 tweet).
Since 2010, nearly every time positioning got this light Oil was close to a *Major* medium-term rally. pic.twitter.com/TDo3Z2pXYG
— Macro Charts (@MacroCharts) October 15, 2019
That's a weekly MACD sell signal on gold, in case you hadn't noticed…$GLD pic.twitter.com/pSfrbibmjJ
— David Keller, CMT (@DKellerCMT) October 15, 2019
BAYCREST: if the 10-year yield can break above 1.8%, it may signal a turn in the outperformance of “low-vol” names.
Already, “we’re starting to see some short-term breakdown” in names like $PG .. pic.twitter.com/sw0FCYJseb
— Carl Quintanilla (@carlquintanilla) October 15, 2019
3mo/10yr yield curve no longer inverted.
Previous 2 times happened a recession was around the corner.
Those 2 times saw ST rates tank=steeper curve (a bull steepener). A worry.
Currently, LT rates are increasing >than ST=steeper curve (a bear steepener). This is more normal. pic.twitter.com/hQJXNOTFom
— Ryan Detrick, CMT (@RyanDetrick) October 15, 2019
$JPM breaking out early this week on good e/r.
Breakouts on important names like this, if they hold, aren't bearish. Pretty sure y'all knew that. pic.twitter.com/LicHcFLKYj
— Tex+ (@theycallmetex) October 15, 2019
Upcoming Events
Tuesday, October 22nd – New York Chapter Meeting Featuring Sam Stovall
You’re all caught up now. Thanks for reading!