Thursday, October 17th, 2019
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average inching up 24 points or 0.09%. The Russell 2000 outperformed the rest of the major indices, advancing 1.10%.
Sectors: 10 out of the 11 sectors closed higher. Health Care led, gaining 0.74%. Technology was the only sector to close lower, slipping 0.20%.
Commodities: Crude Oil futures moved higher by 1.07% to $53.93 per barrel. Gold futures rose 0.29% to $1,498 per ounce.
Currencies: The US Dollar Index dropped 0.42%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.75%.
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 JC Parets (@allstarcharts). It’s a monthly candlestick chart of Dow Futures going back to 2004. The chart shows the key Fibonacci extension levels (161.8%, 261.8%, and 423.6%) measured from the 2008 decline. The chart serves as a great example of the way price tends to behave around important Fibonacci levels. The Dow broke above the 2007 high in 2013. It then spent the next two years rallying until it ran into the 161.8% Fibonacci extension. At which point, the Dow spent a year and a half (2015-late 2016) consolidating before breaking out after the 2016 election. From there, the index steadily rallied to the next Fibonacci level, 261.8%. Price is finally breaking above this level after having spent over a year and a half consolidating below it. JC explains that the risk is to the upside as long as we’re above that 261.8% Fibonacci extension, around $27,000.
Quote of The Day
Open Season for Small Caps – Almanac Trader
Seasonality expert, Jeff Hirsch points out that small-caps tend to begin outperforming large-caps around this time of year.
The Six Most Powerful Charts on Wall Street – Ciovacco Capital Management
Chris Ciovacco examines the structure of the 200-day moving average in past bear markets and compares them to the structure of today’s 200-day moving average.
Positive Sentiment Surge – Bespoke
Bespoke takes a look at the results of the latest AAII Sentiment Survey. They explain that bullish sentiment has rebounded from depressed levels.
Stock Market Halftime Report – Honey Stocks
In this video, Sam McCallum shares his thoughts on 20 charts in 20 minutes.
The Value of Relative Strength and Guest Jeff Huge – The Final Bar
David Keller interviews Technical Analyst, Jeff Huge. They discuss relative strength and Jeff shares three long-term charts to keep an eye on.
Top 10 Tweets
MA Breadth retaking the 50% threshold one at a time. none pulling away from it yet though. pic.twitter.com/NXfiWlRaCt
— GTLackeyJr CMT (@gtlackey) October 17, 2019
— Charlie Bilello (@charliebilello) October 17, 2019
The most bearish active investment manager is twice as bearish as the most bullish one is bullish, per the latest NAAIM survey.
The last time that happened was 5 years ago. pic.twitter.com/wLVkjotiuh
— SentimenTrader (@sentimentrader) October 17, 2019
People dissing equities because stock gone nowhere making a conceptual error:
– since WWII, 3x stocks when nowhere 20 months. 3 of 3 times upside breakout —> 51% 24m gain
– every Bull starts “nowhere”. Imagine dismissing 2009 as “dead cat bounce” and saying this until 2014. pic.twitter.com/ztiNLIUd2e
— Thomas Lee (@fundstrat) October 17, 2019
A lot of eyes on this one as a bearish warning sign. Not out of the woods yet but $EUFN retakes the 200 dma and the RSI could be shifting to bullish ranges. Worth keeping an eye on! pic.twitter.com/deIlMCOlRz
— Dan Russo, CMT (@DanRusso_CMT) October 17, 2019
— Kathy Donnelly (@KGD_Investor) October 17, 2019
— David Zarling (@AdaptivCharts) October 17, 2019
— Gregory Krupinski (@G_krupins) October 17, 2019
When they say that sometimes gaps act as magnets I think this chart showing Netflix today after earnings is a nice visual pic.twitter.com/Id53GAT6uS
— Scheplick (@scheplick) October 17, 2019
Saturday, October 19th – Canadian Technician’s Day
Tuesday, October 22nd – New York Chapter Meeting Featuring Sam Stovall
Thursday, October 24th – Northern Ohio Chapter Meeting Featuring JC Parets, CMT
Saturday, October 26th – Trade Ideas Summit 2019
Monday, October 28th – United Kingdom Chapter Meeting featuring Ralph Acampora, CMT
You’re all caught up now. Thanks for reading!