Wednesday, November 6th, 2019
Indices: US stocks were little changed in today’s session with the Dow Jones Industrial Average closing completely flat. The S&P 500 moved just 0.07% and the Nasdaq slipped 0.29%. The Russell 2000 was the weakest of the major averages, falling 0.63%.
Sectors: Financials led for the second day in a row, gaining 0.51%. Energy lagged, falling 2.04%.
Commodities: Crude Oil futures moved lower by 1.57% to $56.34 per barrel. Gold futures rose 0.60% to $1,493 per ounce.
Currencies: The US Dollar Index was flat.
Interest Rates: The US 10-year Treasury yield moved lower to 1.822%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Charts come in super helpful once the uptrends end and the narratives turn to noise. pic.twitter.com/BwMvAGexpP
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) November 6, 2019
Today’s Chart of the Day was shared on Twitter by Arun Chopra (@FusionptCapital). The chart shows two weekly candlestick charts, the S&P 500 index (top) and Bitcoin (bottom). Arun points out that both Bitcoin and the S&P 500 bottomed at their respective 200-week moving averages when they were selling-off in 2018. Arun explains: “Charts come in super helpful once the uptrends end and the narratives turn to noise.” Arun is describing one of the biggest benefits of using Technical Analysis. It allows you to tune out the noise and focus on what matters, which is price. For example, when the S&P 500 was selling-off in the final three months of last year, it would’ve served you well to use things like the 50 and 200-week moving averages as a guide rather than basing your decisions on the panic seen in the media.
Quote of The Day
“There’s no such thing as fundamentals, only narratives about fundamentals.”
– David Tuckett (Behavioral Economist)
Categorizing and Identifying the Two Primary Types of Market Risks – Andrew Trasher
Andrew Thrasher breaks down the differences between sentiment risks and structural market risks.
Options Traders Duitch Their Hedges – Dana Lyons
Dana Lyons points out that the Put/Call Ratio just hit its lowest level in over a year. He explains what this reading signals about investor sentiment.
US Financials Hit All-Time Highs in Total Return – All Star Charts
JC Parets takes a look at the Financial sector ($XLF) as it attempts to break out to new highs.
Emerging Performance of Global Markets – StockCharts.com
David Keller examines the performance of US equities ($SPX) versus global equities ($ACWI.)
Small-Cap Value May be Breaking Out, BofA Merrill’s Suttmeier Says – Bloomberg
In this clip from Bloomberg, Steve Suttmeier of Bank of America shares his bullish outlook on Small-caps and Semiconductor stocks.
Top 10 Tweets
— Market Musings (@AndysCycles) November 6, 2019
Tightest three-day range in the S&P 500 since August 2018
[That's (high-low)/previous close, 3D sum= 1.125%pts] pic.twitter.com/WlhFq2NvMF
— Luke Kawa (@LJKawa) November 6, 2019
$SPX longest streaks with intraday range < 1%:
23: 3/28 – 4/30
16: 6/26 – 7/18
16: 10/16 – now
61: 9/26 – 11/30
64: 12/15/16 – 3/20/17#markets
— Frank Cappelleri (@FrankCappelleri) November 6, 2019
— Nick Marino (@AlphaEyeCharts) November 6, 2019
The new high parade continues with fresh new highs in $SPY, $XLK, $XLF, $XLI and $XLB. $XLV hit a new high for 2019, but remains just shy of a 52-week high. $XLC and $XLY are with 2% of new highs. Plenty of uptrends out there. pic.twitter.com/OdfnQau4By
— Arthur Hill, CMT (@ArthurHill) November 6, 2019
— Tarek I. Saab (@FibLines) November 6, 2019
— Christian Fromhertz (@cfromhertz) November 6, 2019
We see further room for optimism in EM. Chart is basing and gaining momentum while EEM ETF inflows are far from extreme. pic.twitter.com/mxB0JFBe5C
— Renaissance Macro (@RenMacLLC) November 6, 2019
Greece (updated from July 12).
Looking for signs of animal spirits in Europe? The real party starts when Greece shows up.
As luck would have it, no one owns any $GREK after the second largest outflow in history.
Giant 2-year base now forming a tight pivot – monitor for launch. pic.twitter.com/NAWprKiSjG
— Macro Charts (@MacroCharts) November 6, 2019
Member the inverted curve?
It lasted three days.
Good times. pic.twitter.com/jd0qonPdmY
— Eddy Elfenbein (@EddyElfenbein) November 6, 2019
Wednesday, November, 20th – New York Chapter Meeting featuring Gina Martin Adams, CMT, CFA
Thursday, November, 21st – Washington DC/Baltimore Chapter Meeting featuring Katie Stockton, CMT
You’re all caught up now. Thanks for reading!