Thursday, November 7th, 2019
Indices: US stocks closed higher in today’s session with the Dow Jones Industrial Average advancing 182 points or 0.66%. Both the Nasdaq and Russell 2000 gained 0.28%, while The S&P 500 gained 0.27%.
Sectors: Energy led, gaining 1.50%. Utilities lagged, falling 1.35%.
Commodities: Crude Oil futures moved higher by 1.37% to $57.11 per barrel. Gold futures dropped 1.77% to $1,467 per ounce.
Currencies: The US Dollar Index rose 0.18%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.928%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Seeing a lot of tweets referencing the high CNN Fear & Greed Index Value. What they're not saying is… pic.twitter.com/Pkm2lGDIyg
— David Settle, CMT (@davidsettle42) November 7, 2019
Today’s Chart of the Day was shared on Twitter by David Settle (@davidsettle). It is a chart of the CNN Fear & Greed Index going back to late 2016. In recent days, this sentiment index has shot up to levels of “extreme greed,” sparking concerns that the top is near. David points out that the index doesn’t have the best track record at predicting tops. The CNN Fear & Greed Index seems to be one of the only sentiment indicators out there signaling euphoria. Many other sentiment surveys and indicators show extreme fear and pessimism. When you look at how they calculate the CNN Fear & Greed Index, it’s a somewhat complicated formula that takes several factors into account. Market sentiment is always tough to quantify, but perhaps a simpler approach is best. Some argue that anecdotal observations are a good way to gauge sentiment. In other words, looking around your everyday world and asking yourself: are market participants showing signs of euphoria right now?
Quote of The Day
“Learning is the one thing the mind never exhausts, never fears, and never regrets.”
– Leonardo Da Vinci (Artist, Inventor, Scientist)
The Lifeblood of Bull Markets: Sector Rotation – The Chart Report
In this report, we take a look at the relative weakness from the defensive sectors of the market including Utilities, REITs and Consumer Staples.
New Highs for the Transports of Today and Yesteryear – Bespoke
In this note, Bespoke points out that the Dow Transports and Semiconductor Index are both at all-time highs, confirming the primary trend of the broader market.
We Auto (Oughta) Pay Attention to this Subsector – All Star Charts
Tom Bruni of All Star Charts breaks down some of the opportunities that are brewing within the Dow Jones Auto Index.
Seasonally Strong Period, But… – Almanac Trader
Jeff Hirsch explains that the middle of November tends to be weak despite bullish seasonal tailwinds going into the end of the year.
This Industrials Stock Could Be the Best Way to Ride Sector Surge, Trader Says – CNBC
Todd Gordon of TradingAnalysis.com discusses the rotation into the Industrial sector and lays out a bullish options trade on one stock within the sector breaking out to new highs, John Deere ($DE).
Top 10 Tweets
Dow Theory: The DJ Transportation Average made its closing high back on September 14, 2018 at 11,750.84. Yesterday it broke out after 9 months of consolidation. This is very encouraging. A close above this peak will reconfirm a primary bull market a la Dow Theory.
— Ralph Acampora CMT (@Ralph_Acampora) November 7, 2019
— Strategas (@StrategasRP) November 7, 2019
S&P Industrials All Time High (First Time in 1-year). pic.twitter.com/nJLQXW2FOm
— Nautilus Research (@NautilusCap) November 7, 2019
So it's agreed then, the industrials are the must-have portfolio accessory for fall?
— Michael Santoli (@michaelsantoli) November 7, 2019
I’ve heard three times this morning on @CNBC that because interest rates bumped up 50 bps, curve steepened, and #XLF has followed financials are now overbought. Step back, look at some long-term maps, and realize a breakout is only possibly just beginning. ‘08 highs are next. pic.twitter.com/6j92ljKJgj
— Todd Gordon (@toddgordontrade) November 7, 2019
— Sam McCallum (@honeystocks1) November 7, 2019
Seeing a lot talk about where volatility went and this market is fake. Chart below shows the $VIX having 3 big spikes in 2016 (earnings bear mkt, Brexit, & Election). Look what it did in 2017. Could the same happen again in 2020? Lines up with the breadth thrust and grind. pic.twitter.com/WEe4seOemg
— Neil Blalock, CMT (@NeilBlalock) November 7, 2019
10-year Treasury yields are moving steadily higher, to the highest level since the end of July (but still way below where they were a year ago.) pic.twitter.com/I2JXsFWHcw
— Lisa Abramowicz (@lisaabramowicz1) November 7, 2019
intraday breakage of fall lows for 10-yr and gold pic.twitter.com/FhyD1JDtFQ
— Oliver Renick (@OJRenick) November 7, 2019
— Brian Shannon, CMT (@alphatrends) November 7, 2019
Tuesday, November 19th – Benzinga Global Fintech Awards
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!