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Today’s Summary
Monday, November 11th, 2019
Indices: US stocks were slightly lower in today’s quiet session. The Dow Jones Industrial Average was more or less flat, changing just 10 points or 0.04%. The S&P 500 and Nasdaq fell 0.20% and 0.13%, respectively. The Russell 2000 was the weakest of the major averages, slipping 0.26%.
Sectors: Real Estate led, gaining 0.19%. Utilities lagged for the third straight session falling 0.62%.
Commodities: Crude Oil moved lower by 0.66% to $56.83 per barrel. Gold futures slipped 0.38% to $1,457 per ounce.
Currencies: The US Dollar Index fell 0.14%.
Interest Rates: The US 10-year Treasury yield was unchanged.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Comment: value vs. growth. It’s not uncommon for value to beat growth in early innings of a #CyclicalBullMarket. Too soon to abandon growth, by our reckoning. $IVE $IVW $SPX pic.twitter.com/yVmCLB817S
— Mark Ungewitter (@mark_ungewitter) November 11, 2019
Today’s Chart of the Day was shared on Twitter by Mark Ungewitter (@mark_ungewitter). It’s a chart of the S&P 500 over the past nine years. In the bottom pane is a ratio chart of value vs. growth ($IVE/$IVW) with blue boxes highlighting periods where value outperformed growth. Value has been outperforming growth for the past couple of months. There’s a common misconception out there that growth needs to outperform value for the broader market to move higher. However, Mark points out that it’s perfectly normal to see the broader market move higher during periods in which value is outperforming growth, especially at the start of a cyclical bull market.
Quote of The Day
“There are two ways to invest: you can predict or you can react.”
– Bruce Berkowitz (Hedge Fund Manager)
Top Links
Sectors and Groups to Watch – The Final Bar
Michele Schneider and David Keller discuss the most important sectors and industry groups to watch right now.
European Financials and Risk Appetite – All Star Charts
Tom Bruni of All Star Charts shares his thoughts on the recent strength in European Financials and why it’s bullish for Equities as a whole.
2019 YTD Country Stock Market Performance – Bespoke
Bespoke breaks down the YTD performance of global equity markets. They found that the average country that they track is currently up double digits in 2019 (+10.8%.)
The Long-Term Message From Transportation Stocks – Ciovacco Capital Management
Chris Ciovacco examines how stocks and bonds tend to perform after the Dow Jones Transportation Average breaks out from significant resistance.
How Much Higher Can Yields Go? – Forbes
Technical Analyst and Forbes Contributor, Tom Aspray discusses his outlook for US Treasury Yields.
Top 10 Tweets
$SPX is technically overbought, but strong momentum isn't a bad thing! It's happened 107 times over the last 10 years (vs 46 oversold) and 3 months later 69% probability of gain with 1.4% avg gain. pic.twitter.com/4O25tWI0pX
— Optuma (@Optuma) November 11, 2019
Overbought conditions resolve themselves thru price or time (or both). We're believers this one will result in a pause, then resumption of trend. pic.twitter.com/XP4mEuSX3h
— Renaissance Macro (@RenMacLLC) November 11, 2019
The Price Momentum Oscillator (PMO) was invented by Carl Swenlin
Prior to the 2000's, the signal was pretty erratic, but since the turn of the century, it's assisted investors in avoiding catastrophic crashes
This month, however, it triggered a long-term buy signal on the $SPX pic.twitter.com/NlPL5XYFAL
— Adam D. Koos, CFP®, CMT (@AdamKoos) November 11, 2019
BA goosing Dow. pic.twitter.com/Hm6Sn9jMzj
— Linda Raschke (@LindaRaschke) November 11, 2019
$SMH, $S5SSEQ — Semis short-term overbought? pic.twitter.com/jVbF25Dt0Z
— Nautilus Research (@NautilusCap) November 11, 2019
Crude $OIL looks set for another leg higher. For the past week or so its been going sideways to form a very nice bull flag. If this breaks out, it would target $59 at least ($60.50 above) bringing oil back to that level for the first time since after the Saudi drone strikes pic.twitter.com/8KWq7JSBJy
— Adam Mancini (@AdamMancini4) November 11, 2019
Treasury vol is the only vol above its one-year average.
FX vol and VIX > 1 standard deviation below their one-year averages. pic.twitter.com/BeCiZQtGVn
— Luke Kawa (@LJKawa) November 11, 2019
The biggest 20+ year Treasury ETF saw an unprecedented one-week withdrawal last week, of $1.2 billion. pic.twitter.com/MKMZfGOaJs
— Lisa Abramowicz (@lisaabramowicz1) November 11, 2019
Copper relative to gold is near past major lows.
This has coincided with major lows in the 10-year yield. pic.twitter.com/tjJOLPHbEu
— Ryan Detrick, CMT (@RyanDetrick) November 11, 2019
So what is going on with $GOLD?
Let me share some of my observations and opinion,
THREADGold is catching some breath after great run during this year. The yellow metal fell 3.7% this week, the most since November 2016. /1 pic.twitter.com/V0ZJ1NhfXS
— Sebastian Sienkiewicz (@Amdalleq) November 11, 2019
Upcoming Events
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!