Thursday, November 21st, 2019
Indices: US stocks were slightly lower in today’s session with the Dow Jones Industrial Average slipping 55 points or 0.20%. The S&P 500 inched down 0.16% and the Nasdaq was off by 0.24%. The Russell 2000 was the weakest of the major averages, falling 0.48%.
Sectors: Energy led for the second day in a row, gaining 1.64%. Real Estate lagged, falling 1.34%.
Commodities: Crude Oil futures moved higher by 2.68% to $58.58 per barrel. Gold futures fell 0.72% $1,464 per ounce.
Currencies: The US Dollar Index was more or less flat, changing just 0.04%.
Interest Rates: The US 10-year Treasury yield rose to 1.772%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— EQT Option (@eqtoption) November 21, 2019
Today’s Chart of the Day was shared on Twitter by @eqtoption. It’s a seasonality chart that compiles data from the past 34 years to show how the S&P 500 tends to perform throughout the year. As you can see, the S&P 500 tends to pause in mid-November before rallying into the end of the year. The chart does a good job illustrating the common market aphorism: “Sell in May and Go Away.” With the worst six months (May-October) behind us, investors can look forward to bullish seasonal tailwinds over the next six months. Seasonality isn’t a perfect science. However, it can help guide your decision making and increase your odds of success in the long run. For more on this, check out this piece by JC Parets titled, “Remember To Buy In November!”
Quote of the Day
“News is always best at tops and worst at bottoms, and the reaction to the news is always more important than the news itself.”
– Todd Harrison (Fund Manager)
The Implications of Low Volatility with Todd Sohn of Strategas –The Final Bar
Todd Sohn of Strategas shares his thoughts on the low volatility environment that we’re currently in and how it factors into his long-term outlook for Equities.
Bitcoin Price – This is the Only Chart That Matters – Fibonacci.com
In this video, Tarek Saab examines a long-term chart of Bitcoin. He uses Fibonacci analysis, Elliot Wave and moving averages to justify why he thinks Bitcoin will move higher.
Junk Bonds About to Send Stocks a Bearish Message? – Kimble Charting Solutions
Chris Kimble explains that the Junk Bond ETF, $JNK, is on the verge of breaking down, and why that would be bearish for US Equities in the short-term.
Bulls No Longer in Charge – Bespoke
In this note, Bespoke breaks down the results of the latest AAII sentiment survey. They argue that the bull-bear spread is still in favor of the bulls despite this week’s drop in bullish sentiment.
Stock Market Swing Trade Ideas – The Trade Risk
Evan Medeiros takes a look at some of the most attractive chart setups within the IBD 50 list including; $INCY, $BZUN, $KL, $PLAN, and $EXAS.
Top 10 Tweets
Tough to be too bearish on $SPX when RSI is near the strongest levels of the past few years. Look for a continuation higher with some minor pauses along the way. Forget #china and #tariffs and focus on data. pic.twitter.com/5LrgGP3AAd
— Jim Denholm, CMT (@denholm_jim) November 21, 2019
Yesterday marked the 11th anniversary of the end of the "panic phase" of the financial crisis.
1. initial selloff (blue) 224 days, -16.80%.
2. panic phase (red), 59 days, -42.15%.
3. retest phase (green), 72 days, -10.09% pic.twitter.com/mXohZ0EHVB
— Eddy Elfenbein (@EddyElfenbein) November 21, 2019
All you need to know about the 2020 election. pic.twitter.com/Eddw5AfUZA
— Brian Lund (@bclund) November 21, 2019
— Mark Ungewitter (@mark_ungewitter) November 21, 2019
— Mark Arbeter, CMT (@MarkArbeter) November 21, 2019
Bonds $TLT would need to a) break to a new swing high above 141.50, and b) break above trendline resistance from the Aug and Oct highs. Until then, this is just a bounce within a downtrend! pic.twitter.com/OGuLq2gUll
— David Keller, CMT (@DKellerCMT) November 21, 2019
— jeroen blokland (@jsblokland) November 21, 2019
— Dana Lyons (@JLyonsFundMgmt) November 21, 2019
— Todd Harrison (@todd_harrison) November 21, 2019
You’re all caught up now. Thanks for reading!