Friday, November 22nd, 2019
Indices: US stocks ended the week on a positive note with the Dow Jones Industrial Average advancing 109 points or 0.33%. The S&P 500 and Nasdaq were higher by 0.22% and 0.16%, respectively. The Russell 2000 closed up 0.31%.
Sectors: Financials led, gaining 0.74%. Real Estate lagged for the second day in a row, falling 0.57%.
Commodities: Crude Oil futures fell by 1.11% to $57.93 per barrel. Gold futures slipped 0.14% $1,462 per ounce.
Currencies: The US Dollar Index rose 0.29%.
Interest Rates: The US 10-year Treasury yield was unchanged and is at 1.771%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
$SPX has now had 3 corrections since the 2009 low. There is now a clear break higher. Maybe the market reverses, but that is clearly the lower probability scenario. Get on board and map out appropriate stops. pic.twitter.com/O79o8Teyls
— Jim Denholm, CMT (@denholm_jim) November 22, 2019
Today’s Chart of the Day was shared on Twitter by Jim Denholm (@denholm_jim). It’s a weekly candlestick chart of the S&P 500 since the financial crisis. Some folks argue that this bull market has lasted over a decade and that it’s now getting long in the tooth. The problem with that notion is that markets can correct in two ways; through price, meaning a sharp decline, or through time. Jim points out that since 2009, the S&P 500 has experienced three corrections through time, where price went sideways for over 20 months. Also, two of those corrections we’re just a few basis points shy of being considered a bear market. The drawdown in 2011 was 19.39%, and the drawdown at the end of last year was 19.78%. One could argue that we’re actually emerging from a cyclical bear market within a secular bull market.
Quote of the Day
“Those who dare to fail miserably can achieve greatly.”
– John F. Kennedy (35th President of the United States)
Here’s Brian Shannon’s weekly stock market analysis video, where he recaps price action from the past week and lays out some charts to keep an eye on next week.
Starbucks May Be Bottoming After Painful Pullback – CNBC
Todd Gordon of Trading Analysis.com walks viewers through a bullish options trade on Starbucks ($SBUX).
DP Daily Diamonds – I’m Going to Disneyland – StockCharts.com
Erin Swenlin of StockCharts.com breaks down several charts from her latest scan, including; $DIS, $CGC, $TLRY, $PSXP, $SJW, and $SSW.
Jeff Hirsch shows that above-average year-to-date gains through November have historically been followed by further gains in the next month and year.
Where Do We (Investors) Stand – David Cox
Here’s a brief webinar from David Cox where he runs through several noteworthy technical developments.
Top 10 Tweets
Friday gains put most of us in a good mood, but a strong weekly finish could also signal healthy market momentum.
— Callie Cox (@callieabost) November 22, 2019
S&P 500 remains above short-term moving averages. pic.twitter.com/oTmkqiJuUL
— Andrew Thrasher, CMT (@AndrewThrasher) November 22, 2019
Stocks may experience a pullback here
But barring a significant decline next week, the NASDAQ Composite's monthly MACD histogram is about to turn positive for the first time in 12 months
— SentimenTrader (@sentimentrader) November 22, 2019
Weekly $SPX update: a mild pulback so far this week, as stocks seem to already be in holiday mode. Relative strength vs equal weight index $SPXEW in strong uptrend, suggesting this is still a market-cap bull. Have a great Thanksgiving! 🦃 pic.twitter.com/aqxsJMCscG
— Michael Turvey (@MikeTurvey_TDA) November 22, 2019
November 22, 1963 has some market parallels to 2019. The S&P 500 made a major cyclical low in 1962 and was in a bullish cyclical trend the day JFK died; that trend was in the context of a secular bullish trend (1950-1973). The strong uptrend resumed after the assassination. pic.twitter.com/v5V71GzoLk
— Chris Ciovacco (@CiovaccoCapital) November 22, 2019
— Alastair Williamson (@StockBoardAsset) November 22, 2019
Inflows into semi ETF have reached an extreme. pic.twitter.com/dVaq543IkO
— RenMac: Renaissance Macro Research (@RenMacLLC) November 22, 2019
$GOLD and bonds are still very correlated and this year has been very different than prior years: Gold has spent all year above its 200dma for the first time since 2011 and $TLT for the first time since 2014 and future equities weakness should only accelerate these trend changes pic.twitter.com/KDxfi4zjLI
— Adam Mancini (@AdamMancini4) November 22, 2019
Cool graphic by @LeutholdGroup showing $AAPL along with the other stocks in recent history that have reached a 4% weighting in the S&P 500 – and how long each managed to stay above that level. pic.twitter.com/yxCGPOjIlU
— Michael Santoli (@michaelsantoli) November 22, 2019
New truck design or falling channel resistance the cause for weakness so far today? $TSLA $SPY @MarketSmith @InvestorsBusinessDaily https://t.co/qpwNivaAGD #IBDinfluencer #IBDpartner pic.twitter.com/bbBc1Q49iB
— Chris Kimble (@KimbleCharting) November 22, 2019
You’re all caught up now. Thanks for reading!