Monday, December 2nd, 2019
Indices: US stocks had their worst day in nearly two months with the Dow Jones Industrial Average falling 268 points or 0.96%. The S&P 500 and Nasdaq closed lower by 0.86% and 1.12%, respectively. The Russell 2000 fell 1.04%.
Sectors: Consumer Staples led, inching higher by 0.23%. Real Estate lagged, falling 1.84%.
Commodities: Crude Oil futures moved higher by 1.43% to $55.96 per barrel. Gold futures slipped 0.24% to $1,469 per ounce.
Currencies: The US Dollar Index dropped 0.42%.
Interest Rates: The US 10-year Treasury yield moved higher to 1.822%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Saul Noyes (@SaulNoyes) December 2, 2019
Today’s Chart of the Day was shared on Twitter by Saul Noyes (@SaulNoyes). It’s a daily candlestick chart of the 20+ Year US Treasury Bond ETF, $TLT. The S&P 500 fell 0.86% today, marking the worst day for stocks since mid-October. To be fair, that stat really just speaks to the lack of volatility over the past few weeks. Saul points out that we didn’t see the typical “flight to safety” that one might expect on a day like today. Bonds were even weaker than stocks with $TLT falling 1.33%. Another safe-haven asset, Gold, was unable to catch a bid, slipping 0.24%. The “flight to safety” was even absent at the sector level, with defensive sectors like Real Estate lagging the rest of the market. We’re only talking about one day here, but, as Saul notes, this sort of price action begs the question: “where are they going?”
Quote of the Day
Technicals Check-In – LPL Financial Research
LPL Financial Research gives an update on the technicals of the stock market going into the final month of 2019.
Podcast with Neil Blalock, CMT – Chief Investment Officer & Owner of NJB Capital – Technical Analysis Radio
In this podcast, JC Parets interviews Neil Blalock, CIO
and owner of NJB Capital. They discuss how he uses technicals to trade and analyze commodities.
Volatility Contracts Across the Board – Andrew Thrasher
Andrew Thrasher shares his thoughts on the low volatility environment that we’ve seen over the past few weeks.
All ‘Bout That ‘Mo – SentimenTrader
Jason Goepfert of SentimenTrader argues that momentum will likely carry Stocks higher despite some short-term bearish signals.
A Better Than Average Decade – Bespoke
With one month to go in 2019, Bespoke compares the performance of the S&P 500 to its historical average across 1-year, 2-year, 5-year, 10-year, and 20-year time horizons.
Waiting for the right time to try TrendSpider? Now is your chance…
Live now, enjoy their biggest sale of the year!
Between 11/25 and 12/2, New Customers can save up to 40% on your TrendSpider plan and level up your trading in the new year. Save time and make smarter trade decisions with beautiful charts, dynamic backtesting, and multi-factor alerts—all with no coding required.
Top 10 Tweets
FWIW, $SPX gained 1.1% on the first day of trading in Dec. 2018 (best start since 2010), and we all know how that ended.
Moral of the story: don’t draw conclusions from just one stat.
— Callie Cox (@callieabost) December 2, 2019
$SPX December returns when 1st day is negative
— Jonathan Krinsky,CMT (@jkrinskypga) December 2, 2019
— Frank Cappelleri (@FrankCappelleri) December 2, 2019
SPX 4-year Presidential Election Composite. pic.twitter.com/Ck3mTDuE1v
— Nautilus Research (@NautilusCap) December 2, 2019
Technicals for the Nikkei & Japanese stocks are stronger than most believe while those for Asia ex Japan are weakening at a rapid clip. pic.twitter.com/gSMPpzdyi6
— Wolfe Daily Howl (@WolfeDailyHowl) December 2, 2019
Stocks underperformed bonds for 16 years, but the stock/bond ratio is now breaking out to new all-time-highs.
If the trend continues, it will be much more profitable to hold stocks rather than bonds in the years ahead. pic.twitter.com/1BENV29jOm
— Danny Merkel (@ChartingTrends) December 2, 2019
— Aaron (@ATMcharts) December 2, 2019
If there's going to be a further $GOLD rally, it needs leadership by $SILVER and silver miners specifically, and the setup developing looks good. Junior miners $SILJ broke out of a multi-year wedge in June, and is now showing healthy bull flagging above for a leg to 13 pic.twitter.com/2h2Kguk5zs
— Adam Mancini (@AdamMancini4) December 1, 2019
A cyclical bottom in Copper/Gold, if that’s what’s transpiring, bodes ill for U.S. Treasury bonds. Average sell-off in $UST10Y was 210bp (minimum 155bp), suggesting yield target of 3.60% (minimum 3.05%). Time to shed duration? H/T @topdowncharts pic.twitter.com/I4DbMHWw96
— Mark Ungewitter (@mark_ungewitter) December 2, 2019
The S&P 500, Dow, and Nasdaq are all red today.
But, one stock stands tall amid the carnage. It is an unlikely name. It's known for its stationary bikes people ride from home.
Peloton is at all-time highs and it's now up 43% from its IPO. It commands a $10 billion market cap. pic.twitter.com/HpJWQbkXyt
— Scheplick (@scheplick) December 2, 2019
You’re all caught up now. Thanks for reading!