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Today’s Summary
Monday, December 9th, 2019
Indices: US stocks closed lower in today’s session with the Dow Jones Industrial Average falling 105 points or 0.38%. The S&P 500 and Nasdaq fell 0.32% and 0.40%, respectively. The Russell 2000 was the strongest of the major indices but still slipped 0.26%.
Sectors: Real Estate led, inching higher by 0.13%. Health Care lagged, falling 0.70%.
Commodities: Crude Oil futures slipped 0.30% to $59.02 per barrel. Gold futures were unchanged and continue to trade at $1,465 per ounce.
Currencies: The US Dollar Index was flat, changing just 0.03%.
Interest Rates: The US 10-year Treasury fell to 1.819%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
copper with some sustained relative strength against gold picking up pic.twitter.com/1KGzGabZXk
— Oliver Renick (@OJRenick) December 9, 2019
Today’s Chart of the Day was shared on Twitter by Oliver Renick of TD Ameritrade Network (@OJRenick). It’s a line chart of Copper futures over the past two years along with the Copper/Gold ratio in the bottom pane of the chart. Oliver points out that Copper has recently been gaining strength on both an absolute basis and relative to Gold. The Copper/Gold ratio has historically been highly correlated to the 10-year US Treasury yield. Therefore, if Copper continues to outperform Gold, then we’ll likely be in an environment where Interest Rates are also moving higher.
Quote of the Day
“What’s the subject of life – to get rich? All of those fellows out there getting rich could be dancing around the real subject of life.”
Top Links
A Bull Market Fueled By A Lack of Trust – Omaha Charts
Trent Smalley explains that sentiment is far from euphoric right now and why that’s bullish for stocks.
The Next Big Move – Joe Fahmy
In this short video, Joe Fahmy breaks down the charts of the major US indices.
S&P 500 Leading and Lagging Industry Groups – Bespoke
Bespoke shows which industry groups have been leading/lagging the broader market in the short-term.
Are Bank Stocks Sending Bullish Message To Investors? – Kimble Charting Solutions
Chris Kimble points out that the Bank ETF, $KBE, is on the verge of a meaningful breakout.
My Conversation with Annie Duke – Technical Analysis Radio
Here’s a great podcast with JC Parets and professional poker player Annie Duke. They discuss some of the cognitive biases involved in decision making.
Top 10 Tweets
Interesting to observe the interplay in my #Twitter feed b/w the bears (mostly economists/macro guys) and bulls (mostly technicians)
Charts communicate everything you need to know. Keep it simple. Don't fight the tape. $SPY $SPX #spx
PS Call me when we break rising support. pic.twitter.com/mMlPV0Vmpy
— Tarek I. Saab (@FibLines) December 9, 2019
Equity funds have suffered a massive outflow in 2019. So "massive" it accounts for
*squints*
about 1.3% of total assets.
Now 1988, that was impressive. pic.twitter.com/BjV4ysAyHf
— SentimenTrader (@sentimentrader) December 9, 2019
Is Pharma's overbought condition bearish? We don't think so. pic.twitter.com/Kam2HcLLld
— RenMac: Renaissance Macro Research (@RenMacLLC) December 9, 2019
The $VIX went through a wild ride this past session. Looks like there is far more uncertainty under the surface than what the SPX itself is showing pic.twitter.com/zDiCZMc12q
— John Kicklighter (@JohnKicklighter) December 9, 2019
With a few weeks to go in 2019, bonds having their best year since 2002… pic.twitter.com/CeBzRaCdRv
— Charlie Bilello (@charliebilello) December 9, 2019
The forest, not the trees, for the "bonds" asset class.
I think you probably need to see a "bear market" here first, in order to see a "bear market" there second, if you get my point. pic.twitter.com/TtAVj1Pcyh
— Steve Deppe, CMT (@SJD10304) December 9, 2019
Is reversal in breakeven inflation rate (proxy $TIP / $IEF ) confirming cyclical bottom in 10-year UST yield? pic.twitter.com/mst8onlvfA
— Mark Ungewitter (@mark_ungewitter) December 9, 2019
Silver pic.twitter.com/4Eg5nit09A
— Dow (@mark_dow) December 9, 2019
Coffee still RS leader (SB then S next on the board) but maybe time for all ags to come to life… pic.twitter.com/YvIhXCqDKZ
— Linda Raschke (@LindaRaschke) December 9, 2019
RIP Volcker , the man who stopped inflation and started the bond boom pic.twitter.com/89Sa0GXTxh
— Kai (@MacroTechnicals) December 9, 2019
You’re all caught up now. Thanks for reading!