Tuesday, December 10th, 2019
Indices: US stocks were slightly lower in today’s session, with the Dow Jones Industrial Average slipping 28 points or 0.10%. The S&P 500 and Nasdaq closed lower by just 0.11% and 0.07%, respectively. The Russell 2000 was the strongest of the major averages, managing a small gain of 0.13%.
Sectors: Health Care led, inching higher by 0.22%. Real Estate lagged, falling 0.70%.
Commodities: Crude Oil futures rose 0.51% to $59.21 per barrel. Gold futures inched higher by 0.22% to $1,468 per ounce.
Currencies: The US Dollar Index slipped 0.13%.
Interest Rates: The US 10-year Treasury moved higher to 1.836%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Peter Alexander, CMT (@relativetrend) December 10, 2019
Today’s Chart of the Day was shared on Twitter by Peter Alexander (@RelativeTrend). It’s a ratio chart of the Consumer Discretionary ETF, $XLY, relative to the Consumer Staples ETF, $XLP. This ratio is used to gauge the risk appetite of the broader market. When the line is going up, it means the Consumer Discretionary sector is outperforming the Consumer Staples sector and vice versa. Peter points out that the ratio isn’t sending a very bullish message to the broader market right now. After making a series of lower highs over the past year, the ratio is currently on the verge of breaking down and potentially making a lower low. It’s important to note that Amazon represents over 20% of $XLY. The stock’s lackluster performance, as of late, is likely weighing on $XLY. However, the ratio looks even worse when you look at the equal-weight version of it using the ETFs, $RCD/$RHS. This is one technological development right now that doesn’t favor the bull case for stocks.
Quote of the Day
S&P 500 to Gold Ratio at Important Level – Fibonacci.com
Tarek Saab of Fibonacci.com examines the ratio charts of Stocks vs. Gold to see which asset class will outperform.
Make Plans for Wall Street’s only “Free Lunch” – Almanac Trader
Seasonality expert, Jeff Hirsch discusses the only “Free Lunch” on Wall Street. This is a phenomenon where stocks that have been beaten down due to year-end tax-loss selling tend to catch a bid during the first few weeks of the new year.
Tesla is a ‘Faith Stock’ According to Trader – CNBC
JC O’Hara of MKM Partners gives his technical take on the highly contested electric car maker, Tesla ($TSLA).
Interview with Jonathan Krinsky, CMT – The Final Bar
In this episode of The Final Bar, Host David Keller chats with Greg Schnell about using Keltner Channels and Jonathan Krinsky about the current market environment we’re in.
Asian Interest – Peter Brandt
Peter Brandt takes a look at the charts of two major Asian Equity indices, the Nikkei 225 and China’s A50 index.
Top 10 Tweets
Good morning… and 43 days without a 1% decline in $SPX.
This marks the longest streak of the year (the last streak topped the market in July), and one of the longest in the last decade.
Not likely to go much longer – but as always, need to wait for the market to say "when". pic.twitter.com/7B7zpmLyNy
— Macro Charts (@MacroCharts) December 10, 2019
Three major sectors are on the verge of breaking out from
2-year ranges. This would reinforce the start of a new cyclical leg higher, similar to 2012 and 2016. Charts via @verrone_chris @Todd_Sohn pic.twitter.com/nCRHaX4fpX
— Strategas (@StrategasRP) December 10, 2019
— Pat Hennessy, CMT (@pat_hennessy) December 10, 2019
The SKEW Index, which looks at the risk of a black swan event in equities over the next 30 days, jumped to the highest level since in more than a year.
— SentimenTrader (@sentimentrader) December 10, 2019
Inflation Protected $TIP vs. US Treasuries $GOVT : recently broke through a diagonal downtrend line. since the Fed began expanding its balance sheet in September, rates have climbed and inflation indicators are starting to show some life..kinda.. $RYE vs. $RYU is yet to confirm pic.twitter.com/CbLLO2dV7X
— Shane C. Murphy (@murphycharts) December 10, 2019
Junk-bond yields have fallen to the lowest in more than two years. pic.twitter.com/k0eCje5jeb
— Lisa Abramowicz (@lisaabramowicz1) December 10, 2019
$EEM When it broke DTL shown, a few $$ mgrs said "time to get long" & I preferred wait-n-see. Market has 3 phases: up, down, sideways. This is sideways movement.
(BTW, this is why I focus on horizontal levels to read charts. I'll believe an uptrend here when we see 45.) pic.twitter.com/7fBJZOBLXW
— Merry Tex-mas 🎄 (@theycallmetex) December 10, 2019
Another day, another all-time high in Palladium. pic.twitter.com/TPcpQvC56p
— Tom Bruni, CMT (@BruniCharting) December 10, 2019
— Scott Redler (@RedDogT3) December 10, 2019
When I started in this business … I could have never imagined this would be a real headline.
*JAPAN 10-YEAR BOND YIELD RISES TO 0% FOR FIRST TIME SINCE MARCH
(Sept was the all-time low) pic.twitter.com/S4YoMTrP4H
— Jim Bianco (@biancoresearch) December 10, 2019
You’re all caught up now. Thanks for reading!