Monday, April 1st, 2019
Indices: US stocks began the new quarter, month, and week today on a positive note, with the Dow Jones Industrial Average closing up 329 points or 1.27%.
Stocks: The ride-sharing company Lyft ($LYFT) continued to sink on its second day as a publicly traded company. Shares fell 11.85% today to close at $69.01, below its $72 IPO price.
Sectors: Financials led with a gain of 2.45% while Utilities lagged falling 0.69%.
Commodities: WTI Crude Oil futures rose 0.5% to close at $60.46 per barrel. Gold futures were down by 0.3% to settle at $1,293 per ounce.
Currencies: The US Dollar Index was relatively flat, changing just 0.07%.
Interest Rates: The US 10-year Treasury yield moved higher to 2.503%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared in a note from Bespoke this morning. It’s a histogram of the cumulative A/D readings for each quarter since 1990. The cumulative Advance/Decline or A/D Line is a breadth indicator that plots the difference between the number of advancing and declining stocks. Bespoke points out that this was the strongest quarter going back nearly 20 years! It would be concerning if the market was rallying and breadth was deteriorating, but it’s not. This bullish breadth reading helps to confirm that the primary trend is up.
Quote of The Day
“If you don’t follow the stock market, you are missing some amazing drama.”
-Mark Cuban, (American Businessman)
Seeking Strength in Safe Haven Staples – The Chart Report
One key theme that we’ve been focusing on at The Chart Report is the relative outperformance from some of the more defensive sectors of the market. In this piece, we offer two stocks in these sectors that we think will benefit if this trend continues.
Big First Quarter Gains Undoubtedly Bullish – Jeff Hirsch
Seasonality expert, Jeff Hirsch points out the unusually strong quarter stocks had to start 2019. According to his data, this was the 26th best quarter since 1930, and the best quarter since 1998.
AT&T Makes a Break for It – Arthur Hill – StockCharts.com
In this article, Arthur Hill explains why the chart of AT&T ($T) is poised to breakout here. He offers tells traders to keep an eye on the 50-day moving average and offers some specific levels of interest.
How Baseball Made Me a Better Investor – All Star Charts
In this quick video, J.C. Parets and Sean McLaughlin discuss some of the parallels between Baseball and investing.
Momentum Monday – America is Hungry – Howard Lindzon
Howard Lindzon is always looking for the hottest trends in markets. This week, in his weekly “Momentum Monday” video, he highlights the recent strength he’s noticing from large-cap restaurant stocks like McDonald’s, Chipotle and Starbucks.
Top 10 Tweets
The DJ Industrial Average (26,170.05) is poised to break above its near-term resistance at 26,241.42. The DJ Transportation Average (10,591.91) is also poised to break above near-term resistance at 10, 679.21). These are very encouraging signs.
— Ralph Acampora CMT (@Ralph_Acampora) April 1, 2019
The start-of-the-quarter charge for risk assets has earned a moderate wedge breakout for the Dow: pic.twitter.com/YXx9IPy9WQ
— John Kicklighter (@JohnKicklighter) April 1, 2019
— Katie Stockton, CMT (@StocktonKatie) April 1, 2019
With such ecoparanoia before and surrounding yield inversion, good data has some very good implications for markets, namely lifting the $IYT and $IWM closer into line $SPY $QQQ after substantial underperformance in March. Both are now beating tech over past week: pic.twitter.com/CE8kBSh3zA
— Oliver Renick (@OJRenick) April 1, 2019
Small-cap weakness versus large-caps being confirmed by industry group relative strength trends – Small/large relative strength leadership ratio at lowest level since 2014. pic.twitter.com/katrWBg5a1
— Willie Delwiche (@WillieDelwiche) April 1, 2019
Golden Crosses 1927 to April 2019. 49 in total with an average 1 year return of 8.75%. Full stats at end of table. Golden Crosses are unusual in bear markets over the past few decades. Which one will make April Fools of us in a year? The Golden Cross or the Yield Curve? pic.twitter.com/BSjvlhVdJG
— Damon Race, CMT (@kalibercap) April 1, 2019
— Adam Tooze (@adam_tooze) April 1, 2019
The copper to gold ratio moves to a new high in 2019, further erasing the threat of a recession in 2019.
Historically this ratio trending higher has pulled rates higher along with it.
Time for the 10-yr to move higher? pic.twitter.com/RWvRZISyd6
— Ryan Detrick, CMT (@RyanDetrick) April 1, 2019
— Dow (@mark_dow) April 1, 2019
— Charlie Bilello (@charliebilello) April 1, 2019