Wednesday, March 27th, 2019
Indices: US stocks closed lower, with the Dow Jones Industrial Average slipping 32 points or 0.13%. The S&P 500 underperformed the rest of the major indices, falling 0.46%.
Sectors: Industrials were the only sector to close positive, with a gain of 0.11%. Healthcare was the laggard, falling 0.83%.
Commodities: WTI Crude Oil futures fell 0.89% to close at $59.29 per barrel. Gold futures fell 0.35% to settle at $1,310 per ounce.
Currencies: The US Dollar Index gained 0.22%.
Interest Rates: The US 10-year Treasury yield continued to fall to its lowest level since 2017 at 2.381%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared on Twitter by Liz Ann Sonders (@LizAnnSonders). There’s been an overwhelming amount of chatter about the yield curve ever since the front end inverted last Friday, but we think this chart offers a valuable perspective. It shows today’s US Treasury yield curve in pink, with the yield curve from the last time it inverted in 2007 in blue. The big difference between the two is that in 2007, the long end of the curve (30yr yields) was much lower than the front end. It’s also important to note that today’s yield curve isn’t even fully inverted yet. There are many out there citing the recent yield curve inversion as a reason to get bearish, but for now it might be best to keep an eye on the long end of the curve.
Quote of The Day
“A bank is a place that will lend you money if you can prove you don’t need it ”
– Bob Hope (Comedian)
A Fibonacci Trading Strategy Explained – Steve Burns
This article is a great introduction to Fibonacci and how it’s used in technical analysis. The author covers everything from Fibonacci retracements to Fibonacci Fans.
Mystery Chart 2-27-19 – Tom Bruni – All Star Charts
Take a look at this week’s “Mystery Chart” from All Star Charts. Technician, Tom Bruni does this exercise weekly and emphasizes that the objective is not to simply guess the chart symbol but instead, ask yourself how you’d trade the chart (buy, sell, do nothing).
Crude Oil, Energy Lead Wall Street Higher – Tom Bowley – StockCharts.com
Tom Bowley of StockCharts.com gives his market outlook here. He explains that the Crude oil seems to have led the market higher, so far in 2019, but warns that it’s testing a key Fibonacci retracement level.
Is DJIA-Nasdaq Monthly Divergence Bearish or Bullish? – Jeff Hirsch
Here’s a short note from Jeff Hirsch that takes a look at the divergence that’s forming between the Dow Jones and the Nasdaq. He points out that as of yesterdays close, the Dow was down 1.00% in March while the Nasdaq is up 2.11%.
Top Technician Says These High Yielding Stocks are About to Breakout – CNBC
Chris Verrone of Strategas Research made an appearance on CNBC today. He discussed the carnage in Treasury yields and offers three high dividend yielding stocks that have attractive chart setups.
Top 10 Tweets
Decline earlier this month was 3.36%. Similar decline here would take SPX to 2764. Move below that would indicate rally losing some upside momentum; holding above it would indicate the post-Breakaway Momentum upside momentum not yet dissipating. #AnotherShortTermForkInRoad.
— Walter Deemer (@WalterDeemer) March 27, 2019
— Brian Shannon, CMT (@alphatrends) March 27, 2019
— Willie Delwiche (@WillieDelwiche) March 27, 2019
An interesting chart from @DRBCurtis, looking at how implied volatility in Treasuries has been rising much faster than vol in stocks. Makes sense – the volatility in bonds has been driven by the Fed's sudden dovish shift, sending yields lower and giving support to equities. pic.twitter.com/yuFi3fXyMI
— Lisa Abramowicz (@lisaabramowicz1) March 27, 2019
If this was a stock, it would be one ugly chart. pic.twitter.com/AvAgWFPAhE
— Bespoke (@bespokeinvest) March 27, 2019
— Chris Kimble (@KimbleCharting) March 27, 2019
Traders have moved into VIX call options and volatility ETFs. In the sense that extreme positions tend to lead to moves in their direction, this is the smart money. pic.twitter.com/JDDKvFknLw
— SentimenTrader (@sentimentrader) March 27, 2019
— Arun S. Chopra CFA CMT (@FusionptCapital) March 16, 2019
Updated chart here (see further below) w/ #Platinum Rel. to #Palladium (L) & #Palladium (R). Notice the pink circles in 2001 & the pink circles now. The heads up here is #Palladium was down -6% today. Weekly MACD reading for palladium hooking from its greatest o/b ever. pic.twitter.com/iOdHKLPgo1
— da Chart Life (@daChartLife) March 27, 2019
There have been bearish momentum divergences in Palladium since October.
Prices rallied 500 points, or 45% higher from the first one.
Bearish divergences need price confirmation, but when you get it…look out. pic.twitter.com/SCxlYCaoiy
— Tom Bruni, CMT (@BruniCharting) March 27, 2019