Today’s Summary
Tuesday, March 5th, 2019
US stocks fell slightly in today’s session, with the Dow Jones Industrial Average closing down just 13 points or 0.05%. The Dow Transportation Average booked its eighth consecutive loss today, the longest losing streak for the index since 2011.
As for the individual sectors of the S&P 500, the Communications sector was the leader, advancing 0.63%. On the other hand, Industrials were the laggard, falling 0.64%.
Crude Oil was relatively flat, slipping just 3 cents to settle $56.56 per barrel. Gold was also unchanged and is trading around $1,288 per ounce, the same price it began the year at.
Here are some of the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s chart of the day was shared on Twitter by @MacroTechnicals. Take it as a humorous reminder that the crowd is often wrong, especially at extremes. When I look at this chart/cartoon, quotes like this one from Warren Buffet come to mind: “I will tell you how to become rich…Be fearful when others are greedy. Be greedy when others are fearful.” The chart begs the question: Are we at a point in the stock market of extreme optimism and greed right now?
Quote of The Day
“A wise man proportions his belief to the evidence”
-David Hume, (Scottish Philosopher)
Top Links
Craig Johnson, Chief Market Technician at Piper Jaffray made an appearance on CNBC yesterday giving his thoughts on the Biotech sector. This article sums up some of his key points.
Millenium Falcon – Ready to Launch – Greg Schnell – StockCharts.com
In this article from StockCharts.com, Greg Schnell does a deep dive on Disney’s chart ($DIS). He points out that the stock is testing a four-year resistance level and could be on the verge of a breakout.
Boeing Soars – Bespoke
Boeing is the best performing Dow component this year, up a whopping 50% from the December lows and up 36% YTD. This short note from Bespoke highlights the fact that this has been one of the best starts to a year for any Dow Component in decades.
Some Choppy Waters Likely Ahead – Tom Bruni – All Star Charts
Tom Bruni of All Star Charts gives his outlook for equities in the near-term. He explains that while the major US indices are showing no clear trend, there are still opportunities from some of the individual names within them.
FANG Still Alive But No Longer Leading the Pack – The Chart Report
Here’s an article from The Chart Report discussing the FANG stocks. The article features an interview from CNBC with Ari Wald of Oppenheimer.
Top 10 Tweets
Market, Part II: The uptrends broken in many leading indexes yesterday is not a surprise. The market has been over bought and in need of a normal and healthy pause.
— Ralph Acampora CMT (@Ralph_Acampora) March 5, 2019
Perspective! Many groups up +25% off the lows… a pause or consolidation is likely. Markets churning last 2 weeks, but no meaningful selling pressure. @StrategasRP @DanCliftonStrat pic.twitter.com/ZbVajNWBIm
— Chris Verrone (@verrone_chris) March 5, 2019
$SPY back to caution as 5DMA is turning lower and trendline catches up to price,
130 minute chart with (orange) 5 DMA pic.twitter.com/sfotDo2zG5— Brian Shannon, CMT (@alphatrends) March 5, 2019
Utilities have been holding up well on a relative basis for the last 5 months or so.
Does Utility out-performance always mean doomsday is ahead for the broader market?
As with most things, it's complicated…context matters.
That's why we take a weight of the evidence approach pic.twitter.com/LgCzir8YgN
— Tom Bruni (@BruniCharting) March 5, 2019
Large speculators are extremely short on an adjusted basis. That may seem like good news to contrarians, but we don’t find it very effective/consistent. To find out more, visit us at https://t.co/cSEyf52ogK pic.twitter.com/94TxacsPRf
— Renaissance Macro (@RenMacLLC) March 5, 2019
Smart money flow diverging significantly vs. S&P 500!
Looks to me like US stocks could be hanging on the edge of a cliff. pic.twitter.com/lZVJ6NKSVL
— Otavio (Tavi) Costa (@TaviCosta) March 5, 2019
Here we go again. Smart money vs 'dumb' money making the rounds. Hopefully you have all read how the index is actually constructed vs assuming the name of it has a literal meaning. $SPX $XLK $EEM pic.twitter.com/Y65lBFzRDd
— Arun Chopra CFA CMT (@FusionptCapital) March 5, 2019
Did Chinese Internet find support near former resistance? What are you guys thinking here? $KWEB pic.twitter.com/zv1kblTqze
— J.C. Parets (@allstarcharts) March 5, 2019
$LTC leading $BTC higher pic.twitter.com/ufcaGcwWBJ
— Peter Brandt (@PeterLBrandt) March 5, 2019
Art that should be in a museum. pic.twitter.com/y4dzftvcX4
— Andrew Thrasher, CMT (@AndrewThrasher) March 5, 2019