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Today’s Summary
Thursday, May 16th, 2019
Indices: US stocks were higher in today’s session, with the Dow Jones Industrial Average closing up 215 points or 0.84%. The Nasdaq led the rest of the major indices, finishing up 0.97%.
Sectors: All 11 S&P 500 sectors finished positive today. Materials led, gaining 1.40%. Energy lagged, closing up 0.55%.
Commodities: WTI Crude Oil futures rose 1.88% to settle at $63.18 per barrel. Gold futures fell 0.86% to $1,286.7 per ounce.
Currencies: The US Dollar Index was higher by 0.28%.
Interest Rates: The US 10-year Treasury Yield rose to 2.396%.
Here are some of the best charts, articles, and ideas being shared on the web today!
Today’s chart of the day was shared in a blog post by Hedgopia (@hedgopia). The green line is the S&P 500 and the red line is the ratio of Junk Bonds ($HYG) to 7-10 year US Treasury bonds ($IEF). This ratio ($HYG/$IEF) is a common indicator of risk appetite as it describes the relationship between risky assets and safe haven assets within the credit market. As you can see, the ratio peaked before the S&P 500 began pulling back from all-time highs. If the S&P recovers to new highs, it’ll be important to keep an eye on this ratio to confirm that we’re in the type of risk-on environment that can sustain a bull market.
Quote of The Day
“Arrange whatever pieces come your way.”
– Virginia Woolf (Writer)
‘Godfather’ of chart analysis says Wall Street shouldn’t bet on stock-market records anytime soon – MarketWatch
The legendary Technical Analyst, Ralph Acampora was featured on MarketWatch today. He explained that the market needs to reach fresh highs in order for him to become confidently bullish.
ForexAnalytix’s Perry Says Buy S&P 500 E-minis Down to 2660 – Bloomberg
Joe Perry of ForexAnalytix joined host Abigail Doolittle on Bloomberg yesterday to share his thoughts on the S&P 500. He thinks the S&P will trade lower from here but adds that the 2660 level would be a good place to get long.
Bitcoin Rally Over? – Forex.com
Bitcoin has been surging the past over the past couple months. In this article, Forex.com breaks down the price chart of Bitcoin and argues that the recent strength doesn’t necessarily confirm the end of Bitcoin’s long-term downtrend.
Seasonal Weakness in Silver Usually Lasts Until Late June – Almanac Trader
In this quick read, seasonality expert, Jeff Hirsch takes a deep dive into Silver. He points out that the precious metal tends to peak in May.
Strength in Staples – Dragonfly Capital
Greg Harmon of Dragonfly Capital is bullish on the Consumer Staples sector ($XLP). He likes the fact that price is holding above former resistance, and notes that momentum is in a bullish regime.
Top 10 Tweets
A more robust bullish day for $SPX today. The gap higher on the open is another further restricted jump. Enough here to get 2,950 eventually? pic.twitter.com/P58TZiFlPk
— John Kicklighter (@JohnKicklighter) May 16, 2019
All of the S&P's gains this year have happened during the day, and all of the losses at night (especially during the recent $SPX decline)
Here's what happens to $1 in 2019 during the day (blue line) vs. night (orange line) pic.twitter.com/Zco4kdcym2
— Troy Bombardia (@bullmarketsco) May 16, 2019
The Chinese #yuan continues to weaken and that’s often not a good sign for risky assets. #CNY pic.twitter.com/vbVH5ZLDSq
— jeroen blokland (@jsblokland) May 16, 2019
Who's lying to us today, the yuan or stocks? pic.twitter.com/12Wb1MB6IE
— Luke Kawa (@LJKawa) May 16, 2019
$SOX fell 11% from 4/24 peak into 5/13, yet while market has recouped half its losses, SOX is up a mere 1.4% off the low close- We'll see if $NVDA & $AMAT can help jumpstart pic.twitter.com/yeuESOw46r
— Mark Newton (@MarkNewtonCMT) May 16, 2019
Semiconductor Index ($SOX) in the red all day today, finishing down 1.7% (more than 250bps worse than $SPX). Looks like a change in character over past month. Seems like that might matter for overall market. pic.twitter.com/fvWuJQYITJ
— Willie Delwiche (@WillieDelwiche) May 16, 2019
$SMH Semi's are not performing with the broader market. Getting whacked again after the ratio trend breakdown.$SPY $QQQ pic.twitter.com/yQhZeXnyF0
— Matthew Timpane, CMT (@offbeatoperator) May 16, 2019
Are investors hiding out in the US just like 3Q18? pic.twitter.com/7xLyWrhWvA
— Bear Traps Report (@BearTrapsReport) May 16, 2019
More lows in non-US stocks vs. US $VTI $VXUS $UUP pic.twitter.com/thR2PuVvsL
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) May 16, 2019
Bitcoin ruh-roh! pic.twitter.com/3nZuQc8gAf
— Michael Kahn, CMT (@mnkahn) May 16, 2019